The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-23
FINANCIAL NEWS
AND COMMENT
Stock Market Has Better Tone,
but Weak Spots Cause Sew
eral New Lows.

The tone of stock market prices was
measurably improved yesterday as COM
pared with that of Tuesday, although
weakness in particular directions brought
several new low records. and the final
array OF quotations disclosed much ir-
regularity. Doubtless. considerable short
covering went on throughout the session.
In the early afternoon wave of new
selling carried the industrial issues off
from the best levels established during
the morning, but this soon came to ar
end and the market closed in the midst
of rally. Atchison, Chicago. Rock ISL
and and Pacific. Lehigh Valley and
Union Pacific were conspicuous among
the railroad shares, with gains extend
ing from to more than 2 points. Stocks
to leave off lower than the day before
were not comprised in definite groups.
for while one or two rubber issues de-
clined others gained ground, and re-
action Of Baldwin Locomotive was not
equipment shares. The market was
about what one would expect the day
after a severe break. which gave earlier
short sellers opportunity to convert
large paper profits into cash. and which.
presumably. saw the completion of much
liquidation that had been postponed from
day to day.
The failure Of another Stock Exchange
low Oh IN
and played a part IN quickening the
nervousness instilled into the market by
the prolonged decline of prices. The
suspension of the house appeared to be
reflected In rather sharp declines of one
or two stocks which lent themselves to
successful pool operations earlier in the
year; but 1t speaks well for the under
lying strength Of the brokerage business
that neither of these failures has i'm
paired the confidence of the financial
community in general conditions as af-
fecting the machinery for trading In
securities. The day was marked by no
new developments within the markets,
but, by the same token, there was also
nothing new which could be interpreted
as O forecast of betterment in the near
future.
The weekly surveys of iron and steel
confirmed and enlarged previous reports
Of wage reductions among independent
producers. A fair amount of rail and
car orders have been coming forward
but it is significant OF the current situa.
ton in the industry to note the sugges.
ton by the Iron Age that "the whole
! scale of railroad buying, apart from
rails, shows that the steel industry's ex
pectations of what would come from
increased freights were far too optimis
tic" The processes, now under way
among the smaller producers to get cost.
down Is not at all surprising in the ligh
OF similar efforts among other manu-
facturers, and because OF estimates tina
while the Steel Corporations mills ar.
being operated from s5 to 30 per cent
Of capacity. the operations elsewhere ruiz
irregularly from 40 to 40 per cent
Liquidation continued in cotton, carry
Ing the December, January and Marcel
options under the Ia cent level for th'
first time In nearly four years. In grair
futures prices continued Tuesdays de
cline further. the recession amounting I,
1 u and . cents for wheat. 1t Is be
coming problematical whether the ac
tivities of spectators for the decline ar,
as much OF an influence in these mar
kets as a fortnight ago, for the move
ment in cotton especially has reached
stage where, under normal conditions
traders would be chary of selling into
brisk rally.
Liberty bonds. which left off the da,
before with moderate rally, which
through error, was not noted in thi
comment on Tuesday. turned irregula
and were less active. Sterling exchang
turned about, regaining all of its declin
In the preceding session, with a fina
rate Of S.5294 for checks. The other ex
changes were firm. Call money stood a
per cent. during the full borrowing
period. although no greater significanc
could be attached to this than to the per
sistence of the same rate during most o
last week. The course of money mex
| month ic pot Indicated vat