Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-11
SHOWS RECOVER|ES
| ON SHORT COVERING
Better Foreign News Brings
First Real Recovery for
Many Days.
BY STUART p. WEST.

| 10 1dlleQ TO count against Tic uoou
of liquidation partly compulsory and
| incident to the credit tension and
| partly the voluntary sacrifice OF
| speculative lines where the holders
were intimidated and disheartened
the Russian-Polsh crisis furnishing the
last straw
| There was no great amount of fresh
| buying. The advance in prices was
due chiefly to short covering. induced
by the overnight developments in the
! foreign news. Only partial version
i of the Lloyd George speech on the
| Polish situation was available yes
| terlay. The full text confirmed the
open breach between Russia and
Great Britain would be avoided.
On the other hand. the reported
intention of the French government
to play lone hand by recognizing
Gen. Wrangle and refusing negotia-
tionS with the soviet emissarleS to
London somewhat took the edge off
the better feeling.
Sharp Upturn.
The first response in all the markets
was a sharp recoil from the prevail
ing tendencies of previous days
Sterling exchange opened at 1854 and
went to 1864, at which figure it
was up cents from Mondays low,
nearly 10 cents from last weeks bot
tom and within 21a cents of the ex-
IRENE high reached in the recovery
toward the close of last week.
Other exchanges were up in pro-
portion. Speculative wheat options
were irregularly lower. cotton OPP
tions higher. both of these markets
reversing to some extent their pre-
vious attitude toward the European
political Crisis.
The opening rise in stocks was
rather striking; it carried prices back
over all the ground lost on yester-
day and Monday and did so at single
bound. Yet it was not contenoeo tnae
the upward turn was more than a re-
bound in an oVersold markeI ne
short covering halted after the nrst
two hours and prices came OH a plt-
But there was no abatement In the
markets better tone.
stocks Rally Well.
From a technical standpoint the
market yesterday, and sui more ~
day, behaved most encourag1ngly. IN
the first place, taking YESTERDAY
trading, the volume for the nrst tine
declined.
This is an infallible sign that hqul-
dation has slowed down and that
whatever downward tendency per-
sists has become entirely dependent
upon the activities of short sellers.
In the second place, the uncovering
of weak spots among indlvidual
stocks did not, as it has right along.
provoke selling in other quarters.
The general market yesterdiaay
showed itself Indifferent to the RAID,
ing of the sugars, the tobaccos, United
States Rubber and one or two other
groups.
This morning the impressive fea-
ture was that these weak points OF
the previous day were Immediately
obliterated.
A Quick Recovery.
The entire loss that it had taken
the bears five hours to bring about
rubbers was restored at one bound
right at the opening. Those who had
taken the bear side had had no pos
Sible chance to cover except at q
considerable loss. 1t was proof
that bear selling and not real liqui-
dation was back of whatever weak
ness there had been yesterday, and
the inference was generally accept
ed that the liquidating movement
which has been in progress with very
little interruption for nearly month
had run it's course.
Some Things Talked OF.
The unusual activity at rising
with the reports of the formation Of
new pool to exploit the greatly inn
proved earnings position of the COM
pany. This was disclosed in the re-
Gently published statement for the
quarter, during which IS cents share
was earned on the stock, as against
only 2 cents in the same period last
year. In connection with the strength
in Texas Company, which has offered
the best resistance of any oil stock dur
ing the market Of the last week, 1t Is
said that an increase in the dividend
is likely to come at the next meeting.
The Curb Market.
For the first time in several weeks
insiders in a number Of issues showed
some confidence by putting buying or
ders in their favorites, and as a re-
the curb market today and advances
ranging from fractions to several
points were recorded.
The inside buying started with the
opening Of business and resulted in
causing a movement among shorts to
cover. so that the demand was consid-
ably in excess of the supply. Quite
few houses also reported buying or
Gers from outside sources in several
issues which declined sharply re-
Gently. hl'x
OF shares as a rule, were higher.
Simms was one Of the features. scoring
a substantial advance from its lowest
at the opening, with the buying gen.
orally being credited to inside in
terests There was also fair demand
for White which rose sharp frac-
ton.
Support was in evidence in number
of issues, including International Pc
troleum, Tropical. Salt Creek. Carib
Syndicate and others, Ryan CONSOLE
dated, an exception, being heavy.
steady tone was displayed in the So
called standard oil issues.
Aetna Explosives was the leader in
the miscellaneous department, scor-
ing a sharp advance on good gen.
eral demand. General Asphalt rose
several points. There was support in
Retail Candy, which advanced a sub
stantial fraction. but Sweets continued.
under pressure, breaking to a new low
record.
The mining group showed moderate
activity in spots and prices were
higher. The bond list was irregular.
United States Rubber 1ks were weak