Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-13
REACTION
OCCURS IN WALL ST.
Declines of 2 to S Points Under
Heavy and Persistent Wave
of Selling
Stock sales today on the New York
exchange totaled 1 ,47S 800 sales.


New York, June 13.-The New York
Evening Suns financial review this aft
ernoon is as follows:
Not since the peak of the bull move
ment was reached has the stock mar
kct experienced as broad and extensive
a reaction as that which occurred to-
day. Net declines ran from 2 to 5
points throughout the list under a
heavy wave of selling, which persisted
throughout the greater part of the ses-
sion. At the low figures established,
representative stocks were anywhere
from to Is points under the top
prices recorded a fortnight ago. There
was no noteworthy increase in the vol
ume of business on the decline, which
was orderly, although severe. A good
/ market obtained for stocks all the way
down. and no demoralizing breaks oc-
Cured under the rush of public selling
| in an attempt to save what paper profits
it could.
Professional traders played an i'm
portant part in acceerating the move
ment and without doubt a larger short
interest was built up in the market
than has existed for long time. The
main force operating to lower prices
was the money situation. Traders
have not had ample warning of just
such events as transpired today, namely
an extremely tight money market, IN
which it was almost impossible to obtain
time funds while call loans on all in
dustrials held at 0 per cent.
The gradual shrinkage which has been
going on in security prices had i'm
paired many margin accounts and
brought prices within striking distance
of many stop loss orders.
The professional element was decid-
edly bearish this morning and set out
to force lower prices. Quotations
yielded gradually at the start but the
decline gained momentum as the session
progressed and stoploss orders were
uncovered AS was natural under the
circumstances, the weakest features
were those which have recently ad-
vanced the most violently.
The days performance was entirely
readjustment of the market to its
new levels and was regarded with sat
isfaction by the conservative element.
The substantial shakeout has obviated
the chances of a disastrous break in
prices which surely would have followed
had the reckless up bidding of prices
been persisted in.
The call loan rates on mixed col
lateral went as high as IL per cent,
and the borrow ers experienced consider
rtr do
ton. This condition caused persistent
selling of stocks and prevented any i'm
portant rally. The market steadied in
the last hour but closed near the low
figures of the day.
Pool support was withdrawn from
specialties, and many of these issues
which have been skyrocketing went
down very easily. Eight per cent call
money is altogether too high a figure
; to permit profitable pool activities and
brokers were disposed to reduce loans.
! The tobacco shares withstood the de-
cline as we'll as any group, but no de-
partment of the market wSs proof
j against today's selling. There We're ont
or two individual stocks which showed
strength, notably United States Rubber
: and International Agricultural pre-.
ferred. The steels. rails and seasoned
industrials offered excellent resistance
on the way down, and losses here, as {
{ rule, did not exceed or 3 points.
. On the other hand, General Motors
! American International Corporation
Central Leather, Royal Dutch, Mexi
can Petroleum, Studebaker, Crucible
Atlantic Gulf and the like were dowi
from 4 to 3 points during their weak
est spells. Rails followed the lead o
industrials, but were not under par
J ticularly heavy selling pressure. Read
: ing and Southern Pacific, in whicl
: there was a relatively large speculatiy
I following, were about the weakest II
! this group.
Arrangements were made today TO
: the payment of the second installmen
2 Of the federal income and profit take
3 which are due June IS. This contribute
9 TO the strain imposed upon the none
market.
{ Comparatively little attention wa
:. paid by Wall street to affairs outsid
4 Of the market. The days fiuctuation
:. were due solely to the money situatio
y and the vulnerable position Of stocks
warning Of which have been repeated
Igiyen in the last two weeks.