The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-20
FINANCIAL NEWS
AND COMMENT
Stock Market Trading Quicter
and Prices Generally Tend
to Be ReactiOnary.
SUGARS FEATURE SESSION
Foreign Exchange Breaks
Sharply-Momy Situation
Is Unchanged.
SUGARS FEATURE SESSION

The stock market underwent no spe-
cial change yesterday from Mondays
session. If anything the trading was
quieter The general tendency of prices
continued to be reactionary. that is to
say in so far as special stocks were con-
cerned. but aside from such special
stocks the market as a whole was dis
posed TO give a good account of itself
again. considering the unfavorable news
developments with which it was con-
fronted There was a further sharp
break in the foreign exchange market.
the first one that has really had much
bearing on the British miners strike.
The news of the strike itself was any
thing but encourag ing. The market.
however. held fairly well. and some
stocks. such as for instance the sugars,
were disposed to go against the rest OF
the lis. in the afternoon. The general
run OF speculative leaders did not do
much in either direction. but 1t was sig
nificant that they did not go down In
view of the news.
To all outward appearances the market
seemed to have settled down into a trad
ing rut to await developments that may
be expected to start it tsoing In one d.
rection or the other. That the chances
are that when ii does move the trend
will be upward again was indicated by
the manner in which stocks held In the
various drives conducted by the bear
contingent No less than four separate
attempts were made during the day. but
every time traders failed to bring out
real long stocks or to attract a following
It was a case of the market having be-
come oversold, and IT appeared, further
more that that position was becoming
more overcrowded with every attempt on
the special stocks. In certain directions
some progress was recorded on the down
side but it occurred only in the case of
special and individual shares which Rave
not had sufficient reimbursement to bring
them III line with the rest of the market
The sugar shares were the outstanding
| feature OF the trading. with fair adj
vances In all groups following the turn
ing upward of the price of raw sugars.
The most spectacular advance occurred
in United Fruit which has come to be
classed as a sugar stock and is ex-
pected to benefit shortly by the an
nouncement of the long expected extra
dividend. Stocks of the type of Steel
common and Baldwin, while they did
not get anywhere during the trading.
nevertheless held their ground extremely
well in the face of the unfavorable
news. There was a. further drive in
Times Square Auto Supply and the oils
were sold early in the session. But
after they had been driven downward
about half a point or so they rallied
under leadership of Mexican Petroleum
The motors were also inclined to be
heavy, with selling in Willys-Overland
preferred and common. but Chandler. on
the other hand, held Arm. making some
progress on the day as whole. The
independent steels were helped by the
expectation that Republics quarterly
statement to be issued shortly, will be
very favorable.
There was no change whatever In the
money situation, which was rather re-
markable in view of the fact that the
Government Withdraw approximately
$50 QO0,0 from the banks Such a
withdrawal ordinarily would have
caused a wide fiuctuation in the call
money rate. but yesterdays market did
not feel the withdrawals In the least
AS a matter of fact money loaned down
to per cent at the close. The action
of the money market in the face of the
Withdrawals was regarded again as in
dicating definitely that the money situ-
alton had finally turned the corner. 1t
is further anticipated from the action
of the money market yesterday that
there will be very significant i'm
provement shown In Saturdays bank
statement Altogether there was an
Improvement in the money situation ut
the end Of last week. but 1t came too
late to be reflected in the statement,
and IL Is expected. therefore, that II
will be shown in Saturdays statement.
Sterling exchange got down to approx
imately $40 at the start, which Is the
lowest to which II has gone In month,
but there was a rally in the last hour.