The New York herald., 1920-01-23
OIL SHARES ARE
STRONG FEATURE
Bears Become Uneasy Over
Greater Resistance They
Encounter.
RAIL SHARES ACT WELL
Rumors of Discount Rate Increase
DiScredited by Most Specu-
latorS at Board.
RAIL SHARES ACT WELL

The stock market yesterday was unable
to shake off the apathy which had char
acterized it for the last few days. At the
close Of the session it was still waiting,
Micawber-like. in more senses than one,
for something TO turn up" Whether II
will remain in that condition today, fol-
lowing the sensational advance in discount
rates announced by the Federal Reserve
Bank after the close OF the exchange yes
terday. remains to be seen.
In brief, II is question whether the
market had discounted such a drastic in
crease in money rates. rumors of which
had been in circulation since last weeks
meeting of the directors of the Federal
Reserve Bank. Although news of the
coming announcement leaked to the stock
market about twenty minutes prior to the
close thereof the sceptical majority Of
traders apparently regarded it as a cry of
wolf" Some quick selling in the last
quarter of an hour however, indicated
that some of the sharper spectators had
given credence to the report. That selling,
when other traders were covering for the
day, caused the irregularity in the final
price movements.
Apart from that incident the market was
another of the contract swapping af-
fairs which had prevailed since the be-
ginning of the week At the opening the
usual scattered buying orders from those
sources in which the belief is indestructi-
bic that January is a bargain counter
month advanced prices in various quar-
ters With the exhaustion of that demand,
however, professional traders resumed
their probing for soft spots. Those places,
however, were not so vulnerable as here
tofore The resistance encountered rem
dered the bears apprehensive. Although
for the most part they maintained their
positions they were cautious and restless.
Rumors of a compromise in the United
States Senate on the much debated Arti-
Gle X of the peace treaty with Germany
and limitations that a settlement also
was near on the railroad question in
creased their anxiety, which. however,
was alleviatcd by reports that banks
were refusing to renew time loans and
that the quarterly report of the United
States Steel Corporation. due next Tues
day, would he poor because OF thc strike
and of the labor shortage experienced in
the last three months
Virtually the only strong spots on the
list were the Mexican oils. Those issues
were advanced by the po5ls and banking;
cliques behind them because of the re-
versal OF the attitude of President Car
ranza toward tie drilling of new wells by
foreigners.
Steels again stubbornly resisted all at
tacks. and one or two specialties. like
American LinSced. advanced for reasons
peculiar to themselves.
Rails acted better on the strength or The
lefore mentioned rumor of favorable
tiogress i'm Washington on the proposed
trislation affecting them and Of the elm
ildtion Of Section from the Cummins
tnl. That clause provides for fixed re-
tMn and stipn!ates that excess profits
rev lrt back to the government. The larger
reals strongly opposed the provision; the
so-calicd weaker lines favored II.
Summing up the market, IL was purely
perfrnctory. with transactions for the
ncs, part restricted to 100 share lots, exc
luted for and on behalf of inconsequen-
dial spectators on the floor of the ex-
ahange.
Money ruled at per cent all through
the session. Foreign exchange, after de-
olining to new low levels, rallied at the
close W the regular hours of business on
cover ng operations by bear spectators.
Gen 81 plly II closed with net gains as com
pared with Wedne sdays quotations.