Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-23


New Yorak. Jan 23.-The New York
Evening Suns closing financial review
today says:
The stock market today received with
more or less Indifference the overnight
announcement of a drastic increase in
rediscount rates. For those who had
made extensive commitments on the
short side in anticipation of declining
market as result of the news, today
stock exchange session was a keen dis.
| appointment.
For a week or more Wall street anG
business generally had been prepared
| for an advance in Federal Reserve re
discount rates the only uncertainty was
in respect to the extent of the advance.
Had the action of the Federal Re
serve authorities come unexpectedly. TO
days market might have been quite a
different affair. As it happened, the
market showed pretty plainly that il
was in a strong technical position and
that during the week there has been
gradual extension of the short inter
est in preparation for the Federal Re
serve bank action.
Stocks opened virtually unchanged
this morning, with trading slow and
cautious. During the forenoon bear
drives were launched against individual
stocks, particularly the motor and tire
issues. These were successful to the
extent Of forcing quotations down to
) points or So but nothing like general
weakness developed.
The futility of bear hammering be-
coming apparent. traders turned TO the
buying side and in the early afternoon
the list recovered a good portion of its
early losses. Beyond this, however,
there was no particular demand for
stocks.
Buyers refused to reach up for stocks,
except in those issues in which the
short interest was heavy. The advance
in the discount rate on Liberty Bonds
from 434 TO 5 ~ per cent was responsible
for declining quotations for these issues.
several of which touched new lows. The
second AIS went below 81, the lowest
quotation ever made by the present war
issues.
The turnover in stocks was somewhat
above the recent average but the market
gave no indications of moving out of the
narrow trading area in which it has
been holding.
Sentiment was extremely mixed, with
bearishness predominating in profess
sional circles, principally because of the
determination of bankers to choke
speculation and turn funds into chan
nels which will promote legitimate com
mercial expansion.
The big lending institutions have no
fault TO find with the relatively small
amount of credit at present consumed by
the securities market and the latest ad
vice in rediscount rates is aimed at
evils of speculation in quarters other
than Wall street. but it is believed that
the stock market is bound to feel the
repressive steps taken. Ultimately.
however, it should share in the general
benefit derived from the strengthening
Of the whole financial structure.
Not much attention was paid to the
reports suggesting an early compro-
mise on the peace treaty. There have
been so many false alarms in this re-
spect the street is disposed to wait
for something definite.
After holding at per cent all day,
the call loan rate rose to $ per cent III
the last half hour. A squeeze of shorts
in Crucible Steel caused that stock to
advance 7 or s points, and other steel
shares made no important changes, the
market remained dull in the late trad
ing and prices sagged off again just
before the close.