Evening star., 1932-11-25
MARKET STRONGER
ON SHORT COVERING
Late Upturn in Stocks Not
Regarded as Very In
preSSive.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, November 25.-Unset-
tied by the war debt crisis, all the
markets were weak today-sterling,
wheat, cotton, stocks and speculative
bonds.
In some of these there were recov-
cries in the last hour, presumably on
short covering. This was particularly
true of stocks and of wheat, but not
of cotton nor of the junior railroad
bonds.
HOvers Around Low.
Sterling exchange left off around the
low Of the day under 1921. Montreal
exchange was very weak, quoted at one
time at 145s per cent discount. Wheat,
which made a record low in Chicago
during the carly trading, rallied to
close unchanged to off II cent. Cotton
sagged up to late in the afternoon, when
the loss ran from Is to 16 points. Silver
had sharp break, with the December
delivery of SO points, March 80 points
and May 81 points in midafternoon.
Cocoa made another new all-time low.
The recovery in stocks in the last
hour was not very impressive. 1t affected
principally Union Pacific, some of the
oils and stocks in which there was a
larger short interest. TIE gold shares
were strong all day, but they economi-
cally are in a class by themselves.
Right at the start the market was
confronted with another decline in
sterling exchange. The opening on this
side was around $3.2212, subsequent to
which the pound weakened to the low
est since the suspension OF the gold
standard in September, 1881. Quota
tions in the New York market were
not uniform but it was stated that con-
tracts had been made as low as
$500 1916. In London the market was
down to the lowest since February 3,
1929.
Source Is Uncertain.
A good deal of the selling of sterling
is believed to have come from con-
tinental spectators but there was no
way of tracing accurately the source
of the pressure. How much of it was
due to preparations on the part of the
British government to meet the Decem-
Der is payments, no New York bankers
were willing to estimate.
Stocks opened slightly lower and con-
Trading was in light volume and the
declines were due more to the with
drawing of bids than to any large Of
ferings. The best opinion was that the
buying was better than the selling. but
it was buying that would not follow
prices up, contenting itself with taking
stocks as they came at the most ad-
vantageous price possible.
This was cold comfort for the pools.
Managers for these groups were for the
most part compelled to let their stocks
take care of themselves. The only ex-
ceptions to the trend were the gold
mining shares, again emphasizing the
proposition that in its present mood the
world wants nothing but gold. When
a country abandons the gold standard
than less. Mcintyre Porcupine Mining
was the favorlte gold stock today.
Market Steadier.
The market was a little steadier in
the afternoon, although there was no
important recovery. Union Pacific made
the best showing of the railway stocks
at this stage, down only fractionally.
The gold stocks continued strong.
year above $50, Mcintyre practically
duplicated its previous high and No
randa and Alaska Juneau advanced.
Noranda Is both gold and copper
producer.
Standard Brands reduced the divi-
dend to a quarterly disbursement of Is
cents, against 80 cents previously paid,
putting the stock on 81 annual basis.
The president stated that earnings for
the third quarter, which are normally
the lowest of the year, were around 241a
cents a share. The stock reacted about
a point, but that was not out OF line
with the declines elsewhere
Sterling exchange came back frac-
tionally from the extreme low, but was
still off almost points Francs were
firm, as were the Swiss bills. Guilders
were up points, but the Scandinavian
currency went off with sterling, to
which they are tied.
Copyright. 1922