The New York herald., 1920-01-03
STOCKS ADVANCE
SHARPLY WITH A
DECLINE IN MONEY
Nervous Shorts Hasten to
Cover and Discover That
Supply IS Scant.

With fifteen per cent call money acting
an deterrent to speculative activity. the
stock market was firm but quite dull yes
terday until mid-afternoon. AT that hour.
however. sharp break in money to six
per cent occurred. The bears. already
nervous over the strong undertone the
market had manifested. were thrown into
confusion by that unexpected develop
ment- Hastily they strove to buy back
stocks, but the floating supply of several
popular issues was scant. In consequence
those who needed them were compelled
to bid for them. The outcome was an ad-
vance of three points to nine points in
such issues. and an upward movement in
virtually the whole list.
Although a reaction from the highest
levels took place under profit-taising in
the last few minutes. the market held
most OF the gains firmly to the close.
Evidences OF well organized buying for
pool account were seen in certain issues,
but outside OF buying of that character
demand for long account was rather
limited. The absence of fresh buying, in
deed. was the real explanation of the
sudden slump in the money market. Most
OF the borrowing was renewals OF cid
loans. After those had been made de-
mand for funds was so small that the
supply proved to be far in excess Of re-
uuirenents.
Aside from the movements In the money
market nothing was developed OF a char
acter calculated to influence the quota
tions for stocks. Sentiment was cheerful
however. with n general air of. expectancy
that next week would see important hap
penings of constructive character after
. the reassennblng of Congress.
, A feature of the market was the absence
Of the pressure noticeable in the last few
weeks OF selling 70 register losses for tax
purposes
That selling necessarily ceased with the
passing Of 1919. II left the market in a
thoroughly liqudated condition, teclin:-
cally oversold and ripe for an advance.
Equipments. oil stocks motors and a
variety of specialties We're conspicuously
strong. international Paper and May De-
partment Stores for example, reached the
highest levels in their history. United
States Realty, in a normal period one Of
the inactivity stocks was bid up several
points on runors that the company Is
about to sell another office building at
a huge profit
division. That issue started the new year
with record Of past earnings which has
never been surpassed by this COM
psny. American International Corpora
ton, American Can Mexican Petroleum,
4. T. Securities, Ciucible Steel Baldwin,
Pan-American. Retail Stores, Barrett
Company and National Aniline were other
stocks which reflected an oversold condi-
tion.
In the late trading there was a sudden
rush to buy steels. particularly United
States Steel common. Railroad stocks
were watched 10 see how the absence of
tax selling would affect them. On the
whole they were disappointing in their
slusgishness. 1t was evident that the pub
lie has decided to wait to see which way
The cat will jump before investing to any
sreat extent in the railroad stock list.
t,n the other hand. railroad bonds were
slrong. In the latter there was rebuying
tt replace holdings sold to register losses.