Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-18
SMART RALLIES As |
SHORTS RETREATED.
Immediate Future Of Market
Depends Upon Position Of
Various Pools

New York, Feb. 1s.--prices snapped
back sharply practically all through the
list in today's closing stock market.
Matters were made decidedly uncom.
Portable for the short interests during the
two hours, as oil efforts to cut down
outstanding commitments proved sig.
nal for vigorous upbidding. The pro.
nounced reversal had it's inception in
the opening strength Of the railroad
shares and equipment issues. but the
movement steadily broadened as the ses:
sion progressed. reaching out to all
classes Of the stocks. Most Of the oils.
motors and others caught in the late re.
'ction yesterday made animated re.
bounds.
British bonds. particularly United
Kingdoms, again featured the active
and broad bond market. rising to 1851.
new high figure. Their strength was
associated with the further advance Of
exchange on London. Other foreign
bonds. especially French. Belgian and
Mexican issues, were irregular. Among
domestic issues the Liberty group re.
acted slightly and Denver and Rio
Grande Cancelled the greater part of
yesterdays two point gain. Pennsyl.
vania 4las. Chesapeake and Ohio con-
vertibles and Atlantic Coast Line SIS
also reacted. Strength was shown by
New York Central debenture Gs. Kan.
sas City Southern 5s and Central Of
Georgia rs.
While the week was replete with i'm.
portant and interesting happenings ap.
plying both as to the domestic and for.
eign situation, 1t is extremely doubtful
whether the general performance Of the
n rkaf rp,,1I ha lyro,t1r ,ni
associated with any of these events. Al.
though continuing to display an almost
unmistakable upward tendency. the
finger prints and trade marks OF pool
manipulation were too obvious to b.
overlooked by even a disintercstcd and
inexperienced layman. This fact does
not in any respect belittle the potency
of the constructive movement. as the
preliminary stages Of every major mar
ket swing is Invariably attended by
such a familiar jockcying process.
Nevertheless. the movement in the
main body of stocks has apparently
reached jun>turc wherein the question
logically arises y 20 whether the dem
In the various scle\ted issues have not
over discounted any recovery in busi.
ness and industry that is likely to occur
during the first half Of the current year.
Possibly it would be better to say the
immediate future of the market or the
maintaining of the existing level Of
values or possible higher level will
depend very largely upon the position
of the pools and other speculative com.
Einations largely responsible for the
e'evating process. The easier money
market condition unquesti,nably is q
strong ally for the speculative com.
binations, and every one recognizes the
relatively low loaning rate has supplied
powerful lever for pool operations.
This. in a measure, from market
the conspicuous inability to attract the
much desired outside following. Much
the same as Il steady diet Of some par.
ticu!ar prescribed food finally becomes
nauseating, likewise does the expert.
ence Of holding the bag become !-E>oa-.
to pool members. In other wo-Gs. TO
one as yet has been successfully ab.,
to raise himself BY his own pooc strap.
This does NOT mean 70 Imply. -0-
do reliable signs suggest. the Co,.,:---:.
tive movement has ended. bG, cae 20.
s;tion is approaching wherein !: j.
necessary for n partial distribution ::
least Of the pool holdings before IL.
forward swing can attain much greater
IioHIcutuh. HcEc I'sS DteIi. anu WI.
continue to be, pool distribution Of
specialties under the cover Of the
strength and growing favor OF other Sc
lccted issues. This process may be spread
over long period and at times give
the appearance of irregIlarity which
prevailed much of the time throughou,
the last week.
Outside Of the market itself. con.
ditions continue to improve steadily, re-
hccting uninterrupted progress in tie
reconstruction both at home and abroad.
Following closely Oh the heels of the
recent remarkable recovery in sterling
exchange, the reduction Of the Ban
of England's discount rate furnished
conclusive proof Of rapid return of a
condition of normally in the worlds
money markets. foreshadow!ng an early
re establishment Of the equilibrium Of
the foreign trade machinery which was
thrown out Of keller by the war con
ditions. The Soldier Bonus Bill, which
n week ngo threatened to undo all that
which had been accomplished toward
bringing business recovery. is no
.onger regarded as a menace because
Of the firm stand taken by President
Harding. and the latest Washington ad.
vices point to the possible shelving Of
the bugaboo.