The Washington herald., 1920-11-17
FEEBLE RALLY
IS MAINTAINED
Trssd Ds.ia.st During Previsss.
Clsse cs.i.ses nkrssshsst Days
Irregular Sess;ss.
MONEY RENEws AT 9 PER CENT
Slight Advances Recorded Due 10
csverias Of cennitnenh By
Short Traders.

NEW YORK. Nov. 1.-THE feeble
rally which started in the stock
market late Monday continued into
todsy's session. The oversold con-
ditIon of the general list found re-
nection In gains which at one time
during the forenoon amounted 90
from one to three points in The most
active issues. Call loans were re-
newed at eight per cent which is the
lowest renewal rate recorded In
about a month. Expectations were
that the rate would work lower dur
ing the day. but this expectation
was not realized owing to the gov
eminent Withdrawals. which
amounted TO ss.200.O00
Purchases were largely for the ac-
count OF professional shorts. who.
believing that the list was due for a
rally. covered their outstanding
commitments with a vie VITO put
ting out new short lines upon any
further advance. As soon as the
professional buying became ex-
hausted the list began TO recede IN
the late afternoon. The ease con-
tinued up TO the close hut a fair
portion of the days bettermeut was
maintained and final quotations
showed net advances ranging from
a fraction to a point
Liasidaties Breaks Rewards
Liquidation continued In some d.
rections and as a result several new
low records we're made in some Il
the industrials. Bankers who be-
lieve that general Liquidation has
run its course In the stock market
contended that some new low rec
ords must be expected to be estah-
lished in instances where liquidation
has not been completed.
These bankers are advising the
purchase Of stocks at this level but
are cautioning prospective buyers 20
pick out only good dividend paying
issues. They contend that this Is no
time to buy anything but the best
class of rails and industrisls.
Less gossip was heard regarding
probable commercial failures. In
portant bankers are laying more
emphasis on the necessity OF re-
tailers cutting prices before the
deadlock between the buyer and sell
ler. which is responsible for credit
stringency, can be broken Charles
H. Sabin. president OF the Guaranty
Trust Company. is one OF Wall
Streets important bankers who
looks for retail price reductions
There are many others who share
his expectations and are expressing
them privately.
Electric stocks were subjected 20
pressure. This was especially true
of General Electric. which has been
sold heavily the last week by one
prominent commission house.
Motor shares
Motor shares continue favorises
with many persons bearish on the
general market. Az 2 result Pierce
Arrow and General Motors touched
new low prices. u il true that the
new bottoms were only a shade un-
der those recorded last week.
Chandler Motor was attacked in
the late afternoon and declined ga
points TO a new low for this move
ment.
R-u stocks
Southern Pacific and Northern
Pacific were favorites in the rail
group. Early in the session con-
centrated purchases caused an ad-
vance in Southern Pacific which
carried il more than ? points above
the previous closing. The Street
feels confident that the executive
committee will soon issue its segre-
cation plan. Notwithstanding rumors
that there has been a hitch IN the
negotiations. Much ado was made
yesterday OF the fact that oil has
been discovered in the territory ira
versed by the Northern Pacific. This
fact was known nearly a year ago
and persons who bought the stock
on knowledge Of IL took large losses
some time later owing TO the gem
eral downward movement in the
rails which was in progress at that