New-York tribune., 1920-09-04
Sharp Recovery
In Industrials
AS Week Closes
Oil Shares Take Market
Leadership Away From
Rails; Specialties Strong;
French Loan Is Coming

Speculative interest after focusing
for several days upon the railway
shares with generally favorable re-
suits shifted yesterday in the in
dustrial group which heretofore has
been somewhat laggard and not at all
impressive. But on q rising scale of
activity this part Of the market en-
joyed a we'll sustained recovery which
lately under pressure, running for
ward to points and more.
There were evidences late Thursday
that the bear party had decided, in
view of the change in sentiment
brought about by the Improvement in
the rails, that the time was not pro-
pltious for pushing operations for the
decline. This was even moro evident
yesterday. Encouraged by an abun-
dant supply of call money at 6 per
cent. the professionals took up def
mite position on the long side, and the
buying of the industrials to all ap-
pearances seemed to represent some
thing more substantial than short COW
ering.
With the revival Of activity in the
industrials the rail shares were much
less prominent, althousA prices were
as a rule we'll maintained, indicating
no desire to sell on the part of traders
who had bought at lower levels. One
might have expected, in view Of the
fact that the market will be closed
until Tuesday, that a good deal of
profittaking would make it's appear
ance, but such offerings we're more
than Offset by the increased demand.
In the industrial department stocks
Beet Sugar, Vanadium, Replogle Steel,
Corn Products, Strombcrg Carburetor
and international Motor rose buoy
antly at times. holding their gains to
the close. The most conspicuous
group, however, was that comprising
the oils, in which the turnover was
heavy and which advanced sharply.
Mexican Petroleum and Pan-American
Petroleum issues were especially
the fight between two groups of
American oil producing interests in
Mexico over oil land titles is in a
fair way toward an amicable settle
ment. Elsewhere in the oil list sub
stantial advances we're scored, with
Transcontinental gaining more than Q
Pacific Coal & p5' Oil 5is and T. snelaiT nehaT
~. In certain of these issues it
looked as if there had been a resump-
tion of pool operations.
Two explanations are being offered
for the general improvement in
stocks. One is that the more hope
full outlook for the railroads, conf
dence on the part of the bankers in
the fundamental soundness of the
credit situation and the impending in
fux of seo.o0o,o0O to $50 100000 in
French gold have combined to bring
about partial revival of confidencc
in current security values. The other
explanation is that the movement to-
ward recovery is being encouraged in
order to facilitate the fotation of the
new French government loan of $780,
100000 to be announced and offered
to the American investment public
next week.
Call money was fairly plentiful at
s per cent yesterday after renewals
had been arranged on 7 per cent
basis. This represented a. reduction of
1 per cent in the renewal rate. Brokers
reported some further offerings of
time money for short periods at 81
per cent. The amount Of such funds
placed, however, was small and not
especially significant.