The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-16
FINANCIAL NEWS
AND COMMENT
After Rush of Selling Market
Outlets Down and Rallying
Tendency Appears.
RUBBERS ARE PRESSED
Renewal Rate for Call Money
Declines - Foreign Ex-
change Is Unchanged.
RUBBERS ARE PRESSED


ket was called on to absorb another
downpour OF selling orders at the outset
yesterday. This was selling that had
been left over from last week. plus a
certain amount of fresh liquidation from
persons who had become discouraged
ever what they had read in the Sunday
newspapers, but what occurred there
after was entirely different from what
had been looked for. Instead of another
deluge OF selling orders, the market
quieted down very considerably and a
rallyins tendency set in and was carried
through to the finish in spite OF the
bl eaking out OF fresh weakness, notably
in the copper and the rubber shares, on
account Of special considerations. The
" eakness in those stocks naturally in
terfered with the rally in the speculative
leaders but 1t was noticeable that where
rallies made any Roadway at all stocks
held fairly well, a circumstance which
indicated that the pressure had been
checked for the time being at least.
That the market did not rally further,
however. was naturally disappointing to
the rank and file of the financial dis
trict. That section of Wall Street al
ways expects the market to snap back
quickly. no matter what it has gone
through, whereas actually the market
was doing very we'll under the clrcum-
stances by holding its own. 1t was en-
tirely too early to expect a reestablish-
ment OF market confidence, with the
Street facing further cutting down Of
dividends and very unfavorable reports
about the copper companies. But
against those reports there was an
easier turn in the money market right
at the outset, which indicated that there
was very real desire among banking
interests to halt the demoralizing condi-
tons which prevailed on the Stock Ex-
change all last week. The renewal rate
was therefore awaited with considerable
interest, and it was noticeable that as
soon as the lower rate was announced
the market reversed itself
While the selling was checked in the
so-called speculative leaders, there were
still many groups which continued weak.
The rubber stocks. for instance, were
subjected to pressure again on the an
nouncement of the passing OF the Good
year dividend, and fear that the unfa-
vorable copper metal situation would
force the closing of mines altogether.
with accompanying cuts in the dividends
this month. brought a fresh outburst or
liquidation In the copper shares. Those
stocks were carried down TO new low
records for the year, but aside from the
marines. which were weak again. the
rest OF the list gave a fairly good ac-
count of itself in the last two hours
There was rally OF full point in, Steel
common. which is the first time any
thing like that has occurred in Steel
since the movement began. The rail-
road shares were also inclined to rally
along with the steels and equipments
There was conspicuous weakness. how
ever. still In the motor shares, with Cen
eral Motors closing virtually at the low
OF the day. On the other hand, Chan
dler and Studebaker continued to stand
oUt for their firmness.
The 81 per cent renewal rate was
the lowest of the month, but Il was not
taken as meaning that money was nee
essarly going 20 become easier in the
course of the next day or two Rather
opinion was still maintained in banking
circles that little ease In money will be
experienced in the next month or So
AS matter of fact no one looks for
any real change until after the first Of
the year. There may be periods OF
lower money, but any real demand is
bound 10 result in higher rates. whether
II comes from stock market or CONNER
cial sources. The easing yesterday was
surprising, however, In view of the fact
that there will be Withdrawals from the
banks to-day by the Government The
amount TO be withdrawn to-day Is
100000 This is the first time that
money rates have shown a downward
tendency In the face Of Government
Withdrawals. There was no change in
the foreign exchange market. but rally
ing tendencies were more pronounced in
the grain and cotton markets.