Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-03
REPUBLICAN SWEEP
WAS DISCOUNTED
After Early Weakness Market
Turned Strong Under Lead
of Railroads

New York, Nov. 3.-The Evening
Sun, in It's closing financial review to-
day, says:
While it was true enough that Wall
street was extremely pleased at the
outcome Of the elections and the re-
markahle vote cast for the Republican
candidates, 1t had too closely calculated
the result in advance to indulge in the
sort of elation which would be directly
reflected in the market for securities.
There was, in truth. neither undue an
imation In trading nor an upward swing
in values. On the contrary, the profes-
| sional bears found ample pretext for
selling short. which they proceeded to
do. and kept up for three hours with.
out much opposition. In that period
the industrial shares gave way 1 to 3
points or more, and rails 1 to 2 points.
After midday there was some resistance
to pressure. which developed into
movement Of fair recovery. Absence Of
buoyancy, however, was the outstand-
ing characteristic, and It was not diff
ficrlt to explain.
The industrial situation In this and
other countries with which the United
states has close commercial relations
in normal times still left q great deal
to be desired. The benefits accruing
from the change in administration can
not be counted upon to become effective
Immediately, Of course, and there are
problems to be solved irrespective of for
ward considerations which cannot be
minimized nor ignored in the glow of a
future hone. With the resumption Of
trading there was nothing whatever to
indicate any ame'ioration in the money
situation. Call loans renewed at o per
cent and the rate advanced to 10 per
cent in the late afternoon as was the
case all last week.
The government continued its de-
mands on the banks for payment Of de-
posits, $4,000 900 being called today and
SO. 900 900 tomorrow. The arrival Of
S14 900 900 in gold was essentially con.
structive, but it has been known for
nearly week that it was coming. After
noon cable advices from London stated
that the coal miners had voted to cal
off their strike and would resume work
tomorrow which contributed to the af-
ternoon rally.
1t was apparent that the bears had
overdone the selling and that, when
they realized the fact and began to
cover, the supply of stocks was found
to be restricted. This was especially
true of the railroad descriptions, which
retracted lost ground more promptly
and with more decision than the others.
Southern Pacific was the sensation of
the market from the beginning, opening
3 points more above the Monday
level. 1t hung fire at around 40
through the forenoon, but past mid
day it spurted forward to above ia,
the movement being based on the de-
cision of the company to part with its
oil properties.
When the advance began on Monday
the shares were selling in the neighbor-
hood of par. Moreover the batch of
September railroad earnings which came
to hand at noon today were particularly
good, Chicago and Northwestern stand
ing out with net gain Of better than
5000, 900. The railroad stocks in gen.
eral responded promptly. Reading ran
to nearly par in short time and the
other rails made corresponding gains.
The industrials were less aggressive, al
though acquitting themselves very we'll
under the circumstances. In view of
the fact that election was over, that
business was likely to get along better
with the campaign turmoil passed away
and the too closely pressed selling of the
forenoon, all served to unite in bringing
about the rise.
1ndustrials did little more in the last
hour than to make good a substantial
portion Of their previous losses, but
the rails went further under the inspir-
ing leadership of Southern Pacific, that
issue effecting a maximum net gain Of
about IL ponts. Reading got as ii II
as lob. There was some easing away
from the top before the closing, but on
the whole values were well sustained.