New-York tribune., 1920-03-27
Stock Market
Boonns as Shorts
Scramble to Buy
u. S. Steel Common Again
Assumes Lead and Scars
Above los; Impending
Gold Imports a Factor

Another sharp rise in stocks yes
terday afternoon carried considerably
further the short covering movement
that turned the current upward the
previous day. AS the pressure against
the professional shorts increased the
buying from that quarter became
verltable scramble, in many issues lift
ing prices we'll above the early lows
and in some cases to the highest
prices since the February recession.
The most impressive feature of the
day, so far as the movement of individ-
ual stocks went, was the extraor-
dinary display of strength in United
States Steel common. With the mar
ket,s speculative leader bought in
such aggressive manner as to push it
rapidly above 105, new high on the
recovery and an advance of more
than IL points from it's low of last
month, traders short of stocks who
had been hesitatng about covering
rnshed In and made purchases against
their commitments.
kumors of the previous day relative
to impending gold imports for British
account took more definite form. This
fact, combined with decline in the
cali money rate from a renewal charge
OF per cent to 6 per cent
in the closing hour and the sturdy
strength of sterling exchange, whick
advanced &C cents in, the pound. TO
$685., supplied the impulse for
new buying on an active scale. And
as the demand increased it pressed
harder and harder upon the element
working for lower prices.
The financial district heard in the
afternoon, when the market was turn
ing actively upward, that a consign-
ment of $10,o00,000 in gold from Lon
don was on board a steamship near
ing this port. Later reports put the
amount at only $2.000,OO0, but in i'm
portant bankers quarters it was
stated that the amount might easily
run to the larger figure. The Bank Of
England in its weekly statement is
sued on Thursday disclosed loss Of
$l2,500,00O in it's holdings of gold, a
development which was something of
market influence since it was quite
generally accepted as representing a
withdrawal of gold for export to this
country. London cable advices yes
terday said Lombard Street was dis
cussing rumors of impending ship
ments to the United States of as much
as s4,00o,ooO, about s2O,OOO,0OO, the
largest part of which would come
from the Bank of England's holding.
AS was pointed ut several weeks
ago, when the first intimations were
given of a possible movement of gold
from across the Atlantic, an influx of
metal at this time would be an ex-
tremely important development. For
one thing it would, if it reached any
considerable proportions, offset in a
measure the heavy loss in gold suf-
fered as a result of recent large ex-
ports to the Far East and South
America, thus rehablitating depleted
reserve. Whether the Federal Re-
serve Board, which is conducting
campaign to bring about a gradual
contraction of bank loans, would look
with favor upon large imports of gold,
which might be made the basis of a
further imitation, is a question.
1t was a day of wild trading in GER
tain of the motor and motor accessory
shares. The General Motors jumped
to new high record at the opening
on the news of the dividend declara-
ton. Stromberg Carburetor kept up
its gyrations, opening a point up, then
dropped several points, and again
mounting to a new high, close to par.
The performance of Stutz Motors,
which rose AZ points to 324. gave the
impression that the floating supply of
that stock must be extremely small.