New-York tribune., 1920-10-21
Market Recovery
Continues; Stocks
Show Strong Tone
More Hopeful News on Brit
ish Labor Situation Is
Constructive Influence;
Sterling Rates Are Higher

More hopeful news regarding the
labor situation in England vas con-
structive influence of considerable i'm
portance in the local financial markets
yesterday. At the Stock Exchange
speculative security values continued
to advance, while the recovery begun
the day before in cotton carried still
further. In the foreign exchange mar
ket, where there had been selling for
several days in anticipation of the
strike developments, the tone was
steadier, and sterling rates closed
higher, showing a recovery from Tues
days low of fully cents in the pound.
About the only exception to the gen
eral tendency toward recovery was in
! the grain market, where wheat and
corn declined, the fresh setback in the
latter establishing a new low for the
season.
Stocks started out with a fair dis
play of strength and acted we'll most
of the session, with only few eXcep
tions to the general upward tendency.
Oil and steel shares were particularly
strong at times. The rising strength
of the steels persisted, despite unfavor
able trade views upon the situation in
the industry, which called attention to
the pronounced movement toward the
reduction of pig iron prices and an in
creasing number of mill shut downs.
Where the mills are not being closed
a drastic policy of curtailment has
been put in force by many of the in
depcndent manufacturers
In view of the widespread uncer-
tainty regarding the future of the steel
market the quarterly statement of the
Republic Iron and Steel Company,
covering the three months period
ended September 80 attracted much in
terest. This showed earnings equiva-
lent to $956 a share on the common
stock, compared with S6.22 share in
the preceding quarter and the only in
dication of the general slump in busi
ness was to be seen in the statement
of untitled tonnage at the end Of the
quarter, which showed a falling off
compared with the preceding quarter.
The report of this company was of spe
cial interest to the Street, since next
week (Tuesday) the United States Steel
Corporation will make public it's quar-
terly earnings. In the June quarter the
corporation showed net earnings of ap-
proximately $43 100000, and prelimi-
nary estimates have placed net for the
September quarter at $40,000,0 900 to
SAT 0000 900.
Much of the buying which accounted
for the better tone displayed by stocks
generally originated with the profess
sional traders who have been selling
steadily for the decline. The short in
terest in many of the speculative favor
ties is undoubtedly of large proportions,
and the more hopeful outlook yesterday
was enough to cause some Of the timid
bears to retire their commitments.
Among the strongest features in the
days market were the public utility
shares, notably Consolidated Gas and
Peoples Gas of Chicago, the latter re-
spending to petition for ain increase
in rates with an advance of more than
points. Sears Roebuck, special
bear target in recent days, came back
strongly on active buying. One of the
few weak spots in the market COM
prised the shares Of the paper COM
panes. International Paper common
broke more than points and American
Writing Paper was similarly depressed
on rumors of an impending reduction
in paper prices. The rail shares held
steady, but were not as prominent as
on recently preceding days.
Call money was somewhat firmer yes
terday, holding at per cent through
out the day. To-day the Treasury will
withdraw $21 100000 from the local
banks, and there was fairly heavy call
ing of loans yesterday in anticipation
of this payment.