New-York tribune., 1921-01-04
Rally Persists
In Speculative
Markets Here
Industrial Stocks Surge
Higher as Wheat, Cotton
and Corn Prices Go Up

Despite marked irrcgularity during
so IVY, the factors making for
strength. in the stock market prevailed.
and, by sharp uptu,n in the last
hour, industrial securities continued
their marked recovery which began in
the middle Of last week Railroad
stocks huctuatcd without much con-
sistcncy, and some Of the leaders re-
vcaled not losses for the day. as trans
portatlon experts predicted that De-
cemher earnings would be less favor
revealed a deficit
In the commodity markets the new
year opened with uniformly higher
prices. The net gain in cotton varied
from so to 1l3 points and, like the in
crease IN wheat quotations, was facil-
tated by the passage of the bill to re-
vve the War Finance Corporation over
the Pre- sidcnts veto. Spectators in COM
moditics believe the making effective
Of this instrument CT financing as an
+ and TO European purchases would mako
Tor hlgher prices. Wheat quotations
closed between IA and s24 cents a
5ushcl higher, and corn prices we're
up from ia to 24 cents a bushel.
Covering b. shorts evidently helped
the upward movement, which was made
possible by a further lifting of selling
pressure.
IN the foreign exchange market. ster-
ing moved up again, closing at So 53 y
revealing a gain for the day of one
cent. Francs and lire. however, were
trihe easier. 1t became known yes
terday that French financial represent
atlves in an informal way are already
beginning TO sound out the views of
New York bankers regarding the pros
poets for financing to take care Of
.wo maturing obligations and to pro-
vide new money. BY early spring il
IS expected that definite plans will
nave crystallizcd
The action Of the speculative mar
aets at present is interesting. After
the drastic declines of December re-
covery cannot be regarded as start
ing surprise. particularly since it was
recognized that much of the selling
was done to establish tax losses. Those .
who sold in order to fix their obligation
to the revenue collector in many in
stances retained the funds obtained
and have now come back into the mar
Het as buyers Moreover. the reverse
is also true in the case Of shorts who
preferred to wait until the new wear
10 take profits, in order to defer the
'lme OF payment of imposts on the
cams. The precise effect of such oper-
,''lVis VII tne now oil quotations cannot
DC Quantltatlvely measured but at
any rate it seems clear that the stock
market has been moving upward in re-
sponse largely to technical internal
factors rather than to any new CON
dltlons IN the outside world. It is
possible too that some frightened per-
sons took new heart after reading the
opinions of business authorities re-
gardlng conditions. in prospect and in
retrospect. The first of the wear dis
cusslons perhaps widened the perspec
tive OF those who were aroused sjmplv
because prices were going down.
The downward reactions during va
rious parts of the session we're OBJ
Viously due, mainly to profit taking by
those who had made good turn out
OF the recent rally and to short sell
'ng by those who believed that the re-
coVery had come too swiftly
a conspicuous exception to the ren-
era trend was Atlantic, Gulf & West
Indles, which continued to 80 lower,
losing 6l2 points for the dav. There
was less activity in the market than
on the closing days of last week.