The New York herald., 1921-03-24
FINANCIAL NEWS
AND COMMENT
Stock Trading Suddenly Wi
dens and Prices Rise Under
Lead Of Motor Shares.

Some explanations Tor yesterday
sudden expansion OF trading and strong
price movement in stocks were to be
found both within the market and out
side Of it. The greater part OF the buy
ing evidently came from a harried short
interest which had calculated that the
reaction OF last week was a fresh stage
in the downward swing, and hence
had been unwilling to accept the mean
Ing of the firm undertone OF quotations
on Monday and Tuesday. But the same
factors which drove in the shorts in
Studebaker, American Woolen, Chand-
Ter Motor Mexican Petroleum, United
States Rubber and Steel were also in
fluendal in stimulating speculative pur-
chases for the rise. To the extent that
covering transactions were forced by
the clearly discernible tendency of
prices. the impulse came from within.
The broader influences OF the days
Improvement, which extended from to
3 and points among the more active
issues, were derived from the recur-
after standing loans had been renewed
at 6b per cent; from additional and
constructive light on the Russian situa-
tion and from scattered evidences OF
Improvement of Industry which had re-
ceived only casual attention amid the
dismal discussions of railroad earnings
and wages of the last three weeks.
The market started off at a pace
which forecast a million share day, and
that total was exceeded by substantial
margin. A lengthy list Of Industrial
shares. notably automobile. rubber, oil
and steel, experienced an insistent de-
mand throughout the morning, and
in the afternoon q number of railway
stocks entered the procession. At its
best price OF the day, Pennsylvania
Railroad displayed a recovery of more
than a point from it's lowest quotation.
although it's net gain was reduced to
fraction by a late decline that af-
fected practically all stocks. Profit
taking was effective in lowering nearly
all prices, but the final array of quo
tations showed much strength.
The comment In banking and broker
age quarters disclosed a keen interest
in foreign trade matters and it was felt
that the position Of Russia was grad
ually being clarified. This was not the
case on the day before nor at any pre-
vious time since news came OF tho Bri-
tish agreement with the Soviet Govern
ment and OF the changed attitude OF the
Soviet leaders toward the workings of
Communism. When Washington des-
patches confirmed reports that the State
Department was considering a proposal
made by Lenine for new trade relations
between the nations. the forward move
ment OF stocks increased and, at the
same time cotton quotations showed
more strength than at any time during
the month to date. Cotton options were
n cent pound higher at the close than
when trading ended on Tuesday.
IT is too early yet to see whether any
thing worth while from the industrial
and commercial standpoint will come
from the Russian advances. Extended
research of the real Soviet intentions
and purposes win be necessary before
manufacturers of goods here can be con-
fident OF tho outlook for trade: but the
stock market is wont to reflect probable
tiles as well as realities. and certainly
significant events are shaping behind
the scenes to cause such changes OF the
Soviet attitude as have become public.
The facts OF domestic business that
have been reflected in the market during
the last few days deal primarily with
the increasing activity of the automobile.
silk and shoe industries. AS far as the
steel industry is concerned. the weekly
reports of yesterday showed that mill
activity was at least no lower than 1t
was in the preceding week, while in
some centres new buying was growing
slowly. Spring building operations are
expanding with a consequent enlarge
ment OF orders for structural material