The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-08
FINANCIAL NEWS
AND COMMENT
In Excited Finale of Session
Of Stock Market Prices
Fall 3 to z Points.
BIG BLOCKS LIQUIDATED
In Last Hour 100000 Shares
Change Hands-Rails Only
Moderately Lower.

In a sensational and extremely ex-
cited last hour in tho stock market yes
terday stocks broke 3 to points on
liquidation of big blocks Of stock. the
recession being accelerated by the wfp-
ing out OF stop loss orders and by mod
crate activity on the part of the bearsL
Outside of the fundamental bearish fac
tors, which have been mentioned In this
column, the price movements reversed
themselves completely as compared with
Wednesdays record following the widely
circulated report that President Wilson'S
address to-day would contain drastic
recommendations on the subject OF lower
prices and consequently smaller net
profits for Industrial corporations. In
the final hour no less than 100000
shares changed hands, and the fading
away Of prices mystifed those who were
not on the floor or who had no word
from Washington regarding the Presi-
dents probable response to the country
wide agitation for a lower cost Of living.
The sellers of stocks were confident that
they would be able to buy them back
again at a lower level and the so-called
investment issues as well as the more
speculative ones were flung overheard at
the market. In the midst of the decline
there was noted moro or less scale buy
ing and many issues looked cheap at the
final figure, but the preponderating sem
timent was not on the side OF construc-
tive development
From the opening, which was irregu-
lar, until late in the afternoon there
were infrequent signals of what was to
occur after p. NJ. but prior to the
break the market generally had given
a good account of itself. At one time
there appeared to be a rally in stocks
for brief period. Such shares as Ma
rol- ANotl
Stores showed moderate tone OF
strength until prices began to fade away
with no sign of an immediate come
back. The belief was held In many
quarters that the President will seek
enactment of laws which will extend
the Governments control of food prod
ucts to include other commodities
Whether Wall Street had any advance
indication of the contents of the Presi-
dents forthcoming address or not, the
investment and speculative public was
in a frame of mind which permitted the
lunconfirmed reports to work havoc with
current values. Whatever the action
taken in the direction of curbing prices
and OF raising wages, the Street ap-
peared TO feel that the outlook Is for
lower net profits and for reduced earn
| ing power. This outlook coupled with
the labor unrest, in which Brooklyn fur
nishes SO striking an example, was more
than to Offset the temporary improve
ment in money conditions
| Not only did call money loan in a
range of Az per cent. to 5M per cent,
but what strength there was early In the
day was due in largo measure to the
freer offering. of time money. There
were one or two renewals of relatively
small amounts for sixty to ninety days
at per cent. and a goodly amount was
placed at per cent. One institution
placed 100000 money for sixty days
with a string attached to It. The Octo-
Der maturity was only a verbal under
standing. It being further understood
that in the event Of a resumption of the
upward movement on a large scale, OF
in the event of excessive speculation this
particular loan might be called on short
notice. On the part of one of the insti-
tutions, which changed its policy so az
to loan more freely on time, the belief
was expressed that for the next few
weeks tho trend is not going to be up
ward, and that the contraction which
has already occurred in market values
has enabled brokers to reduce their loans
in general, and has, therefore. for the
moment temporarily increased the sup
ply of available credit. At any rate, tho
time loans made yesterday were timely
II and bankers began TO feel that after al
there is good profit in putting out thirty
to sixty day money at per cent, oil
even lower.
While an average decline for the va
rious classes of stocks ranged from Il
Z points, there were such extremes al
10 to IA points in the case of Stuti
. Motors, Texas Company, Stromberg
American Wooden, Central Leather. En-
I dicott johnson and Mexican Petroleum
The rails were only moderately lower
and coppers held better than, other In
dustrials United States Steel common
with sales in excess of 100000 shares
lost TN points when it sold as low as
par and it closed at 1904. Exchange
rates again moved violently against
France and Italy, with sterling yielding
only slightly.