Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-04
SHORTS SUFFERED
SEVERE TROUNC|NG
Weeks Operations Convincing
Proof Of Complete Reversal
Of Market Trend

New York, Feb 4.-The short in
terssts @ were given severe trouncing in
today's stock market especially in the
industrial division. The trading was
broad and active, the upward swing re.
/ crlving fresh impetus by the further
rise IN sterling exchange to a new high
record for the current movement The
equipment and motor shares led the
market Mt the opening with Baldwin
locomotive the outstanding feature.
The strength Of these groups helped
the rest Of the list and led to free
covering ail around the room, While
strong arm methods were again applied
! freely still the momentum of the for
ward movement was sufficient to AIRY
III" market along without this artificial
support.
The lower priced rails and the oils
swung into the limelight later IN the
morning. Missouri Pacific pre- eterrcd re.
ta'ncd a prominent position in the rail-
road list closely followed by New
Haven The revival in the rail shares
and the equipments was generallr at.
trlbutcd to Secretary Hoover's obser-
vations regarding freight rates before
me Interstate Commerce Commission.
" nile cncountering quite a good deal of
proht-taking the forward swing was
well sustained. although in the later
dealings there was some shading from
best prices of the morning.
l'roof of the complere reversal in the
trend Of the security markets was to be
found in the resiliency and recuperative
powers disclosed during the weeks on
crations. Except for few scattering
individual pool demonstrations. the ten.
dcncy. Of the general list since the open
ing or the current year mas been one of
indccision. Within the last fortnight
rather positive reactionary symptoms
were present. These, however. proved
to be merely haltins period rather
than any definite change in the current
of the major movement which had its
inception in the early fail months Of
1921.
Whereas year ago security values
sought lower level oy easy stages in
line with the progress Of debating or
liquidating movement. the tide of values
gives all signs now of being distinctly
upward At least It has been found {,
after each rcactionary period the sub
sequ"nt recovery invarlapiy lifts the av-
erage level of values into new high
ground. Much has been accomplished
by reason of artificial manipulation. or
more popularly known as pool activi- !
ties. Yet tho broadening of these opera
tions is 10 be accepted As a distinctly |
healthy sign. because It unQucstionably |
reflects a growing confidence in a ma
terial improvement in the general situa-
ton. AS a matter OF TACT, acceptable !
authorities quite generally regard the
immediate outlook as one of definite
hopcfulness This confidence is not !
merely one of sentiment. but is based /
upon the knowledge of the rapid adjust !
ments accomplished in fundamental con-
ditions
In both the foreign ana domestic sit |
nations there are to be found many signs ,
of encouragement. The successful |
rounding out of the Armament Confer
enc" and the passage Of the foreign debt !
refunding bill Offset in "a measure the
unsetting influence Of the soldic- bonus /
bill. which has been cmployed more or
less actively as n rearish argument.
Their" is at III" same time growing
hope the Chicago conference will result
in satisfactory readjus'ment OF the
transportation situation. while the un-
interrupted recovery in sterling eS-
change indicates "A consistent clearing
up of the foreign economic situation.
The foreign problems. 1t is true. are
still far away from happy solution.
but the right steps. apparently. are being
taken in the right direction. which are
certain in the end TO bring the much !
desired results.
tressingy poor earning statements OF
the industrial concerns command little
more than academic interest. or exert
50 little market influence. Such eXh!-
bitions had long since been anticipated
and were discounted in the almost con- I
slant melting OF security values in last
years market While it is true the
immediate future of most of these con-
Germs offers little hope Of material bet
terment. vet there are already present
definite signs Of recovery from the in
dustrial inertia. and a slight quicken.
ing in the pulse Of the general business
wor'd II may take weeks and months
before any concrete evidence OF this I'M
rroycmcnr will take definite form. but
there is every probability the secudity
markers will continue to discount the
turn about face in general business CON
ditionS before n reality of the same is
pubIirly appreciated.