The New York herald., 1920-12-28
FINANCIAL NEWS
AND COMMENT
Stock Market Movements
Mixed-Shorts Active
Rails Hold Steady.


I terday mainly by internal considera-
tons. the activities of short sellers
/ being effective in depressing few
issues at the same time that others
were advancing irregularly. AS on the
| day before Christmas, the market acted
as though most of the years necessi-
! tous selling had been completed. which
should not be surprising in view of
the shape OF precipitate offerings that
stook small regard OF prices received.
In these last business days OF 1870 there
have appeared, as yet. few signs of the
followers of the market thought a month
ago would follow on the heels OF earlier
selling for the sake of showing on
! income tax statements. Yesterdays s
that of last Friday, when holiday prepa-
rations acted as a drag to trading.
Atlantic. Gulf and West Indies, Cruel
BILE Steel, Mexican Petroleum and New
more than points. seemed to fall
back more because Of paucity of buy
ing orders than by reason of urgent
pressure from those who sold The
steel and rubber issues were inclined
to heaviness. In fact, were weak at
times; but rails held steady and the
rank and file of manufacturing shares
left off with net changes which were
irregularly divided between gains and
recessions.
Considering the influences behind SELL
ing which were outgrowths of the mar
ket Itself. reference should be made tc
the arrangement completed during the
day for removing so-called top heavy
accounts in Replogle Steel shares. 1t
was evident last Friday. when the stock
slumped l31a points, that so thin a de-
mand as then was demonstrated was
disturbing, both to brokers and lenders
of money on collateral. The news yes
terday that the group which had all
along been dominant in the affairs of
the company had taken up some Sc, 600
shares from margined accounts and
locked them away was something of
really constructive moment in 4 mar
ket situation lately spotted with un-
certainties. A quiet period with steady
or firm tone of prices would be well
coined now by all concerned in securi-
ties, in order that such points OF espe-
clal strain as those developed by the
transfer OF large holding OF General
Motors stock some time since and the
gathering together of scattered weak
accounts in other issues might be cor
rected. In fact. not a few competent
observers of market phenomena look
forward to relative duflness next month
which will permit the financial COM
munity to contemplate the application
of legislation now shaping In WASH
-ington. mainly that having to do with
taxation and efforts to finance exports
of American surplus goods David
Houston, Secretary OF the Treasury,
continues to lay emphasis upon the
urgent need OF thoughtful scientific
taxation schedules II the country is to
be saved from an expanding deficit in
the next two years.
Additional statements OF railroad
earnings in November were, like others
previously issued. of slight use in dis
closing railroad results in months 10
/ cofY,a uowavar DaIa uora apd IIydror
Norfolk and Western. the Seaboard Air
Line and several smaller properties re-
! ported sizable increases in both gross
and net incomes. the real significance
of which could better have been ap-
preciated IL 1t had been known how
large were the charge-offs for mainte-
nance and allowances for back wage
accounts.
The foreign exchange market was
mostly local affair in respect to rates
ron western European countries. because
of the lengthy business holiday over
there. Sterling declined from 35lM Ia
3.4sN. Scandinavian rates were firm
and Far Eastern quotations held steady
with last Fridays price front. Call
money was again at per cent all
I day The moderate decline of the Fed
eral Reserve systems ratio of cash to
/ deposit and note liabilities last week
was recognized as the result chiefly OF
| year end expansion of the use of cur
rency and of banking activities In
strengthening their resources. Never
theless. the financial community is con-
tent to wait for an actual easement OF