New-York tribune., 1921-01-06
Rift Between
The Public and
Floor Traders
Investment Buying Offsets
Short Selling and Stocks
Turn Irregular; Rally in
Bonds and Exchange

In essence yesterdays fluctuations in
the stock market were the expression
Of conflict between professional
traders and outside speculative invest
ors. The latter continued to come into
the market place as buyers, and their
influence making for higher prices was
strengthened bv further repurchases
of securities by those who had sold out
/ their holdings in December to estab-
! lish tax losses.
In contrast to these fountains of
strength in the market which have
been pushing up both stock and bond
prices for a week were the efforts of
I floor traders and other operators who
speculate for quick turns rather than
for the long pull. Short selling from
these furnished stock to take care Of
all the buying orders, and the net re-
suit of the two-sided character of the
market was an ebb and flow of quota
tions, with no decisive trend in either
direction. Irregularity prevailed, but
traders seemed inclined to believe that
investment buying would subside in
fortnight and that after that for some
time the market would be without the
present buying support which now
buoys up quotations.
In the late hours of trading there
was an upward tendency in the market
and the otfsctting of losses was led by
a sharp rally in the oil and copper
stocks. The rise in the former was
obviously due to short covering after
the sharp break in this group, and the
strength of the copper shares was as
sociated with reports that the copper
i,NA uacfs Co lo-
Of bettering the market position of the
metal.
The continued squirt in the bond
market revealed the activity Of invest
ors, and preferred stocks, too, were
eagerly bought. The Liberty issues
moved higher and the fourth AIS ad-
vanced nearly 81 on $100 bond at the
closing price Of $3.50. Moreover the
3hss moved up to $3.50, also gaining l
per cent.
But tho most striking development
Of the day was not in the security
markets, but in the foreign exchange
firm for more than week, jumped up
to the highest point since last August.
1t gained 9]s cents to the pound, clos
ing at So .65 Il for sight drafts on Lon
don. Though not moving with the
same velocity, rates on Paris, Antwerp,
Rome and Berlin rallied in sympathy.
Bankers disagree in their interpreta-
tion of the cause of the better position
Of sterling, but it seems patent that It
is reflection of the steadily mprov-
ing state of British finances The ne
gotiations to fund the British debt to
the American Treasury constitute
good symptom, and the falling off Of
British purchases in this country is
helping the value of the pound in
terms of the dollar. Although some
exchange experts were skeptical about
the effect of the Congressional action
to revive the War Finance Corporation
on exchange rates, undoubtedly some
operators regarded it as a bull argu-
ment, particularly since the advocates
Of the measure hope that it will re-
/ lieve some of the strain on foreign
buyers who have had to settle for a
large proportion of their purchases in
this country by buying exchange in
the open market.
Better trade reports induced the
bidding up of cotton prices, but grain
prices slumped on reports that Argen-
tine growers had offered shipments to
Germany below the market here.