Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-06-21
STOCKS RALLY ON
+. SHORTS COVERING
Some Good Buying Orders
Aid in Fair Display of
Strength.
BY STUART p. WEST.

NEW YORK, June 21.-After a full
month Of virtually uninterrupted de-
cline the market finally turned today.
The change came. as it always does,
when sentiment was bluest, and when
the market conditions looked most
desperate. Wall street went homo last
night feeling more pessimistic than
it had been at any time. 1t came down
this morning prepared for further
trouble.
The upshot. however, was a period
or further unsettlement at the open
ing, a little more driving of few in
dividual stocks, and then an abrupt
recovery which carried prices up a
point to three points before there was
any pause at all. In quite a part of the
list yesterdays entire losses were re-
placed before the session was half
over.
The improvement on the stock ex-
change helped the other markets in
the same way as yesterdays break
had dragged them down. Both wheat
and cotton recoiled sharply. The call
money renewal was marked down to
5 per cent, repeating its January low
for the year. Five months ago the
5 per cent quotation proved abortive.
1t started interior banks drawing
down their New York balances to
such an extent that before fort
night was over the local money mar
ket was in a state of actual tension.
But the present situation is a very
different one. first. because the fed
eral reserve ratio is some ) per cent
above what 1t was then. second, be
cause there is no longer as keen
demand for funds at inland centers,
and third, because the great decline
Of stock prices has reduced the stock
exchange demand to minimum,
while greatly increasing the supply.
Studebaker PAGES List.
1t was Studebaker which gave the
initiative to the market this morning.
Nothing had been SO demoralizing
from the bull standpoint as the way
this stock went off yesterday. But
the explanation for the decline was
simple. A lot of small spectators
had been going long of Studebaker
because of the way the stock stood
up. This made temporary weak
position for the bears to work upon.
and they succeeded in breaking the
price down below 20 in the furry at
last nights close.
The big buying orders, as has been
pointed out before, We're in the mar
not follow UP the advance to II. but
it did reappear when the stock got
back again to its starting point.
Rails DO BETTER.
The market action of the rails made
! it still clearer that the trouble with
them on previous days was not so
| much the uncertainty of the railway
| outlook - the weakness in their
| market position caused by too many
| small traders having bought into
! them during the last month or so.
| Liquidation from this source having
pretty well run its course, the ma
| jority of these stocks came back
| readily. Great Northern preferred
had left off last night within a half
! point Of its bottom price for the
year. despite the declaration of the
regular dividend. But on only a very
| few transactions this morning ii sold
| at So
The upturn in Northern Pacific and
| Canadian Pacific was similarly abrupt.
Southern Pacific dipped to GA which
| was new low. but fifteen minutes
after it had rallied to 20. Rock Is
| land came back the quickest of the
low priced rails. Active short COW
ering went on insNew Haven as the
result of the official reassurances
given regarding the financial condi
| ton of the road.