Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-16
MARKET ACTS WELL
IN FACE Of NEWS
European Reports Not Of
Character to Inspire Con-
fidence-Some Gains.
BY STUART p. WEST.

i BY STUART r. WEST.
| NEW YORK, August 16.-An I'M
| prejudiced view of today's stock mar
ket would have certainly been that
| it did very we'll in the face of the
obstacles which it had to contend
| against. While it might have been
| said that the fall of Warsaw had been
pretty well forecast at the close Of
; last week the actual investment of
the city announced over Sunday
brought the test more plainly before
the markets.
While it also might have been said
quest and the suggestion of German
alliance were not to be taken very
seriously on sober consideration OF
the subject. still the way these things
were played up in the morning head
lines was not calculated to build up
sentiment on the buying side.
The Saturday bank statements were
not at all unfavorable when every
thing in connection with them came
to be taken into account. They did
show. however. rather important
loss in the New York district, and
this was point which could be made
much of had the market been sensl-
tive to bad news.
The way the share list stood up
under these unpropitious surrouno-
lnsS lnolcateu DeyOnu quoS
improvement in the Wall street sltua-
ton brought about by the heavy
liquidation of recent weeks.
Any market in the position of that
a month ago would have broken unoer
such a combination of apparently I'M
favorable developments over Sunday.
AS it was prices did open down quite
sharply. the speculative leaders get.
ting off point and point and nail
on the first transactions. But IL was
at once evident tat no hquloation
was coming out.
The efforts of the bear party to start
a fresh downward movement were un-
availing except in very Few speciai.
ties. With the course of the nrst nan
hour the greater part OF the opening
the market settled down into extreme
dizziness.
Early Declines Made.
An irregular selling movement fea-
tured the Immediate opening. affect
ing most of the industrals and
in a lessherd degree the rails.
Shippings, oils, motors ana steels'
speculative leaders, were under pres
sire and Welded for losses of l to
points. , ,.,
Some of the high-grade rails. like
Canadian Pacific. showed some recoV-
lies in prices.
Sterling exchange, however. was
dc cidedly nervous and the initial
rates showed slight concessions from
last weeks closing.
After the first break the market
gradually settled down into inactivity,
with a rally led by equipments. OILS
Mexican Petroleum and BALDWIN Loco
motive, the two last-named making
full recoveries from their early de-
clines.
loss, but the rally passed before noon,
when heavy selling of the cheaper
priced motor and oil shares and a
trial by the bears for break resulted
in depression.
Cali money opened at Z per cent,
nor was the demand at all urgent.
Slow During Noon Hour.
The market moved along slowly
during the noon hour, when display
of strength in Royal Shell and Royal
Dutch gave the market little firm
err appearance. but the industrials as
a class continued to move at an ir-
regular pace between the low and
high figures of the morning.
Traders were at a loss to make a
satisfactory analysis of the news
from Europe and therefore preferred
to take a waiting attitude. save where
the bears kept trying for further
weakness. but without especially
good success.
shorts Covering.
In the last hour the short interest
began to show signs of uneasiness.
The bad news which it had counted
upon to start another downward
movement had failed to do so. The
market had given an Impressive dis
play Of calmness in face of the un-
certainties of the European political
situation and in face of the decline in
the New York Federal Bank ratio.
Covering purchases made their ap-
pearance first in Crucible Steel. which
ran up we'll above last weeks high.
A similar demand set in for Baldwin
cos. the oils and other industrials
which have recently been favorite OBJ
jects of bear attacks. Under this
buying the remainder of the early
losses were made up, but the advance
went no farther.
Break in Cotton.
The feature of the day was vio-
lent break in cotton, which carried
some options down as much as 100
points. This decline showed that the
cotton market was not in the strong
position that the stock market.was to
bear the strain of the European un-
certainties.
straight out-and-out test of sentiment
regarding the outcome in Poland. be-
cause the weather news has been so
consistently favorable that it has
undermined the cotton markets
strength quite irrespective Of events
abroad.
Sterling exchange was off a cent
and half. but French bills were
higher. and the wheat market, which
goes up on war scares. today was
lower.
FOREIGN RONnS