The New York herald., 1920-12-30
FINANCIAL NEWS
AND COMMENT
All Issues Participate in Stock
Market Advance Led by
Standard Rails.

The record of yesterdays stock mar
kee was one OF vigorous advances. led
by standard railroad issues and partici-
pated in by all classes of shares. In
| bonds on the Stock Exchange the second
largest days business OF tho year wa.
handled. with sufficient demand in evil
dence TO leave corporation paper firm,
while more than s21.000,000 Liberty
with some gains and only moderate
fractional declines scattered through the
several groups. A deduction TO be made
from both the volume OF transactions
and the course of prices in the market
for securities was that buying in antici-
patton of January income receipts had
gained enough force to supplement short
covering to an important degree as a
support TO prices. Quotations left on
at or near their best levels. Call money
remained at per icent., and in the
light OF somewhat increased offerings OF
call and time funds the Street began
to pay attention anew to the possibility
OF easier money next week The refer
ence to money has not the same appli-
cation TO credit for the underlying
structure of long time accommodation
has not changed as yet.
To illustrate the scope and character
of the buying movement one may men
"a of tot tir-a
Northern Pacific, SIS; Reading. 3A ;
New York Central, 2% Chicago. Mil
waulxee and st. Paul, 8 Atchson, 2as ;
Southern Pacific. 27s, and Union Pacif-
ic. rs points. Steel common, with an
upturn of a point, was not as strong
as some of the other steel and produc-
ing company issues, but its steady
strength appeared TO be the chief bull
wark against renewed selling for the
short account, and the ease with which
large offerings were absorbed probably
convinced reluctant shorts In the indus
trial list to tighten their lines. To a
degree the recovery could be explained
by news and events. but what was more
impressive than the response TO favor
able influences, within and without the
market, was the way prices ignored I'M
favorable matters. A certain impetus
through the retirement of short con-
tracts could be looked for. after few
days of relatively quiet and steady deal
ings on the heels of a great decline,
and fair volume of repurchases was to
be expected from persons who had sold
securities in order to record losses. But
the advance yesterday occurred in the
face of rather discouraging information
from the steel industry and a long list
of November railroad income statements
disclosed by no means generally inn
proved profits over the same month last
year. The last week of the year. ac-
I cording 20 the Iron Age and the Iron
! Trade ReUieto, finds independent steel
mills working on no greater scale than
20 to 35 per cent. of capacity, although
the Steel Corporation remains engaged
at or close to the maximum capacity.
True, the week between Christmas and
New Years is normally a period OF
slackened operations. but this year trade
comment shows an absence of orders in
some steel and iron making localities, a
situation that is expected to change in
the next few weeks. although the belief
is expressed that return to activity
appears to be likely only when buyers
believe in the fairness and stability OF
prices.
The days railroad earnings reports.
while spotty in regard to net income
/ from operations, were on the whole to
be considered as constructive. While the
Atchison had an increase Of more than
| s2,700,000 In gross revenue converted
| into a decline of $1.173,00 In net, the
! Missouri Pacific announced gain OF
| sS,7OO.OOO in gross and s2,1s0, 900 in net
| The st. Paul system had n substantial
| expansion OF gross earnings and n mod
crate gain In net, and the Reading came
| through with Si,000,Ooe increase OF
gross and Of S1.7Oo.oOO in operating net
| income.
! The grain market moved abreast OF
! stocks in a sizable advance, but cottor
was again weak and uncertain most OF
/ the day. Sterling exchange gained a
cents to S51Gs. and Acontlnental rates
were nrm II will be interesting &c
trace this market II negotiations from
now on to fund the British demand notes
In the United States Treasury come tc
anything.