New-York tribune., 1920-09-29
Definite Trend
Toward Recovery
I'm Stock Market
Securities Which Had Been
Weak Monday Appeared
To Be Oversold; Resist
ance to Pressure Marked

The stock market yesterday tended
to tear itself loose from contact with
the outer world. and fluctuations of
security quotations responded very
largely to internal influences. In the
parlance Of the street, yesterdays was
essentially a technical market
Although the movement Of stocks
was somewhat irregular, there was a
definite trend toward recovery. The
most insistent selling pressure was
temporarily lifted, and the market place
became quieter and less episodic The
securities which had appeared weakest
on Monday acted as though they were
in an oversold condition, and were
conspicuous in their ability to resist
further bear tactics.
In the outer world the basic indus
trial situation appeared little changed.
News of substantial price reductions
by the Willys Overland Company, by
the Hudson Motor Company and the
Studebaker Motor Corporation reached
the floor and assured traders afresh
that the process of modify
price dehation was going on. How
ever, after week of declines, pre-
cipitated largely by the conveyance
of reductions in important industries,
traders wondered whether they had not
been overriding the effect Of the de-
velopment in industry on the market.
Many observers take the view that the
a year was in anticipation Of a re-
adjustment in industry and in the
credit market.
On the negative side selling energy
was diminished by the clarifcation OF
the banking situation in Boston. The
Federal Reserve Bank of the First Dis
trict (Boston) notified the local region
al bank yesterday that "no member
bank was involved in this difficulty,"
and also that "the fundamental bank
ing position in Boston is perfectly
sound" Brokers bore witness to the
fact that there had been substantial
Monday, but that by yesterday the
movement had ended at least for the
present. 1t was explained that some
persons and institutions sold out part
of their holdings to expand their
liquid assets. Thus the relation to the
decline in the stock market was not
simply sentimental. Well informed OBJ
servers realized the trouble was an af-
termath Of the Ponzi operations and
knew that it affected directly only q
fringe of Boston banking institutions.
lie DuylllS anu SelllnR waves
throughout the day were somewha.
contradictory. and in part neutralized
each other. The opening was irregu-
lar. then the tendency was upward.
The recovery was temporarily checked
around midday, but resumed later in
the afternoon. At times the gains
varied from fraction to two points,
but toward the close there was
slight shading of quotations.
Further proof that the appetite of
the investing public is avid for good
securities bearing high rate of in
terest on the coupon was furnished by
the announcement that the new issue
of $20,000,000 of twenty-year sinking
fund bonds of the Kingdom of Norway
was fully sold on the first day Of the
public offering. In the afternoon Lib
erty bonds, which had become tempo
rarily easier as a result of profit tax
ing, regained the frmness which has
characterized the investment market in
recent weeks.
In the cotton market, as on the
Stock Exchange, technical conditions
made for a recovery. Wheat prices
were again erratic. They declined
four cents to the bushel and then re-
gained the lost ground.