Evening star., 1920-10-25
SHARP RECOVERY
ON Foreign NEWS
Sterling, Cotton and Oils Set
Pace on Strike Compro.
mise Outlook.

NEW YORK, October 25.-Inasmuch
as the main reaction last week. due
TO the English coal strike. had been
seen in the sterling exchange market
and the cotton market rather than in
the security mafets. it was not sur
prising that the over-Sunday devel-
opments suggesting an early settle
ment with the miners should have
made themselves felt principally in
the movement of exchange and of
cotton options today.
Sterling had a very sharp rally. with
rates up to s cents from their re-
cent low. Cotton by reason of the fact
that it Is undoubtedly selling below
the cost of production was still more
responsive to the news. The improved
prospect for strike settlement, which
would mean a resumption of opera
tons by the English cotton mills. i'm
parted more confidence to operations
on the buying side of cotton than has
been shown in the market for a week
or more.
In stocks there was much less en-
thusiam over the strike news. not be-
cause Wall street was skeptical. but
because the so-called Industrial crisis
in Great Britain has been much over
rated as an influence upon the price
movement here
The only group which were affected
in any appreciable way were the
petroleum stocks in which London is
interested. especially Shell Transport
and Canadian Pacific, in which there
was considerable short selling while
the labor outlook was darkest.
Otherwise it could not be said that
the London dispatches telling of the
conference between the British pre-
m no 20
than a very subordinate relation to
the strength of the share list.
Rejects strong Position.
The rise in the industrials was SIM
ply a further rejection of the very
strong market which had been dis
closd under repeated tests last week
There was still quite a short in
terest outstanding and the thought
had deepened in the minds OF these
speculators over the week -end thas
they might not find it easy to covef
in their short contracts without bid
ding up prices.
At the same time there were spc-
cial influences at work which ac-
counted for the strength in various
individual stocks. without any need
of seeking broader explanation. The
expectation that the quarterly state
ment of the United States Steel Cor
would make an excellent showing. as
had the similar statements of the
independent steels, made the rise in
steel common quite intelligible. Spec
ulative Wall street. not fully salts
fed with this explanation. started
rumor that the directors would de-
clare a stock dividend. In order to
compensate the steel employees who
had paid above par for their stock
last year.
This story was not taken at all
seiously in responsible quarters. Some
of the gas stocks and other public
utility. issues were in demand for
special causes which are entirely
familiar.
The Mexican oils and the rest OF
the Mexican group were bought mod
erately on the suggestion that there
was more likelihood of a Mexican
loan than thre has been at any time.
standard OIL OF New jersey. Z
Standard Oil of New Jersey. at one
time today was up more than SO
urday and 80 points from the. low
price of $500 made in the middle of
August.
companies which has yet to do the
handsome thing by. its stockholders.
made which will be put into effect
within a very short time that will ap-
pease all of the stockholders and
bring the stock within the price of the
public and the casual speculator
The plan which the directors are
said to have ready to put into effect is
a stock dividend running well over
500 per cent, After this new stock
has been distributed the par value
will be cut from 500 to $25 a share.
The book value of Standard of New
Jersey at. the present time is esti-
mated at $3.50 a share and there arc
Hidden assets which will bring this
value up TO $500 a share.