New-York tribune., 1920-03-26
tock Prices
Soar as Demand
Becomes Urgent
Rebound Toward End of
Session Featured by Sen.
sational Movement of
Strom b e rg Carburetor

otock market prices, particularly In
the case of the fast moving indus
trials, underwent remarkable rever-
sal in form in the closing hour yes
terday, when prices sufged upward in
response to buying that appeared to
be Of extremely urgent character. The
movement had the appearance of an
oversold market rebounding on the
| covering operations of an extended
short interest.
The sudden and striking right about
face in the trend of speculative val
ues after the market had pursued an
uneven and hesitating trend in the
fore part Of the day, following the Sc
we're recession of Wednesday, coincid-
ed with a jump in sterling exchange
rates to the highest point reached to
date on the recovery from the low
of $3.18 established earlier in the
year. The pound sterling at the top
yesterday was worth more than $3.87,
representing at this level a recovery
of nearly 70 cents from its low record.
The action of stocks in coming back
with such display of vigor in the
late trading suggested in the light of
developments in the foreign exchange
market brought a revival Of reports of
impending gold imports from England
The financial community heard in
vague rumors in circulation in the
afternoon that large shipment was
close at hand and might be announced
before the end of the week. A loss
of $12,500,000 in the gold holdiegs of
the Bank of England, disclosed in the
weekly statement, was thought in
some quarters to reflect Withdrawals
Whatever the basis of the reports of
gold imports, they certainly played
an important role in the stock market
and served to hurry the covering op-
erations of the professional shorts.
For the great part of the stock mar
ket session the trading element
showed itself to be worrying over the
new turn taken by the money market.
Dealings in the forenoon we're con-
Quoted rather cautiously, with the pro-
fessional traders continuing their raid
ing recessions that pushed many of
the leading issues below the levels es
tablished the preceding day. General
Motors, the spectacular feature for
several days past, continued in the lime
light 1t broke to $50 on the fore
noon dip, but on the afternoon rise
advanced to 385.
The sensation of the day, however,
was supplied by Stromberg Carburetor,
which shot out ahead of the whole in
dustrial group, advancing by leaps and
high Of 94. 1t closed II points up, at SO
Stromberg's extraordinary performance,
which was plainly the result of manipu-
lative effort in stock in which the float
ing supply is extremely small touched
Off a general covering movement that
extended to all parts of the industrial
department. And when Steel common
Joined in the rise, that simply added
to the troubles of the bear element.
Other strong spots on the rally were
Baldwin Locomotive, Republic Steel,
troleum and Bosch Magnetic.
Copper and smelling shares consti-
tuted a strong group. There was active
buying of these issues in the after
noon. The striking statement made by
John D. Ryan, head of the Copper Ex-
port Association, to the effect that do
mcstic consumption in the last hale of
1919 was greater than the total world
consumption in the best pre-war years,
the market. 1t gives an entirely diff
ferent side of the picture from what
Wall Street has been seeing for many
months.
A lack of credit hampered specula-
tive operations most of the session.
In view of the shortage in the supply
of money-call loans renewed at 8 per
cent, and the rate rose to II per cent
later in the day-the comeback in
stock prices was especially interesting.
Bankers continued to hold to the posi-
tion that supplies of credit are not
likely to increase since country banks
are beginning to draw down their bal
ances at this center in preparation for
the seasonal demands Of agriculture.