New-York tribune., 1920-10-31
Market Tone Firm
On Pre- Election
Buying by Shorts
Traders for the Most Part
Await Result Tuesday:
Many Are Still Bearish i'm
Spite of Predicted Rise

Action Of stocks at the exchange In
yesterdays two-hour trading session
suggested jockeying for position by
professional spectators in anticipa-
tion of the election on Tuesday. The
possibility, Of bulge In the event of
an overwhelming Republican victory
at the polls caused many traders who
will not come down to business on
Monday to cover their short commit
ments. This movement however. was
not sufficiently. extensive to bring in
any great volume Of buying, although
it did serve to impart f1rm tone to the
general list.
The majority Of traders In the mar
kct do not look now for any pro-
nounced movement in speculative Sc
curity prices until after election. The
attitude of the rank and file is to await
the results. Traders who had been
predicting prediction recovery OF
pronounced visor are now talking of
boom after election. The professional
bear traders seem, however, to have
more courage than the forces aligned
uron the constructive side.
In yesterdays market, as on Fri
day, the buying of Southern Pacif c
stood out as the most impressive de-
velopment. The stock again led the
market in point of activity and at
fraction above 102 tolchcd new high
for the movement. About the only
thing that can be said about the move
in Southern Pacific is that it appears
to be good buying based upon the
strong position Of the road. If the
management of the system should 80
decide it would be possible on the basis
Of earnings O. the Southern Pacific
~ hot toll To- q. 4
leaving sizable surplus besides.
Southern Pacific. 1t was pointed out
yesterday, would benefit from the rec
ognition by the American government
of the new regime In Mexico
A week spot In the industrial list
Was U. S. Rubber, which broke more
Than 8 points on the announcement Of
reduced prices.
The reports that the Washington
government may shortly take such &C
tion with regard to Mexico brought in
some buying Of the Mexican oil shares
yesterday. The news had been DIS
counted to large extent, however,
in the rally Of these shares on Fri
day, 80 that Mexican Petroleum, sitter
showing a small gain yesterday, sagged
at the close for net loss Heavy
trading occurred In Mexican govern
ment bonds the IS ranging between
a. and AS a. Many Of the transactions
we're for foreign account as was in
dicated by the fact that they were
made on basis which gives the seller
thirty days in which to make delivery.
One oi the interesting developments
in the financial markets as the week
closed was the weakness in the Euro
pean exchanges, with sterling, francs,
lire aud marks yielding sharply. In
the Case Of sterling the decline was
quite pronounced.
The New York Federal Reserve Bank
improved its reserve position slightly
last week as result of accessions Of
gtio, but it increased its borrow nes
from other reserve banks by s23 900 900.
making the total Of this item S4S..
100000. In the gold settlemen, fund
the bank gained approx mAtely $20,-
600 900, while its holdings of gold and
gold certificates Increased about
S4,ooo,ooo Borrowings of member
banks against governmen, war paper
decreased approximately $4,000 coo,
while those against commercial paper
increased 37,000,00O The ratio of
total reserves to deposit and Federal
Reserve note liabilities combined stood
at 39.l per cent at the close of busi-
ness on Friday. against 1876 the week
before