New-York tribune., 1920-12-24
Form Reversal
In Stocks as
Pressure Lifts
Impressive Recovery Made
Without Change in News;
Substantial Gains in
Many Issues Are Shown

The pendulum swung back in the
stock and commodity markets yester-
day, where prices rose in striking fash
ion. Speculative securities rebounded
violently, cotton recovered much of the
ground lost on Wednesday and wheat
prices mounted. The reversal in form
was most striking and impressive, and
it occurred without any important
change in the news.
So far as Wall Street was concerned,
there appeared to be no special reason
Why people who sold stocks the day be-
fore should buy them back yesterday,
hut that was about what happened. As
q result sentiment was much more
cheerful, as usually IS the case when
prices are rising, even though funda-
mental conditions affecting business
snd industry have undergone little
change.
In the stock market the recovery was
almost as sensational and pronounced
as was the sharp break the day before.
Starting out with a firm tone, with no
evidences of further liquidation. tAcks
began to creep forward, and it was not
long before many issues showed sub
stantial gains. The strength was we'll
maintained right to the close, and at
the finish standard stocks showed net
gains running from to points, with
the industrials showing the most ex-
tended recovery.
The pressure Of short selling and
forced liquidation which worked havoc
with the price list on Wednesday ap-
IN hOxr ,1o@o ~
overnight. 1t was only natural that the
professional bears should become
nervous over the better tone displayed
by the market at the outset, and as the
list continued to exhibit firmness short
covering became general. At times the
buying movement became so pro-
nounced in many issues as to resemble
a bear panic.
Action of the standard industrials
was an encouraging feature of the days
market developments. Steel common,
which had fallen to 1914 on the break
earlier in the week, rallied to 1874 yes
terday, and closed showing net gain
Of 2Ss points. The other steel issues
also enjoyed vigorous recoveries, and
the movement in this G. CUP was prob
ably helped along by the announcement
that the, Pennsylvania Railroad has
rails for 1921 delivery at SAT q ton, the
order being divided between the United
States Steel Corporation and the in
dependent steel manufacturers This
was looked upon as an important con-
structive development. The unfavor-
able position of the cooper mining com
panies was emphasized by the passing
Of the regular dividends by the In
spiration and Greene Cananea COM
panies, but this action had been an
t'cipated and discounted by the mar
ket.
The Treasury withdrew s31 900 900
from the local banks yesterday, but the
money market was not outwardly af-
fected, and borrowers at the Stock En-
change found a plentiful supply of call
money available at per cent. In the
foreign exchange market rates main
tanned firm tone, and rates on London
rose rather sharply for time. The
weekly statement of the Bank Of Eng
land excited much interest, in view Of
the fact that its ratio of reserves to
liabilities fell this week to new low
record of 7.76 per cent. The previous
low record was made three weeks ago,
at 7.790 per cent. The English bank In
creased its gold holdings, but circula-
i'gn expanded and deposits we're larger.