The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-12-02
BRISK RISE SHOWS
RECENT REACTION
In STOCKS OVERCOME
Strong Resistance Causes Bears
to Reduce Selling Pressure
and Extend Covering.
BY The Associated Press


NEW YORK, Dec. THE brisk rise in
prices in today's stock market provided
further confirmation OF the belief that
the recent reaction had been overdone,
as had the rally which preceded it. Bear
operators made a few attempts to I'M
cover weak spots concentrating on the
oil shares and a few of the leaders, but
the strong resistance shown by the
stocks induced them to reduce their SELL
ing pressure and extend their covering
operations.
While some new buying power was in
evidence during the day, the buying gen.
orally was of cautious and orderly char
acter. Gains in standard shares ranged
from large fractions to slightly more than
two points, while some of the high priced
specaltes advanced to pointB.
Copper, rail and rubber stocks were
the most prominent. Revival Of reports
that negotiations were nearly completed
for the absorption Of the Chile Company
by Anaconda resulted in a heavy buying
OF copper shares, the speculative COM
munity being Of the opinion that the
sharp competition now afforded by South
American companies because of their low
production costs would be lessened by
Anaconda's control of Chile, the largest
South American property. Cerro de Pasco
benefited most by the rally, gaining 21s
points, Anaconda improved points and
Chile fractionally, while gains of l to
nearly 21a were scored by Kennecott, In
spiraton, Butte and Superior, American
Smelling and Utah.
Announcement of a ten percent increase
in tire prices by Springfield also
was interpreted as a bull card but was not
unexpected in view of the recent ad
vances in cotton and crude rubber prices.
Kelly Springfield moved up rs, United
States Rubber rs, Goodrich IA and Fisk
q.
Publication of more favorable October
earnings statements, combined with re-
ports of increased dividends on some
shares was held responsible for the better
prices of rail. Union Pacific made up all
but fifty cents of the $3.50 dividend which
came of the stock today and New York
Central was pushed up to 1874, net gain
of 3& Other strong spots in this group
were Canadian Pacific, Chicago and East
ern Illinois, St. Paul Rock Island pre-
ferred, Delaware and Hudson, Lehigh
Valley 800" and Western Pacific pre-
ferred, the gains ranging from Z to 81
points.
Among the more active shares Bald !
win, American Can, Bethlehem Steel, |
Brooklyn Rapid Transit, Crucible. Electric
Storage Battery Pan American Is, and
Piggy Wiggly advanced ! to points and
Studebaker and United states steer COM
mon large fractions. Fisher Bobby, Burns |
Brothers A, and Continental established |
new peak prices, The advances running
from 2 to s points. Mexican Petroleum, |
I,orillard Tobacco and KresGo also were
conspicuously strong.
International Harvester. after an early |
gain of "a points. dropped back for |
net loss of 2 points on announcement that |
for the time being, no further stock diVi-
dends OF 2 percent would be paid.
Call money opened at percent and
then advanced to 5h, where it closed.
The time money market was quiet 30
day loans being arranged at 4& percent
and the longer maturitics at percent.
Tho commercial paper rate continued at
4st percent for the prime names
Foreign exchanges were stronger, de-
mand sterling getting up to $4.52l2 and
French francs to 1903 Most of the other
European rates also showed substantial
South American exchanges
,a-nra nn ainr.