Evening star., 1921-10-25
STOCKS AREF|RM
At TH|GHERPR|CES
Sharp Advances Made, Mexi.
can Petroleum Leading,
Bears Cover More Freely.
BY 8. p. WEST.

NEW YORK, October 25.-The
market was very strong during the
greater part of today's session on the
stock exchange. The upward move
ment became more general and set
an altogether livelier pace. Some of
the advances in individual stocks rep
resented the covering of the de-
moralized remnant OF the short in
terest, which was so confident OF Its
position a fortnight ago.
But there was good deal more
significance to the buying Of the day
than a mere undoing of an unprofit.
able bear" account. II the general
public were not as yet interested In
the proceedings to any great extent,
there were at least more outside buy
ing orders sent in for execution than
on any day so far. There were also
more signs that large interests which
are on the inside and know the status
of individual properties were buying
back stocks sold long ago.
Whatever connection there may
have been between the days price
movement and any Developments in
the news was Of very subordinate
character. No doubt sentiment was
influenced, as 1t was yesterday. by the
disclosure that only a comparatively
small minority Of the railway en-
ployes proposed to walk out, in case
a strike really comes. But the strike
question was not at all the leading
consideration in the market. What
the buying movement rested upon
was the evidence which has been con-
stantly accumulatiRg for weeks past,
first in one industry and then in
another.
This does not mean in the least
that the scene is set for any specu-
lative revival on a large scale. What
the stock market is witnessing Is
not a fresh advance. 1t is rather
rebound from prices excessively low
moderate business recovery and the
belief that this will continue.
The upset to the recent bear
campaign in stocks had its effect
upon the short account in other mar
kets: upon cotton and sterling ex-
sterling, which carried rates to the
highest since the early part Of the
year, was commonly attributed to
covering purchases. The same was
true Of the rise in German marks. in
which, of course, the short position
lis enormous.
Central Leather.
The Central Leather report for the
September quarter was about as poor
as expected. Preliminary estimates
placed the loss at something like
81, 600, 900. The actual figures showed
it to be S1,54O,000, this after providing
bond interest. At the beginning OF
the year Central Leather had left
Of its wonderful war surplus the
meager sum of S4.757,000. Its op-
erations for the nine months have
resulted in a loss of $12.3SS.000, SO
md deficit
now of nearly $S.00O.o00. Central
Leather stocks stood up fairly we'll
even advancing when the figures
came-<- This was partly due to the
presence of very large short inter
est and partly to the disposition to
regard everything unfavorable as be-
longing to the past.
Industrial Alcohol.
Buying of Industrial Alcohol. which
has been slow to Join the upturn In
the market, was based upon the i'm
prover!ent which has come over the
earninas position Of the company.
This position was decidedly unfavor-
able during the summer months. The
price of alcohol had gone down to ~
cents a gallon and at this figure 1t
was doubtful whether any business
transacted was not done at loss.
Nltn1n IQe ldSt 1S" eAA
cohol prices have been going up.
They stand at present 40 cents gal
Ion, and that this fourteen-cent rise
represents the return to prof1tabie
conditions again in the industry is
demonstrated by the increase in In
dustrial Alcohol operations. Only
lately one OF the plants closed down
for some time has started up again.
Mexican Petroleum.
Mexican Petroleum provided the SEN
sation of the day with an overnight
jump Of three points. to which another
three-point gain was promptly added.
The remaining shorts in the stock were
taken completely by surprise when the
company issued for publication in the
morning press a statement of operations
covering the first six months Of the
They showed net profits Of ss.3o4.ooo.
whereas in the full twelve months OF
1920 the net was only ss.174.ooo.