The New York herald., 1920-01-29
STOCK MARKET
NEWSANDREVIEW
Shares Close Fairly Steady
After Reaction in the Late
Trading.
MONEY AGAIN BIG FACTOR
Elimination of Smaller Bears in Re.
cent Covering Changes the
Technical Position.
MONEY AGAIN BIG FACTOR

Stocks generally were firm yesterday
although they were inclined to sell off in
the late afternoon, because of sharp ad-
vance in the rate OF call funds and ow-
ing TO dispatches from Washington in
which fear was expressed of further de-
lay over the ratification OF peace IL the
bipartisan committee should end Its meet
ing to-day without action. A further
sharp depreciation in allied exchange did
not tend TO increase confidence. In brief,
although the stock market in the last few
DAYS had apparently ignored unfavorable
factors it was quite sensitive 10 them
yesterday. The technical position had been
weakened as an outcome of the covering
movement which had been started at the
end of last week and had been continued
steadily throughout the first two days of
this week. In that movement the light
waisted short interest had been pretty
well eliminated. While the more power
ful element Of that side Of the market
therefore is carrying on confidently, the
condition OF affairs has been changed.
In such circumstances news develop
ments exercised much greater influence
than they had done when timid shorts
alarmed by the fact that no more liquida-
ton could be forced at the moment, pro-
ceeded to close their contracts somewhat
hurriedly. The movement Of prices which
had been upward at the opening. thanks
TO the agreeable surprise furnished by the
quarterly report OF the United States Steel
Corporation. turned downward to the
afternoon. following a sudden advance to
IA per cent in the rate for call loans.
That advance was the outcome OF prep
erations by the various banking institu-
tions in connection with government ex-
pendtures. While an easier tendency of
money in the last half hour was resposi-
BILE for rally, the major portion of the
list showed concessions at the close. The
tone OF the final trading, however, was
steady.
Professionals again dominated the mar
ket. The volume of business was compara-
lively small On the other hand there were
signs of constructive action in certain
quarters, in which powerful financial
cliques are interested. Rumors are in cir
culation again that the decision of the
united states supreme court on the uueS-
Ton Of the taxability of stock dividends
is to be announced on Monday and that
it will be favorable Corporations, how
ever which have determined to distribute
accumulated profits appear TO have found
a way to carry out their programme with
out respect to the tax law.
The decline yesterday afternoon started
in the oils Traders found Middle States
Oil an exceptionally vulnerable subjgct
for bearish operations They offered it
down freely, causing break of almost
six points. Other oils, like Mexican Pc
troleum and Texas Company, as well as
lower priced issues were affected thereby
From the oils the selling spread to other
parts Of the list, with stocks that had
been strongest in the morning proving the
most susceptible to attack. Republic Steel,
Crulcble. Baldwin, American Woollen and
other specialtes declined one to two points.
United States Steel itself sold off from its
best price of the forenoon.
Here and there a few issues stood up
under the hammering. International Pa
per was one That stock reached a new
high level. Foreign oils also were firm.
Royal Dutch and Shell Transport were
bought for foreign account
Sterling exchange broke in an alarming
manner. IT is an interesting fact that
sterling has been declining sharply since
the London Times published an article in
which 1t was said that the last British loan
in this market had barely escaped failure.
That revelation was followed by a scram-
bic by British commercial interests for
dollar credits here.