The New York herald., 1920-12-03
FINANCIAL NEWS
AND COMMENT
Majority of Leaders in Stock
Market Advance-S0me
More Than 6 Points.
REALIZING NEAR CLOSE
Southern Pacific Plan Gener-
ally Considered Disappoint-
ing and Stock Drops.

IL ytSltludy SlOCh uldThcl ndQ ndQ
to depend upon the Southern Pacific
plan for it's principal stimulus for higher
prices ii would have made a very sorry
( spectacle indeed. That plan was an
nounced as expected. but Wall Street
was so confused as to the real value
of the present stock under the plan
that rather than wait for an explana-
tion it sold the stock again. The rest
very clearly in the sharp comeback OF
prices in the last hour of Wednesdays
session that there was real basis for
a moderate improvement. Consequently
ii did not wait for Southern Pacific.
1t went ahead rapidly from the outset
and before the day was over the ma
jority of leading issues had shown ad-
vances ranging from a point to points
and more. There was a period of
profit taking toward the close, when
traders sold out stocks which they had
purchased merely for the day, but the
market held it's gain in spite of it.
The market gave the best account of
itself that it had given since the down.
ward movement ended. It would have
been an almost perfect day for those
in favor of the constructive side had
1t not been for Southern Pacific. That
plan was taken in some quarters as
favorable, but the consensus of opinion
in most quarters was that it was very
disappointing. 1t not only confirmed
the rumors that had been making the
rounds in the financial community since
! the company announced it's intention of
separating the railroad from the oil
properties that the plan would involve
a payment instead of just a plain dis
tribution, but many shareholders could
not understand why they were being
asked SIS share for assets which
they were supposed to own through
being stockholders OF the Southern Pa
cific Company. In other words. it was
felt in many quarters that instead Of
cutting a melon, as had been expected,
the company simply had levied an as
sessment or something to that effect.
The market. however, went right
ahead with it's improvement, notwith-
standing the fact that Southern Pacific
gave a poor account of itself. As a
matter of fact the best prices for the
day were recorded in the last hour, when
that stock was weakest. AS a general
thing, the Improvement was moderate in
/ rtc With xvI1 ha
gone through, and for that reason the
average observer did not think that it
had been too rapid. Nevertheless sew
eral very spectacular advances were
recorded in such stocks as Mexican
Petroleum and Pan American. Those
issues stood out above the whole list,
but, on the other hand, there was hardly
group that did not feel the improve
ment to some extent unless it could be
said that the copper shares acted poorly.
The coppers continued to be sold under
the strength of the industrials and rails,
but they did not lose much ground.
There was no change in the money
situation during the day, notwithstand-
Ing the tact tnat tne GONernHeHI WitH-
drew further funds from the banks and
the further fact that the banks were
engaged in making the monthly dividend
and interest disbursements. Prepara-
tons for those disbursements. however,
had been arranged for in advance. Con-
sequently they had no effect yesterday.
In view of the fact that the money mar
ket had gone through that period with
out spectacular fiurries, IL was felt In
banking quarters yesterday that there
might be further easing of money within
the next few days. The financial dis
trict still faces tho tax instalment later
on in the month, but on all past occa-
sions furries in the money market on
that account have not amounted to
much. 1t will be recalled that money
became very easy at the time that the
September payments were made and
that not much difficulty was experienced
during the June payments. The ex-
change market held steady again