New-York tribune., 1919-11-20
Liquidation and
Short Sales Send
Stock Prices Down
Sharp Rally Comes After
Many Issues Touch New
Low Levels; Demoraliza-
ton of Exchanges Factor

sharp rally late in the afternoon
wiped out part of the heavy losses that
had been sustained in the earlier trad
ing on the Stock Exchange yesterday,
but at the close most stocks were sub
stantially lower than they were at the
end of Tuesdays session.
While dealings were more largely Of
professional character than for some
time past, and much of the pressure
responsible for the decline Of prices
came from spectators, who sold short
in expectation of further decline
should the Senate fail to ratfy the
peace treaty, there were strong indi-
cations that real liquidation was going
on steadily and in considerable volume
This was the most interesting phase of
the session.
Just where the liquidation is COM
ing from it is hard to say. 1t seems
probable. however, that spectators who
believed last weeks slump would prove
to be nothing more than brief halt
IN the bull market, are coming, perhaps
mistakenly, to the conclusion that Che
advance is not likely to he resumed
IN the near future and, therefore, are
taking such profits as remain.
Before the afternoon rally developed
many stocks touched new low prices
on the present movement. Issues which
were relatively strong even when the
tumble in high priced specialities upset
the market week ago, were unable
to withstand the pressure exerted
against them. United States Steel COM
mon, which never got below 1O3 when
the big break was on, yesterday sold
at 1919. the lowest price since the
steel strike began. The recovery to
\
for the turn contributed, carried the
price of Steel up to 1O314, with net
loss of x of point. The action of
this issue was fairly typical of the
whole speculative list, excepting rail
road shares which, while by no means
strong, were relatively firmer than the
industrials.
Uncertainty as to the fate of the
peace treaty undoubtedly was partly
responsible for the weakness of the
market, but the continued decline of
the foreign eNchanges-whch may
nave been due in measure to the
treaty crisis-was a more potent factor.
At least bankers SO regarded it, and
their views were reflected by many
traders. 1t is quite generally realized
that such unprecedented demoraliza-
ton as has been displayed by the ex-
change market Of late must bring about
curtallment of our export trade, even
more serious than that which has
already taken place. The prices of
American goods, in terms of foreign
moneys, are becoming so exhorbitant
that no solvent buyer could possibly
afford to pay them. except under the
urge OF most desperate need Foreign
trade and domestic prosperity are in
timately related. Fortunately, however.
the volume of deferred domestic bust
ness Is so great that the reduction of
foreign business may not make itself
felt for some time.
Reports that the banking author tiles
are considering means of curbing
speculation In commodities were taken
IN Wall Street as indicating that money
Tor stock speculation would remain
dear for an indefinite period. Most
loans were made yesterday at ~ pcr
cent, but this rate was shaded toward
the close.