The New York herald., 1920-01-27
STOCK MARKET
NEWS AND REVIEW
Prices Resume Their Advance
on Urgent Bidding by
Short Interests.
STEELS AGAIN THE LEADERS
Shares OyerSold and Commission
Houses Were Bare Of Holdings While
Unfayorable News Was Ignored.

It was not necessary to look far for an
explanation of the upward movement of
prices on the Stock Exchange yesterday.
The market clearly demonstrated it had
been oVersold. The supply of stocks was
extremely scant. Commission houses are
virtually bare. In such circumstances
nervous shorts who sought to close their
contracts were compelled TO bid for their
needs. Prices were advanced correspond
ingly. Nor did the several unfavorable
developments over the end OF the week
and during the day aid the unweldy short
interest.
The fact that the bank statements
issued after the close OF trading on Satur-
day had been disappointing had no more
effect on the actual holders of shares
than had the further decline in the rates
for foreign exchange, the unfavorable
news from Washington on the peace
treaty and the omission again of any mem
ton of the stock dividend case in the list
of decisions announced by the Supreme
Court of the United States. The market
continued strong until the end of the
session.
At the outset scattered selling took
place About noon, after the disappoint-
ing Supreme Court news had been pub
lished the market was under pressure
again. But shares offered were absorbed
decline quickly reversed their position.
For the balance of the session vigorous
advance was the order. Stees and egl1y-
ment issues again We're the leaders OF
the market. although the short element
in the motor and paper groups, as well
as in American Woolen, had Very un-
happy quarter of an hour as the say
ing goes. The strength of United States
Steel was noteworthy. in view OF the
Oft i,, 70 I,
corporations quarterly statement to be
issued today.
Crucible Steel made further response ia
the official announcement of the stock
dividend plan. 1t advanced to a new high
level for the movement on frantic bidding
by shorts. Republic Steel, which it is ex-
pected also will "cut melon" was ex-
trenely strong and unusually active Cow
ering of equipment stocks followed that OF
the steels. Interest converged on Baldwin
the speculative favorite of the group, but
American Locomotive and other equip
ments were also in demand The advance
N Writing Paper preferred was directly
connected with news that the company had
announced twenty per cent raise in the
price of its products. The paper trade had
been abundantly prepared for that step by
the recent circulars issued by the company
Some selling of Consolidated Gas was
caused by the annual report of that COM
pany showing sharp falling Off in earn
ings for last year The management had
10 dip into surplus for $4,000, 900 to ma in
tain dividends. Officials of the company
are. however, optimistic regarding the
pending suit to clear the way for an in
crease in the price of gas. Petroleum
shares we're advanced substantially. but
the railroads again were extremely dull
The news from Washington regarding the
progress OF the so-called railroad legisla-
tion was anything but encouraging.
Money was tight. The rate for renewal
OF standing loans was advanced one to
seven per cent. while later in the day new
borrowers we've compelled to pay as high
as nine and ten per cent. Allied exchange
was further depressed. with sterling. francs
and lire reaching new low levels. German
marks and Austrian kronen also broke to
new lows.