The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-17
FINANCIAL NEWS
AND COMMENT
Stock Market Recoils Sharply
Again, While Commodities
and Exchanges Recover.
sRALLY NOT MAINTAINED
Copper Shares Are Weak Fea-
ture Of SeSsiOn-Most of
Group at New Lows.

There We're further reassuring signs
in yesterdays financial markets that
the wave OF pessimism which has been
sweeping the Wall Street district was
gradually subsiding. There was an
other sharp recoil in the stock market,
which. while 1t was not fully main
tanned. nevertheless suggested a cessa-
ton OF the short selling for the time
being at least, and on top OF this were
even more emphatic recoveries In the
commodities markets and In foreign ex-
change. The rally in sterling was par
ticularly striking. In the share list
there were still enough weak spots to
be uncovered TO give the general mar
ket an appearance OF irregularity, but
they, however, were mostly special
stocks in which there were Individual
considerations at work to account for
the selling. Still there were enough
such points of weakness to prevent any
material Improvement IN the averages,
which closed virtually at the low Of
the year.
The financial community was natur-
ally very much disappointed again be-
cause not all Of the rally could be
maintained, and 1t was probably dis
appointed also to find no change in the
averages after two successive days of
recovery in the speculative leaders.
But this was easily explained because
OF the continued selling of certain
groups of stocks. Notwithstanding
that disappointment there was a gem
ulne improvement In sentiment through
out the whole district. which was due
in no small part to the recovery In
exchanges. With sterling exchange
again around the $40 level 1t was
considered probable that the danger of
that exchange going through its old
low of last spring had passed for the
time being, the theory being that if II
could rally twice from the low points
OF last week the chances were that 1t
would stabilize itself around present
levels until the trend should turn to-
ward the better, as It is bound to do
when the present seasonal movement
Is over.
As on the preceding day, II was the
copper shares which provided the prin-
cipal features of weakness. Nearly all
stocks in that group recorded new low
records for the year. but even the selling
OF them was not nearly as persistent as
II was on the preceding day. The ship
ping shares, particularly American In
ternatlonal. were also points of weak
ness and there was a fresh outburst of
selling in the motor stocks following the
failure OF General Motors to show any
material rallying power. But against
those weak spots there was genuine
strength in the steel and the oil shares.
Steel common rallied another full point
on top of its gain on Monday. and there
WIS n squirt in the Mexican oils follow
ing the publication OF the story OF the
closing Of large gasolene contract by
the Mexican Petroleum Company. The
orend IN the railroad department was
toward recovery again. with good buy
ing reported In the better grade of
stocks. particularly IN Southern Pacific.
Along with the Improvement in the
stock market came another casing OF tho
money rate. The renewal rate was
dropped TO 8 per cent, against so per
cent. on Monday and por cent last
week. but there was no change from
that figure all day. Notwithstanding
the fact that the rate for rsw loans did
not work easier. az was the case on the
preceding day, there was n genuine feel
ing OF optimism in banking circles con-
corning the future outlook for money,
While the rate In not expected 20 work
materially easier until after tho turn OF
ting year, nevertheless u IL fsit that tho
worst ~ over, excaDt for occasional
flurriss nsxt month with thu payment
OF tha monthly interest and dividend dis
bursenSnts and the last lnstaiment Of
Federal tnxes. There wers Withdrawals
OF approximately 100000 from tho
banks yesterday by the Government, hut
no announcement was meds as 20
eurther Withdrawals this week, II Is
considered unlikely, however, that this
banks will DO called 10 make any further
preparations this week