The New York herald., 1920-12-29
FINANCIAL NEWS
AND COMMENT
Bidding for Standard Railroad
Shares Is Active in Sing
gish Market.

A inc or cleavage existed DeLWeen
railroad and Industrial stocks in yester-
days dealings and became more pro-
nounced as time passed. While slug
gish. irregular price tendency among
manufacturing, mining and oil issues
indicated that most OF a rather reluctant
demand was coming from the covering
of short contracts. there was active bid
ding for standard rail shares. which re-
senlbled new investment buying. In
view of the great decline OF all sorts OF
stocks during the last six weeks. It would
not be surprising II some January In
vestment funds already were disclosing
their presence through purchases OF high
grade dividend payine shares in advance
OF the actual receipt of next months
interest and dividend money by the
buyers. Purchases of securities on
have been feature Of investment deal
ings In other periods Of greatly depressed
quotations. But whether or not this was
factor yesterday. 1t was evident
\
moro In Chesapeake and Ohio, Delaware.
Lackawanna and Western, Reading.
Southern Pacific and Union Pacific that
the outlook for the rails was considered
moro promising. at the moment than
was that for the industrials. While
few rails receded, the broad tendency
OF all classes Of that department was
toward firmness.
The market had to contend with the
influence Of the Anaconda Copper Conn
pany's dividend omission for the current
quarter. which. while expected. was de-
pressing upon sentiment. The absence
Of buying power. except at sharp price
concessions, was shown in substantial
declines Of Crucible Steel, Atlantic-Gulf
and West Indies and New York Air
Brake. 1t would be difficult to select
particular reasons for the reaction Of
those stocks which displayed real weak
ness, for what has occurred IN the mar
ket during the whole Of this month in
dicates that the effect Of general proc
esses working toward price readjust-
ments Is being disclosed In sudden and
sometimes unexpected recessions. Until
the buying publics confidence In a full
realignment of prices to changed indus
trial conditions has been aroused 1t Is
difficult to see how a broad demand for
many manufacturing and kindred stocks
can appear. The great decline of the
autumn, however. certainly has carried
the readjustment far along. and no one
may predict whether the public's in
terest on the buying side will show signs
OF reawakening In short or long period
Of the new year.
Call money remained at z per cent
The Liberty bond market reflected the
presence OF a fairly active demand, as
on Monday, although the final list of
prices was irregular. Corporation bonds,
too. were moderately active and steady.
II the investment following Of funded
securities was convinced OF a real ease
ment Of credit In the near future. there
should be more evident indications than
yet seen Of broad buying of bonds. Since
the rise OF October occurred many rail-
road issues have retraced a part of the
ground gained then. Doubtless the re-
cession of low priced railroad bonds
particularly has been the result of specu-
lative profit taking. but the market has
yet to set forth the sustained influence
Of genuine accumulation for the long
pull and for the sake Of high return
on investments.
Foreign exchanges were firm for a
time. especially western European rates.
but late reaction eliminated most of
the gains. Sterling sight drafts at
3.50N were fractionally above the pre-
ceding days last quotation. The Ital-
ian rate reached downward to 3.34, a
new low record, and French, Belgian
and Swiss francs closed lower on the
day. Pressure of selling for domestic
and foreign account came heavily into
the cotton market bringing new low
records for the year. one or two options
falling under 1914 cents a pound. A
reflection of the rapidly declining price
OF cotton was seen in the detailed ex-
port figures for November, issued yes
terday. which showed that while ap-
proximately 100000 bales more of the
staple went abroad than in October the
value was about the samo In both
rnontha