The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-28
FINANCIAL NEWS
AND COMMENT
Periods of Strength and Weak
ness Continue to Character
ize Stock Market.
LOSS PARTLY RECOVERED
Local Federal Bank Improves
Reserve POsition-Ratio
Reaches New High.
LOSS PARTLY RECOVERED

The short session OF the stock mar
ket yesterday was very similar to that
Of the preceding day and also that Of
Friday. The only real difference was
that its business was on a smaller
scale. Periods of weakness and OF
strength that have characterized trad
ing during all of last week, and minor
outbursts of liquidation in the special
ties, particularly those stocks in which
Allan A. Ryan was interested. occurred.
The Street took the Ryan story as an
indication OF weakness in those stocks
and naturally sold them. but not great
deal of progress was recorded except in
one or two particularly vulnerable spots.
The general market was heavy from
the start, but it did recover part of Its
loss In the last hour on short covering
and the usual evening up of commit
ments for over the week end.
The news was decidedly bearish
again, but no one had expected fresh
selling movement yesterday. largely be-
cause of the week ends cessation Of
business. The Ryan story showed that
bankers are still at work, fixing UP the
so-called weak spots in the market In
deed. It is understood on the very best
authority that there are at least two
more such spots to be remedied before
Wall Street can consider itself in a
normal state. But while these spots
may seem for the moment unfavorable
to the share list, they are, neverthe-
less, the very factors which will lead
eventually to Improvement.
Vanadium was the principal sufferer
as result of the Ryan story. That
stock had shown the least resistance Of
the whole Ryan group. Consequently
it was naturally the principal target of
showed signs of rallying after 1t had
recorded a new low for the movement.
As for the rest of the list, traders con-
tinued to sell that also at the start, but
interest died out and the market was
Inclined to rally. That rally, however,
was a very disappointing affair in that
It represented short covering entirely.
There were no evidences of buying,
which IS the one thing that eventually
will solve the present stock market diff
ficultles. In short, the market rallied
solely because certain traders chose to
cover their commitments over the week
end, as they did not wish to take the
chance of remaining short. with the
possibility of something favorable de-
veloping during the period Of suspended
animation.
The feature OF the bank statements
was the substantial Improvement in re-
serve position OF the local Reserve Bank.
The ratio of reserve advanced to a new
high for the present upward trend not
wlthstanding the fact that the bank Is a
lender to the United States Government
on Treasury certificates to the extent of
7O,705,500. The ratio OF total reserves
to deposit and Federal Reserve note
liabilities combined was 40.S per cent,
against 40 per cent. in the preceding
week, and last weeks ratio of reserves
to net deposits, after deducting 40 per
cent. for gold reserves against Federal
Reserve notes in circulation. was 41.9
per cent. against 40 per cent In the
preceding week. The shrinkage in gross
deposits was sS5.s16.00O. At the same
time the debit float was reduced to the
extent Of S2O.OOO.OOO. That development.
coupled with gain of Ss.7OO.0OO in
total reserves. was sufficient to explain
the rise in reserve ratios despite the in
crease of s7.0OO.OOO in notes in circula-
ton.
The Clearing House bank statement
disclosed a deficit in reserve of s4.0S5.-
500, but It was insignificant. as increased
borrowing at the Reserve Bank would
correct the deficit promptly.