The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-04
FINANCIAL NEWS
AND COMMENT
Speciality Shares Continue to
Feature Market-NO GEN
eral Rally.
GAIN Is NOT MAINTAINED
Southern Pacific Is Strong and
Buying Movement in Read
ing Appears.
GAIN Is NOT MAINTAINED

Yesterdays stock market was still pri-
niarily speciality affair, despite Tues
days sweeping Republican victory in the
elections. Whatever rally occurred was
in no way general, but there were two
or three very consistently strong spots.
such as for instance Southern Pacific,
whose rise reflected special considera-
tons. and several other individual is
sues, in which the trend was against
the rest of the market because OF the
overorowded position OF the short in
terest. This did not mean OF course that
the election did not please the rank and
file of the financial district nor that
Wall Street had failed to grasp the
significance OF Tuesdays result at the
polls. but simply that the Street was
still engaged in the task OF readjusting
security prices to conform with what IS
taking place in the trade situation with
respect to the price cutting campaign
that is sweeping the country.
The principal reason why the financial
community did not pay more attention
10 the election. aside from the fact that
It Is engaged in readjusting itself to new
conditions. was that the result was In
no way surprising. The election betting
had clearly shown the result as had the
Maine election early in the fall. II was
therefore. reasonable to have expected
that If there was going to be any elec-
tion rise, It would have occurred at the
time of the Maine election and not after
the affair had actually taken place
Nevertheless 1t was disappointing to the
average trader not to find more response
in the market but in this respect the
market ran true to form by selling off
on the good news. Where prices were
able to hold up or do better. Il was q
case OF special considerations: OF In
dividual developments working which
had no bearing whatever on the general
run of leading speculative stocks.
While the weakness OF the general
list was not pronounced, the trend in
30 far as Industrial stocks were con-
cerned was distinctly downward. The
downward movement was not empha-
sized as much as II had been on pre-
vious days. however, for the reason
that the strength OF two stocks, notably
Southern Pacific and Reading, offset
the weakness. The sudden announce
ment at the close of Mondays trading
of the decision to separate Southern
Pacific's oil and railroad properties led
to a wild scramble TO buy the stock
at the outset and this buying continued
persistently to the close. with the stock
showing nearly 10 points net gain for
the day. The rise in this stock was
also primarily responsible for the SINH
lar movement in Reading, as It re-
minded traders of the fact that the
plan for the separation OF Readings
coal and railroad properties would be
announced shortly. In so far as the
rest of the market was concerned the
movement was very irregular. but there
were few stocks that were carried
upward toward the closing by South
ern Pacific and Reading. Such gains
were not fully maintained. however.
The money market was u trifle easier,
in that the rate did not get to 10 per
cent as was the case all last week,
but there was not very much encour-
agement In this. The renewal rate was
still held at 8 per cent. and any hope
of lower rates, at least for the day, was
dissipated by the announcement that
the Government will withdraw 100000
from the banks to-day. These arrange
ments had to be made yesterday and
naturally held money firm. There Is
hope. however, in banking quarters
that money may work easier by the
last hour of to-day's trading, but no
general ease Is expected for the rest
OF the month. November Is always a
tight money market month, and no one
who is acquainted with the present
situation expects any material change
until the interest and dividend disburse-
ments at the end OF the month have
been completed.