The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-23
FINANCIAL NEWS
AND COMMENT
Stock Market Makes All Round
Rally-RecOil of Indus
trials Is Swift.
CLOSE Is AT DAYS TOP
Money Loans Down to ) Per
Cent. for First Time i'm
Nearly a Year.
CLOSE Is AT DAYS TOP

While the market on Friday and Sat
urday had given evidence that the SELL
ing had about run its course. it was not
until yesterday morning that stocks fur
nished definite assurances that the turn
had come. The stage had been set for
the turn all last week, but, while the
market had been in a position to enjoy
n substantial recoil. there was nothing
in the news which would have changed
sentiment sufficiently to bring it about
The news over the week end was. OF
course, more constructive, but it was
left to the announcement that the
du Points had taken over the speculative
holdings Of w. c. Durant in General
Motors actually 10 bring the turn that
the Street had been looking for. This
was indicative of two things: First.
that the banking fraternity was at work
on the so-called weak spots in the mar
ket, and second, that il the decline had
gone far enough to involve holdings as
large as those of Mr.. Durant the gen.
eral list certainly must be fairly we'll
cleaned out.
The net result was very substantial
rally in the market all the way around.
Such stocks. for example. as Crucible,
Baldwin Steel common, General Motors
and others had recoil which was
equally as swift as the decline had been,
a thing that has been entirely absent
from the market heretofore. The turn
furthermore fitted in very nicely with
the outside developments The bank
statements on Saturday showed very
conclusively that the turn finally had
come also in the money situation, and
if there be any doubt as TO this it is
only necessary to remind of the fact
that money loaned as low as per cent.
yesterday for the first time since last
December. All this was indicative OF
very important change in the financial
situation, and the Street fortunately
was not slow in recording the fact, not
only in the stock list but in cotton and
grain as we'll.
The only criticism of the market was
that the rally possibly had gone ahead
a little too fast. 1t was felt that 1t
probably would have been better for the
market to have spread the Improvement
over a matter of several days instead OF
accomplishing a good part of 1t in one
cation at the close that stocks had COM
pleted the rally on the contrary the
market closed virtually at the top for
the day, despite the fact that 1t had to
absorb on the way up a very substantial
amount of selling that had been wait
ing for the first favorable opportunity
This was selling that had been left over
from last week. and advantage was
naturally taken of the first rally TO put
accounts in good shape. There were
few spots where this selling made quite
an impression, but in most cases the
stock was taken very readily at advance
ing prices, which is the first time that
anything like that has occurred in the
share list since the last downward swing
began.
The downward trend In the money
market was accomplished notwithstand-
ing the fact that to-day's Withdrawals
from the banks will be approximately
$50, 000, 900. AS the banks usually pre-
pare for this day or so ahead of time,
It is believed that the Withdrawals will
take place to-day without any effect
whatever on the money market Fur
thermore, in view of the fact that the
rate was allowed to drop az low as 8
/ per cent. yesterday, II would not be sur
/ prising to conservative, interests IL there
we're further drop in the renewal rate,
which yesterday was per cent, the
same as it was virtually all of last
week. II money should be renewed
lower than per cent. 1t would mark
the first time that renewals have been
4 made lower than that figure this fall.
/ The rally in the foreign exchange mar
kets also continued along with that in
stocks. grain and cotton. sterling getting
ahnva 60 "a for the first time since the