Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-04
HEAVY SALES ORDERS
DEPRESS SECURITIES
Industrial and Railroad Issues
Show Big DecIines-Trade
Is Lively

~" toihs nus Hc -NtN 1tlh
Evening Suns financial review this af-
tcrnoon is as follows:
Between the time of closing the ex-
change on Friday and opening it today
much tranSpired which was calculated
to work with depressing effect on those
who held stocks. Money conditions were
such, last week, that it did not require
great deal of weight to bend the
scales to the selling side, and the weight
was supplied by the ominous turn of
railroad affairs. including the radical
character of the legislation for fed
cral ownership of the roads advocated by
inc brothcrhOods and the general talk
of the shopmcn's strike spreading.
Inc result was an accumulation OF
selling orders over Saturday and Sun
day and the execution of these in tho
first hour brought about losses of 1 to :
points among industrial and railroad is
sues alike. Trading was lively in that
period.
1t might well have been supposed
that the large short interest known to
exist would have prevented movement
Of this extent. As matter of fact
virtually all the business transacted was
put through on behalf of those long of
stocks who had been receiving pcrsis-
tent and even urgent hints from their
brokers that it was becoming increas-
lngly dlthcult daily to extend financial
accommodation. Indeed, the money
furry last week, when call rates jump
cd to 20 per cent, had made an un-
m "a l. "a h1n nrnceiAp h,t
and client and served to do away with
the feeling that the situation would
speedily mend and then the buying could
go on again as before.
The behavior of the market today
seemed to, spell the conviction that at
last the stock trading end of Wall
street had begun to realize that the
talk of hard money was not mere talk.
There was reason to believe that the
drop in prices would have been even
greater had it not been those short
of stocks were more Cngrossed in cover
ing than in putting out new lines.
In truth, the absence of any material
short selling was one of the outstand.
ing features of the session. At the end
of the first hour trading became more
orderly and there was some tendency to
rally when it was made known that
strike conditions had been greatly cXag
gerated and that Director General Hines
had arranged Il conference with the va
rious groups of employees. Later there
came the report from Chicago that the
striking shopmcn had been ordered to
return to work.
4 new selling wave struck the list
at midday, however, and losses were
further extended Il point or two in the
early afternoon. While reactions
among the rails were not quite so broad
as among the industrials, these stocks
proved to be less resilient on occasions
The steel and equipment shares were
hard hit, United States
Steel dropping below 1O6, Cruciblc to
130, Bethlehem under 50, and so on.
The tobacco issues resisted at first, as
did some of the specalties, but they,
too. yielded eventually.
The widespread demand of railroad
workers for higher wages or reduction
in cost of living, or both. was not tC be
ignored as factor in imperilling in
dustrial and commercsial profits. I'm
der these circumstances there was every
incentive for those long on the market
to DISPOSE of their holdings. The only
thing to offset the influence was short
covering, and that was found entirely
inadequate. Indeed, some commission
houses were advising selling on every
upturn. Effective support could not be
given. aud the decline was progressive
to the close. Transactions exceeded
300, 900 shares. War loan bonds were
lower, Liberty As and AIS losing about
one half point.
Conditions within the money market
were quiet and steady. The call loan
rate ruled at O. and 7 per cent until
late, when 8 and 51a per cent were
quoted, and time funds were nominal
at per cent bid and Z per cent asked.
Naturally business was very restricted
not only in view of what happened last
week and repeated warnings of reluc-
tanrc to loan for stock market purposes,
but also because of the growing demand
on behalf of crop moving.
Because of the holiday in London,
there was little to be expected of for
eign exchange. Except for sterling.
which advanced fractionally, the trend
was downward, francs receding one
centime, Belgian and Swiss francs 2
points each and the same in lire.
Cotton suffered sharp break of more
than 81 bale and corn was weak to a