The New York herald., 1921-01-07
FINANCIAL NEWS
AND COMMENT
Stock Market Moves Forward
With Strength-FOrei9n
Exchanges React.

Stocks changed their course yesterday
from the tendency OF marked Irregular
ity Of the two preceding sessions and
swung forward with great deal of
strength. While Of highly professional
character. the market acted as though
substantial volume of new purchases
for the rise was vying with short cover
ne 10 swell the turnover to n total
about 30 per cent larger than on
Wednesday Automobile and rubber is
sues stood IN the foreground. with net
gains running from . to more than
points. but there was also steady buying
of Independent steel company shares.
some OF the rails and a broad list OF
miscellaneous rlanufacturinS company
stocks For the first tinc this week the
market for stocks supplied more ma
terial for financial consideration than
the bond and foreign exchange markets.
~lthoueh there was again a heavy de-
mand for Liberty bonds and many cor
norate issues. and the foreign exchanges
attracted interest because of sharp re-
nct.on Call money remained at per
cent
The advance OF stocks. after allowing
for the reversals which have occurred In
day to day dealings in some of the more
speculative issues. has carried many
quotations this week to points above
the last prices of 1920. That much OF
the Improvement has been a natural re-
covery from overdone selling in recent
weeks goes without saying. and for this
reason il is impossible 10 determine the
extent to which a renewed speculative
outlook for permanently higher prices
las counted in the upturn. But one who
talks with bankers and business men
cannot help but be impressed with the
better sentiment arisen since the open
ing OF the year. ard in some quarters K
8 evident that the horizon is being
scanned for signs of growth OF indus
trial activity. which is expected to be
slow and probably not clearly discerni-
BILE for several weeks TO come. IT is be-
ieved rather generally that considerable
liquidation Of Inventories and of farm
products must yet be put through before
a new basis for doing business is ar
rived at \ genuine easement OF money
and credit also depends upon progress
In this direction. One of the factors in
the Industrial situation which is attract
ing favorable attention is the return OF
workers to reorened mills in many parts
of the country at lower wage schedules
than prevailed in the last quarter OF
1890. many reductions being made with
out opposition, il not always with the
consent Of plant employees. Indications
of more satisfactory business situa-
ton later on are revealing themselves
abroad AS we'll as at home. but corser-
vative elements in both business and
finance arc not ready to predict that the
tine is at hand for stocks TO discount
future Improvement, and this explains
belief expressed in Wall Street circles
that irregular price movements are to
be looked for
Sterling exchange advanced about a
cent above Wednesdays last quotation
and then retreated abruptly. The rise
Of i5 cents to the pound in three days
brought out heavy offerings of COM
mercia bills and il was probable that
many speculative buyers at London and
New York on Monday and Tuesday
realized profits on q broad scale. The
rate declined from a maximum of 3.66
for sight drafts TO 3.60s.. leaving off
with q new recession OF AZ points.
which removed little less than half of
Wednesdays advance. The undertone
of the market. however. was reported
firm and bankers are awaiting with
great deal Of interest tho efforts being
put forth TO acquire Government finan-
cial support for British exporters, and
also the negotiations at Washington
for funding .hc British loans made by
the United States Treasury. Continental
rates essed off with sterling.
Cotton again moved forward and wheat
futures at Chicago advanced 3 to si4
cents a bushel. The rise OF grain ap-
peared to be directed in part by sub
stsntial buying for export.