New-York tribune., 1920-10-26
Higsh 6 h Money Rates
Check After Rise
On Stock Market
Professionals PerpleNcd Be-
Cause Prices Are Not Show
ing More Sensitivity to Pros
pecis of Republican Victory

A psychology that makes for higher
security prices pervaded the floor Of
the Stock Exchange yesterday, and
quotations, particularly of the oil and
steel shares, crept upward until in the
afternoon money conditions checked
the rise and caused reaction. De-
spite the late downward trend, many
stocks held part of their gains. and
there was no evidence Of conspicuous
weakness
The impulse to rise originated from
the activity OF professional traders.
who In many instances are perpl"xed
because the market is not showing
more sensitivity to the prospects Of
Republican victory week from to-
day. The feeling that domestic politics
ought to act as stmulant to the
market was heightened by reports from
London which indicated that the Brit
ish miners strike might be near an
end. Neither of these influences
brought much response from the out
side speculative public through the
commission houses. The narrowness of
the market is explained partly by the
uncertainty which exists in Industry
and by the lack of funds available for
speculative ventures. Moreover. the
old tradition that the spectacle of
rising prices is the lure that brings a
public following still seems accurately
TO describe the ways of the market
place.
Those who are close to the market
are laying much emphasis on the fact
that it is almost ready to celebrate the
first anniversary OF its bcarish reac-
tion after the feverish bull market
days of 1919. In this connection the
view is frequently expressed by brokers
that, just as the Stock Exchange start
ed to discount depression in business
long before II came, so it is reas enable
to expect that 1t viii anticipate an i'm
provement in industry. This opinion
market has declined sufficiently to take
care of any adverse adjustment in
trade, it cannot move decisively up
ward until the restraints on the supply
Of money available for speculative
purposes are relaxed.
The reminder of the Importance of
money in the present situation comes
frequently. When the rate for call
loans rose from to 10 per cent yes
terday the trend of the market was
reversed
The increase in rate was not surpris-
ing, IN view OF the character Of the
in reserves shown by the Clearing
House banks is the largest of the year
thus far. The government has been
withdrawing funds heavily in this dis
trict and VIII draw ont $2S 500 600
more to-day Brokers hung close 10
the money crowd on the floor yester-
day and even after the close there
We're applicants for accommodations.
After the market tended lower it be-
came still duller instead of moro active,
and this indicated technical strength
he floor traders attach much impor-
tancc to the short interest outstanding.
and among these professionals there
is much less boarishness than recently
prevailed. Some nave turned bullish.
but most are inclined toward watchfu
waiting.
The indications that solution of
the British labor dispute was near
were reflected in net rise of cents
in sterling, which is up + cents from
the low attained last week, when it
was depressed because Of the same
situation. Cotton continued its re-
covery, gaining about cent to the
pound.