New-York tribune., 1920-08-07
Rally i'm Market
On Profit Taking
By Short Sellers
Break in Early Trading Fol
lowed by Easier Money
and Better Sentiment
as the Stock Prices Rise

Traders who have been prospering
through the decline of security prices
took profits yesterday afternoon. To
do so they had to cover their short
commitments, and their operations
caused rally in stock prices in the
afternoon. The upward movement
came after further liquidation in the
morning had dragged many of the In
dustrial securities to new low level.
The break in the forenoon was large
ly reflex Of the declines of earlier
days. The melting away of market
values had the effect of making hitherto
ample margins thin and insufficient,
and brokers were preoccupied with
sending out unwelcome calls to their
customers for additional margin. In
those numerous cases where specula-
tors for rise replied that there
would be no more margin, stock was
tossed into the market place. Aided
and abetted by short selling, those
who Gquidated their holdings helped
to facilitate the bear movement to
fresh valleys of decline. Toward mid
DAY, it became apparent that the worst
Of the days selling pressure had spent
itself.
Then the call money rates fell from
Z per cent to per cent, and cables
of less disconcerting character were
received from Europe. The specula-
tive element placed favorable intcr-
pretat,on on the published note of the
Russian representatives in London to
the British government, which indi-
Gated that it might be possible to
arrange an armistice. NJ Kameneff' $
reply to the British note of Tuesday
argued that the sole obstacle to a
cessation of military operations was
the absence of the Polish ENJOYS
Market operators, who yesterday
were confronted with a specter of per
haps new general war, seized upon
the change in the character of the
foreign news as a motive for chanping
their tactics. The shorts began to
cover, although not eXcitedly, as they
seemed to dominate the markets
movements, and, in the wheat market.
winch has been rising on the pros
Pect OF more serious complications in
the Old World, there was a sharn
break IN the afternoon. following a
rally In the morning Gains of eipht
cents bushel which was made in the
morning were lost later in the dav
and at the close net declines Of az
TO cents were registered.
Moreover, in the foreign exchange
market, which reflects the fluctuations
IN the international situation With even
greater sensltlvity, sterling advanced
more than six cents to the pound after
having again slumpcd earlier in the
day, and she continental EXCHANGES
were likewise firm.
In 40 e4oa1.
not spectacular. Toward the close
money rates again reached 7 per cent
and some of the final quotations were
lower than the peaks of the dav.
HowTver, the technical changes in
the market were obvious as the ey-
cited selling pressure was lifted
Against the timid recovery of stocks
"hlch were emerging from a series of
terrlflc declines, the striking perform
ance of Delaware, Lackawanna &
western stood in dramatic contrasf
In week of tumbling quotations this
security has made net gain of 341b
points, closing yesterday at 23Sh. M
l91a points for the day The snurt
mas peen accompanied by rumors. but
nH no authentic announcements Mar
ket operators yesterday took much
interest in the report that the rooa
was ABOUT to acquire the Nickel Plate
70 OBTAIN an entrance to Chicaro.
IL has also been eossiped that the
road would soon divorce its coal
properties from the rest of the COM
pShy, put officials have declined to
"uhiit the truth of this version.