New-York tribune., 1920-05-27
Further Recovery
Made by Stocks
In Dull Market
Slackening of Demand for
1ndustrials Forces Prices
Back; Talk of Pool For.
nations Is Re sum d

Further progress toward recovery
was made in the Wall Street stock
market yesterday, but the movement
lacked the momentum of the preced-
ing day. The professional traders
continued in the early dealings. the
covering operations begun on Tuesday,
forcing many industrial shares to
higher levels, but with the slackening
of the demand for stocks from this
quarter the market settled back. clos
ing with an irregular range of
prices.
The better feeling engendered by
played by the market and the more
optimistic views taken of the general
credit situation by leading bankers
continued in evidence throughout the
session. Moreover, the fact that
Stock Exchange borrowers are finding
it possible to cover their day to day
money needs at 6 per cent with slight
ly liberal offerings of time funds
helped to make for increasing cheer
fulness.
Around the Street yesterday for the
first time in a fortnight or more could
be heard talk of the resumption Of
pool operations in individual stocks.
This in itself was indicative of a
cent sharp decline speculative pools
Jared badly and generally were forced
to retire from the field. The fact
that new pools are in process of or
ganization would suggest belief in
certain quarters that the time is again
propitious for constructive operations.
In yesterdays markets the steels,
oils and coppers were among the
leaders on the early recovery. Crucible
Steel stood out prominently through
out the session, while among the oils
the Mexican issues easily held the
center of the stage until it sold off in
the late afternoon. Middle States
Oil, one of the newer oil shares, was
under special pressure, breaking to a
new low for the movement. Railway
shares more than held their own on
quiet buying, based upon the belief in
a favorable outcome of the move for
increased freight rates. The Street
is talking confidently of rs per cent
increase in rates and some of the
more optimistic in the community
even predict 35 per cent.
One of the things that have without
a doubt had a most reassuring effect
upon sentiment generally is the con-
tinued Improvement in the United
States government war bonds. These
issues went 1urCner IN tnelr recovery
yesterday and are now getting back
to the level from which they started
on their sensational decline of last
week The recovery has been due to
two causes-the cessation Of selling by
corporations and individuals and the
steady influx of buying orders from in
vestors who finally came to a realiza-
tion of the extraordinary investm ment
opportunity offered.
Further striking movements oc-
CURED in the foreign exchange mar
ket, with the rate on Paris climbing
to a new high for the year. Rates on
London and Rome were also higher,
although they yielded before the close.
Probably the most interesting move
ment is that in German marks, which,
continuing the recovery begun few
days ago, mounted to the highest level
since last November. Marks are now
worth better than 3 cents in the New
York market, whereas at their bottom
valuation earlier this year they could
be bought for less than cent.
The significance of the movement in
favor of Berlin is that it no doubt is
reflection of improved economic con-
ditions in Germany, although nothing
has yet appeared in the news to bear
this out The exchange markets are
extremely sensitive and, like the stock
market. often discount developments
by many months.