Evening star., 1921-04-22
BO0MS IN STOCKS,
SHORTS Covering
Shown Advance in Value.
Sales to 1890 P. NJ,
100000 Shares.
by 9. p, WEST.

NEW YORK. April 22.-Today for
| the first time the short interest be-
came thoroughly alarmed. 1t had been
left undisturbed until the coup in
Studebaker. Even yesterday. with
Studebaker rushing up, the theory
was put out that the purpose of this
demonstration was to facilitate sell
ing in other directions. Many traders
inclined to the bear side any way
were glad to accept this theory. and
put out more shorts. Consequently
this morning the bear account was
even larger than it had been. and
when the buying spread from Stude-
baker into other of the speculative
leaders the short interest took to its
heels and the retreat became rout.
For todays abrupt upturn in the
stock market there was no explana-
tion in the immediate outside news.
1t was simply the sequel to a situa-
ton within the market itself. which
has been plainly shaping itself for
some time past.
Wall street opinion has been divided
into two camps.
One has been skeptical about the
signs of improving conditions in out
side trade aZd has been taking its
stand upon the proposition that fur
ther readjuStment remained to be
done with consequent unsettlement
ahead for the snare list.
The other side has expressed conf
dence that the real turn for the bet
ter came at the start of the year;
that, while improvement has been
very uneven and has not affected
many lines as yet. it is. nevertheless.
positively under way and should in
due time become general.
Those who took the first view have
not only not been buying. but have
been selling stocks short. Those who
took the second view have been quiet
ly accumulating stocks on every
month or more.
Bears Are Routed.
Today came the test of these op-
posing positions and it appeared to
be a pretty decisive one. The upturn,
rapid as it was, did not, to be sure,
indicate any sustained speculation
for the rise. But it did show that
bear operations had been overdone
and that the market had passed under
the control Of those who look for
a general trade recovery later in the
year. and are getting ready for 1t in
their investment and speculative
operations.
Previous to today a careful dis
elimination had been made in favor
of stocks where the business read
JuStment had seemed to be complete,
and against stock where further price
cutting and dividend reductions were
considered as a probability.
Join in Advance.
In the first category were placed the
motors, the oils, the coppers and va
rious independent specialties: in the
second. the steel and equipment stocks
stocks.
Today, however. both of these
classes moved forward with equal
alacrity. Studebaker, after another
spectacular outburst of buying at the
opening. settled back to a less con-
spicuous position. But the other mo-
tors. nearly all the oils and the cop
pers were actively bought, and by the
end of the first hour the advance had
become very general
The rebound was naturally sharpest
in stocks, where the short interest
was most crowded, such as Crucible
Steel. Baldwin Locomotive. Mevican
Petroleum. Sears Roebuck and some of
the tobaccoa.
Sales up to 1890 this afternoon were
about 100000 shares.