Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-10
SHARP REVERSAL
IN MARKET FORM
Bears Control in Early Hour,
Forcing Serious
Losses.

NEW YORK. January 1O.-The bears
were early busy on Wall street. using
as their chief weapons Atlantic Guf
Sears. Roebuck & Co. and Mexican
Petroleum.. clubs that seem available
Whenever the bears undertake "a
drive back prices.
AS the session wore on their drives
for profits continued undated and
losses in the leading weak spots were
materially extended. while here and
there the losses extended from a
point to 3ls points on the average.
with Atlantic Gulf showing 6-point
drop. and Sears. Roebuck APPOINT
decline.
Crucible and Republic. lost 2 to p.
and Vanadium and Bethlehem about a
point. while , points covered the
loss in Mexican Petroleum.. Royal
Dutch and some of the motor shares.
The statement of sunfilled orders of
the Steel Corporation did not help mat
tiers, but the strength of sterling ex-
change. when it reached the highest
point since last summer. $3.67 on the
pound. gave some announcement.
All this time Steel common positive
ly refused to go down. holding steadiiy
within g of a point.
Confidence Returns.
Without any definite reason. but with
the first signs of shorts trying to re-
cover, the market reversed itself very
sharply. surprising it's friends by the
show of strength.
Even the weaklings of the morning
came back strong. Atlantic Gulf max
ing a new high. and the whole list
noon at about the high points, and
very steady as to tone.
Market Features.
Cha in no
financial situation today We're the re-
newal of the advance in sterling ex-
change, carrying rates up to a new
high: the lowering of quotations on
time money and the strong stand made
in the greater part of the share lis,
against determined effort to get prices
down. There was nothing new in the
exchange situation to explain the fresh
upturn. 1t simply fitted in with ex-
pectations in banking circles that the
upward movement which started a
fortnight ago and made such re-
markab!e gain last week is more
promising recovery than any since the
war. and that It win not stop until
sterling gets back pretty close to the
four-dollar level.
This was the direct result of the
fered at per cent on mixed collateral,
the lowest rate in over year.
Thir as the direct result of the
NVu sho " IL
by the combined statement of the
twelve regional banks as the result
OF last weeks operations The ratio
rose from 45.4 to AGA per cent. and
this did not occur. as similar gains
have IN many previous weeks. chiefly
through additional gold holdings. but.
rather. through liquidation of loans.
The total reduction of discounts.
mounting to sl5:.0OO.0G0. was the
largest Of any week SO far. and tn.
fact that circuiat;o came down heaH-
lily at the same time indicated the
increasing rapidity of the dc .lation
row going on throughout the coun-
try and the Increasing effect this is
having upon bank credits.
strength AccentHa:ed.
After having depressed the mark IT
until the profits looked. good. m"
shorts undertook to cash in. bu
-ound that there wasn't much sto"'
or sale. This was especially true
'rucible Steel. which declined
,oints and then walked up 10 point
rom the opening. or from Seia +
'1l. Among the other gains note.
the fo'IoEi"a: ~h"s" end three
Fights points on American Wooden. ~
on Baldwin Locomotive 81: on Mexican
Petroleum and even Atlantic Gulf
recovered to Us MT.
The comeback was tne mos com1,ete
reversal on form mag nab G and wa
not at al to the lik ing % the bears VIII,
appsI: nty hat: th;r.s ali tn ir own way
in the early trading.