New-York tribune., 1920-04-14
Market Is Strong
I'm Face of Many
Adverse Factors
IL Per Cent Call Money and
Professionals Move to
Depress Stocks Fail to
Prevent Big Rush to Buy

Wall Streets judgment that the
strike of railroad workers is waning
found reflection in a higher level Of
speculative security prices yesterday
The stock market gave remarkable
exhibition of strength in the face of
a number of adverse factors, not the
least important of which was another
rise in call money rates, this time to
12 per cent.
After a good deal Of backing and
filling in the early hours, when no clear
iy defined trend was disco rnible, stocks
gradually took on a better tone, until
in the final hour prices moved forward
sharply in response to aggressive buy
ing. Although at the close the range
Of prices still indicated some degree of
irregularity, nevertheless the general
run of standard issues showed net
gains, in some cases reaching several
points. Sugar shares. oils and steels
were the prominent groups, the sugar
stocks in particular finding favor with
the speculative traders.
Professional operators worked hard in
the forepart of the session to depress
prices, but their efforts were not very
successful, for stocks appeared to Of
fer sturdy. resistance to the bear sell
ing. In view of the action Of stocks
and the news from the strike, the
professional contingent accordingly
changed tactics in the afternoon, when
the traders switched to the buying
side, COVERING in considerable portion
of the short lines put out earlier.
At the same time the more hopeful
view of the railroad situation taken by
the financial community induced buying
for the advance by traders who had
previously sold out of fear of a general
market decline. To those interests
who believe in higher prices the mar
ket's action was considered significant.
Operations in many special issues con-
tinued to be based upon stock dividend
possibilities. The announcement of a
SO per cent stock dividend by Union
Bag & Paper came after the close of
the market. This development had
been anticipated by the recent rise in
the stock.
While the strike situation appears to
be improving nevertheless its effects
must have already been far-reaching.
Even though the strikers were to re-
ouAo WOIh tO-udy IL WOulQ lake con-
siderable period for industry and trade
to get back into its normal swing.
Bankers here are already noticing the
effect of the strike upon demand in
commercial loans. Inquiries for larger
credits are being received in increas-
ing volume from commercial concerns
which, because Of their inability to
market their goods, suddenly. find
themselves confronted with the neces-
sity Of borrowing to tide over the
period.
Further Withdrawals of funds on
transactions with interior banks were
mainly responsible for sending call
money to IL per cent at the close yes
terday. Call loans had renewed at z
per cent. Around midday the rate
moved up to 8, then to 9 in the early
afternoon, where it held until in the
final hour, when 12 was paid by stock
exchange borrowers.
Approximately $15,OO0,000 in gold
was taken for export to South America
yesterday. The foreign exchanges
moved in favor of London. Paris and
Rome. Sterling developed stronger
tone. Bankers believe the sharp move
ment in exchange against Paris in re-
cent days has been due almost entirely
to political developments in connection
with hhe Ruhr affair.