Evening star., 1921-05-13
SHORTS Covering
CAUSES ADVANCES
No Outside influences, Only
Natural Reaction After Pro.
|onged Selling Movement.
BY q. p, WEST,

NEW YORK May 13.-Having gone
down continuously for almost an en-
tire business week, the stock market
was in shape for a rally today. and
needed no help from the outside news
to bring IT about.
As a matter OF fact. there was ucth-
ing in the news OF the day which
bore. except in a minor way. upon the
movement of prices.
Continued advances in sterling and
continental rates was admitted to he
encouraging in broad view Of InS
outlook for international trade. But
there Is the qualification that Europe
is improving its credit at the eX-
pense of the American foreign trade
and that there seems no Likelihood
OF any change for the better until
the various agencies for promoting
long-term credits to foreign buyers
of American goods begin to function.
The days stock market was governed
chiefly by inside rather than outside
questions. The short interest had
grown considerably since the start of
the week. and prices had got down far
enough to attract some repurchase OF
stocks distributed on the advance Of a
fortnight ago. For these two reasons
the market position has been consider
ably strengthened. and it was this which
Some further weakness occurred at
! the start in few of the highly specu-
lative issues, like Mexican Petroleum
and American Sumatra. But the break
in these stocks served merely to facili-
tate covering purchases in other direc-
tions.
The subsequent advance was proper
toned very closely in extent. according
to the previous activity of bear opera
tions. 1t went furthest in the stocks
Eka the the StpelS and
of the oils. which had been objects OF
short selling on preceding days.
Leather stocks Firmer.
Central Leather was one of the mar
ket leaders and Hide and Leather pre-
| ferred, although not as active in the
| trading. was scarcely less conspicu-
Gus in the rise. The remarkable
change which came over the situation
| in the leather trade since the end of
! the first quarter. has already been
| noted. There was further testimony
! today, in Chicago dispatch to a local
news agency, to the. fact that the
! enormous surplus of hides which
| weighed the market down all through
! the second half of last year has now
disappeared. The new demand is
growing and it is finding the market
comparatively bare of supplies. Hence
| the prices are rising, and companies
| like Central Leather and Hide and
Leather. instead of writing their in
ventories down. will now be writing
them up. A very notable change is
predicted when these two concerns
make public their figures for the sec
| ond quarter.
| Union Oil Higher.
! Union Oil. with two native SON"
associates. California Petroleum and
Pacific Oil. was strong today in spite
of a cut in crude oil prices by the
Standard Oil of California. In the
case of California Petroleum, the rea-
son for it's advance is perfectly plain
This is that the stock is now looking
forward to the declaration of an initial
dividend on the common at the an
nual rate of per cent. Pacific Oil.
it is reported. may be placed on a
81 dividend basis. The strength in
I Union Oil is based on. rumors that
| the company is making some very
| favorable business arrangements.