The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-12
FINANCIAL NEWS
AND COMMENT
Ilregularity Continues TO Fea-
ture Trading in Stock
Market.
MONEY SITUATION EASIER
Marines. Motors, Coppers and
Several Specialties Sue
cumb to Attack.
MONEY SITUATION EASIER

! The chief incident OF importance in
| yesterdays stock market was a continu-
alton of the irregularity that marked
/ " ednesday's session, which was due en-
t'rely to drives on part of traders TO
bring out stocks in the vulnerable spot.
Those tactics We're repeated throughout
yesterdays trading with success in ma
r.nes, motors. coppers and specialties.
but no real impression was made on the
speculative leaders, although 1t was dis
appointing to find so little response to
the lowering of money rates in the flna.
period. The market was much too thin
t. have any significance on the future
II end of prices but il looked on the sur
face as II the various drives and raids
ca stocks We're being conducted by trad
ers solely for the purpose of giving the
general market an appearance of weak
ness in order to facilitate covering of
short contracts in stocks in which the
/ floating supply has become very mucn
reduced.
AS is usual with the first appearance
/ Of weakness following decline Of the
! scope of that of the last week. Their -
I was an immediate revulsion of the hope
sul feeling. The rank and file of the
/ fiji ancial district concluded that II the
rarket could not rally any more than
( it has il was very bad sign indeed, but
actually the market did very well [,
hold its own in the face of the pre-
pcnderance of bearish DEVELOPMENTS.
which included a resumption of the
downward movement in exchanges AMI
another very violent drop in the grain
rrarkets The stock market seemed to
be about the only bright spot Of the
whole financial situation outside of the
cotton market. which had a fuvther re-
cuvery. There was no idea anywhere
that the stock market ought to branch
cut into a bull campaign because the
/ Liquidation had been checked, but It wa,
I the consensus of opinion that for the
time being at least stocks were due for
/ a breathing spell even should substan-
tial rally fail to develop.
1t was a further hopeful sign FOR Wall
! Street to find that there were ready ex-
| plantations to account for such weakness
as did occur. Heretofore stocks have
! gone down with no fresh explanation
whatever. For example. the break in
I WHY'S Overland preferred was explained
/ by report that the company was
( planning new financing TO the extent OF
( $4,000, 900 That report proved without
the slightest foundation, just as did the
/ hundred other rumors that were spread
/ throughout the financial district to de-
press stocks yesterday, but it had its
effects nevertheless. AS is usually the
/ case there were also several stocks that
|. reflected belated liquidation, that is to
say liquidation on the part of people
whose accounts had become so weakened
in the declines this week that it was
necessary to dump over good stocks tc
protect the bad ones. General Electric
was an instance of this kind. making a
new low record In the main, however
the speculative leaders displayed very
! stout resistance throughout. although nc
! less than four separate drives were con-
| Quoted against them.
! AS was foreshadowed on Wednesday
by the dropping of the money rate to pei
cent after the closing the money. situa
|. ton displayed much easier tendency
yesterday. After renewing at per cent
the rate finally dropped back to pei
| cent In the last hour. and il is under
/ stood that even at that figure severa
| millions went unloaned. This was taker
/ to mean that the renewal rate would be
| lowered at the outset to-day, which ii
| true. will mark the first time this month
/ that money has been renewed below
/ per cent Bankers have been expecting
some slight relaxation in money, but the
| fact that IL came yesterday surprised
most interests. The date for easier
money has been set for the first of next
week rather than this week The re-
newed decline was not taken in foreign
exchange circles as indicating neces-
sarily a new downward movement.