New-York tribune., 1920-03-19
Stock Prices Go
Higher in Spite
OF Heavy Selling
Market, Stimulated by Easier
Money, Gives Demonstra-
ton of Strength; Public
Interest i'm Speculation

Again yesterday the stock market
demonstrated in rather striking fash
ion the correctness of the position of
those traders who have been holding to
the constructive side on the theory
that increasing ease in the money
market would be bound sooner or later
to result in sustained rise in specu-
lative securities.
The upswing in the market, which
began almost at the outset and con-
tinued throughout the session with
moderate recessions at times as profit
taking sales appeared, was in many
respects the most impressive since the
market definitely turned for the bet
ter. To all outward appearances the
impetus to the advances scored in
many of the more volatile industrials
came from the same professional
trading element that has been definitely
committed to the long side for several
days.
But an interesting factor was in
jected into the market by the appear
ance yesterday of increasing public
participation on the buying side. Such
q development was not unexpected,
since it usually happens that once
stocks get to moving public interest is
aroused to point where buying orders
umc. The entrance of the public into
the market .on more active scale
conceded with decreasing skepticism in
quarters where it has been maintained
that credit conditions were such as to
make any pronounced revival of bull
ish operations next to impossible.
Some of the best Informed interests
in Wall Street were, after the remark
able display of strength in the general
list yesterday, Of the opinion that
while the market might reasonably be
expected to do better so long. as there
is the comparative relaxation in money
somewhat too rapid and therefore a
reaction is to be expected. 1t is also
felt that if the recovery continues
much further at its present pace dis
tribution of holdings by certain syndi-
Gates whose operations were checked by
the break of last month are not un-
likely to become an important factor
in shaping the course of prices.
Trading was much more diversified
than on Wednesday, when Baldwin
Locomotive set off the fireworks. The
strength of the market was general, the
rise embracing most Of the leading
speculative groups Professional trad
ers working on the upward side appar-
entity went first from one group to
another, bidding them up with relative
ease. Buying orders in many stocks
met small floating supply, with the
usual result. Baldwin LOGON otive was
an early laggard, being depressed by
heavy profit taking. but as soon as this
had been absorbed new buying appeared
which lifted it to new high above
l40, followed by a swift setback at the
finish.
Sentiment was naturally helped by
the impressive strength of United
States Steel common, the market
leader, which held we'll in the face of
profit taking and efforts toward forcing
decline in hopes of checking the up
ward move in the general list. The So
called independent steels were also
strong, as were the motors, many of the
equipments and certain specialties
Oils were rather Irregular. although
generally higher. International oils,
such as Royal Dutch and Shell Trans
port, were still under the influence
Of a depressed market in London.
Wall Street found the supply of
call money at per cent sufficient to
meet all current needs after renewals
had been made at per cent The cur
rent relaxation in the money situation
following the strain of tax payments
Is bearing out predictions made early
IN the month that the peak of the credit
crisis had been passed.