The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-24
FINANCIAL NEWS
AND COMMENT
Stock Market Falls Back Into
Trading POsitiOn-Heavy
Realizing Sets In.
MONEY SITUATION EASIER
Decline i'm New Haven Unset
Ting FactOr-0ther Rails
React in sympathy.
MONEY SITUATION EASIER

The stock market. having had very
low points of last week. settled back
Yesterday into trading position TO
digest its new price levels. There was
a further rush to buy stocks at the out
set but that buying was not carried
through the first hour and the result
was that the market met heavy profit
taking. 1t was not enough, however, to
put stocks down any considerable dis
lance, but it did check the advance. and,
with the short interest partially elimi-
mated, the bear fraternity had no diff
Guilty in bringing about very general
declines in some directions. The set
back. however. was only moderate. in
comparison With Mondays recovery,
and no more than might have been ex-
pected in view of the elimination of the
short interest Indeed. considering the
rapidity of the rise. the market as a
whole held up fairly Well under the cir
cumstances.
The only disappointing thing about the
trading was that the market showed
that it was still relying entirely on the
short interest for it's purchasing power,
which was almost entirely responsible
for Mondays rapid recovery. AS soon
as buying OF that character had been
eliminated yesterday It was noticeable
that stocks lost their appearance OF
strength. Realizing and dumping over
Of stocks that had been purchased last
week to support the market had good
deal to do with that weakness, but at
the same time there was a resumption
of the short selling in some directions.
It was particularly noticeable in those
issues which Wall Street still consid-
cred high in comparison with other
listed stocks But although the resump-
ton of selling did not please Wall
Street, there was no reason to believe
that the market was headed for any
thing more than the time honored re-
action which always followed sharp
recoil after a long series of declines
A further unsettling factor in yester-
days market was a sharp decline in
New Haven, following the publication OF
an appeal to the Interstate Commerce
Commission for higher rates. That ap-
peal was so worded that it had a very
effect on the New Haven
stock. which broke about 6 points 1t
had naturally a sympathetic effect on
the other low priced railroad shares, but
nowhere did the decline go as far as il
did in New Haven itself. The rest of
the market, after opening at new highs
for the movement. sold off such issues
as Baldwin. Crucible Steel common and
others cancellng practically all of their
overnight gains and in some instances
slightly more. General Motors and the
other motors shares, however. continued
to improve. The Street continued to
discuss the General Motors deal, where
by the Durant stock was turned over to
the Du Pont and Morgan interests, but
it had no general effect on the list.
Notwithstanding the withdrawal of
S2O,0OO.oOO from the !
banks yesterday the money situation
continued to ease. Call money renewed
at per cent for the first time this fall.
and the rate dropped to per cent later
in the day An even more interesting
development. however. in the money
situation was the drop in the time rate
to IA per cent. That decline marked
the first time that money had loaned at
any such figure this year and is a real
indication that easier money is in sight.
II is possible. bankers say. that Wall
Street may have to go through several
more flurries for instance, on the LIST OF
December and later on during tax pay
ments, but no real trouble is expected
from now on. As a matter OF fact bank
ers expect money to be very easy fol-
lowing the turn OF the year. There was
a reaction in the foreign exchange mar
ket. i'm which indications pointed that
the recovery had been too rapid as in
the share list Sterling lost part OF its
gain "a did the Continental exchanges.