Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-01-27
TREND OF MARKET
|SH|GHER TODAY
BY STUART y. WEST,
Special Corrcspondcnt of The Star.

WALL STREET. New York. Jan
uary 27.-For the greater part of the
time the market today continued its re-
coNery. Sterling exchange continued to
break, getting down close to $50 Can
money at the same time went up the
renewal rate was raised from to
per cent and the bulk of the new accom-
mediation cost the high figure But IN
face of these adverse happenings stocks
onened higher and continued TO move
ahead until the active speculative
leaders had completed a gain from five
to ten points from the prevailing prices
of less than "A week ago.
Favorites Dividend Payers.
The favorites again were stocks in
position TO declare lUge extra
dlNicendS out of undistrihuted wat.
prontS. This group was still feeling
the stimulus offered by the action OF
the Crucible Steel directors in declsr-
ing their purpose to pay out a good
part of the accumulated surplus "f
the last five years to holders al q ..
common stock. The idea that other
companies would follow suit .ith.r
with or without n favora bic decision
in the stock dividend tax case ar-
counted for the buying when went
on in such stocks as Baldwin Loco
motive. American Wool and National
Lead.
short Interest Punished.
n short interest in the motor and
tire issues were badly punished
Crucible. Studebaker. Chandler Mot
ors, General Motors and Pierce Arrow
all ran up sharply. The motor ac-
cessory shares. particularly Bosch
Magnetic and Stromberg. were in de-
mand.
The buying in Bosch Magnetic was
based upon well authenticated infor-
nation that the dividend will be-
raised at the next meeting from s.
10 $40 a share.
The coppers. which had hung back
yesterday. came more to the front to-
day. On the other hand the rails were
heavy. rejecting the uncertainty as
will afford adequate protection for
the roads in the shape of higher rates:
Fresh Buying Is Evident.
Taking the market as a whole, those
who have been most optimistic dur
ing the trying times of the last week
or so found their attitude justified.
Still they We're not inclined to look
for any active speculation that would
carry stocks much higher imme-
diately.
Rather. today's proceedings were
the further development of an over
sold market. and the principal i'm
pulse was derived from short cover
ing. except in some of the indus
trials. where melon cutting is looked
4
of fresh buying also.
Prices Mount STEADILY.
Trading became very duh during the
intermediate session, but prices
mounted steadily.
The movement continued to center
ir high-priced industrials and special
ties at extreme advances of to II
points.
Rails were the only issues to make
no appreciable progress
Change of Sentiment.
The average Wall street letter al
ways floats with the tide. therefore
it was no surprise to see the sudden
shifting of attitudes beginning yes
terday. The same people who were
advising the selling of stocks on
rallies were today telling their Gus
toners to buy on the weak spots.
This sort of advice is seldom helpful
and in the present case has been par
ticularly useless. Those who fol-
lowed it missed the chance to ge5 IN
it again today because there was no
reaction upon which to buy.
Professional Wall street still found
it hard to believe THAT the days of
easy money making on the short side
were over There was a well defined
report of one large commission house
that has been more bearish than the
rest, not having covered anything.
Shorts Hit Bailey.
The street was also full of gossip
about one or two well known plum
gers who were credited with being
badly burned on the short side. One
of these operators had been particu-
larly active on the bear side of Stude-
baker and the abrupt jump in the
stock today was supposed to have
been due to his covering.
Brokers representing well known
uptown clique. which was also plung-
ing heavily on the short side. were
active buyers of Mexican Petroleum.
Pan-American and other high priced in
dustrialS.
With this covering out of the way
it was thought likely that the mar
ket might have something of a set