The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-10
FINANCIAL NEWS
AND COMMENT
Violent Declines i'm Stocks Car
ry Market to Years New
Low Levels.
MONEY RATE STILL HIGH
Sentiment at Close More En-
couraging, Although Break
Is Worst SO Far.
MONEY RATE STILL HIGH

The stock market had another sinking
spell yesterday which in point of violence
was easily the worst of the year. 1t car
ried the whole Industrial list down to
new low records and, simultaneously
with the fresh outburst of liquidation in
1ndustrials. came an entirely unexpected
selling movement IN the bond market,
which thus far has been virtually i'm
mune from the downward movement
But while the selling Of bonds made a
very bad impression on the average
stock market follower, what really did
the heart out OF the Street was the
rapidity of the decline in such stocks
as Southern Pacific, Baldwin, Mexican
Petroleum, Reading. &C., which had held
up so stoutly in the first part of the
session against the overwhelming selling
of other stocks. The way these stocks
slumped, after having given hopes of a
rally during the early trading, took the
last bit of resistance out of the market
and in the final few minutes of trading
stocks were literally dumped on the
market without the slightest regard for
their instrinsic worth.
In spite of the fact that the decline
was probably the most severe of the
year from every viewpoint il was en-
tirely orderly. There was market for
stocks every fraction of the way down,
even in the case of special issues in
which bid and asked quotations usually
have been far apart, and there was.
moreover, not the slightest sign OF
financial disturbance anywhere in Wall
Street. AS a matter of fact the very
manner in which stocks were dumped
overheard was suggestive to conserva-
tive interests that the market was some-
where near n turn; that in any event
the market had certainly gone through
the worst. There was everywhere in the
financial community after the closing
feeling for the better, and despite the
rapidity of the decline, commission
houses reported the very best kind of
scale buying as we'll as cash buying
from so-called bargain hunters. 1t was
literally bargain hunters day in Wall
Street and the surprising thing about
the whole matter was that the decline
occurred without the slightest change in
the news.
Although the lowest prices were made
during the last hour the first half of the
day made a fairly respectable showing.
There were semblances Of rallies
throughout the list but those rallies
failed TO hold, they only encouraged
fresh selling later on. and in the last
hour the whole market gave way under
the strain. There was crash OF more
than points in Baldwin. and an even
sharper break in the Mexican stocks.
but what was even more disheartenins
was the way In which Southern Pacific
and Reading sold off. Those issues had
been the backbone Of strength of tho
list and the Street had been led to be-
lieve that when the rally did start IL
would be those two issues which would
lead. When. however, II became an
parent that the market would refuse to
rally even under the leadership of
stocks like Reading and Southern Pa
chic the market was literally over
whelmed. But in spite OF all this weak
ness there were several notable excen-
tons to the trend. The low priced rail,
ala better than the average run OF
stocks. and motor stocks stood I'D I'M
der the strain in a truly wonderful man
ner' Not decline was recorded at the
close in leading motors.
There was no change whatever IN IN.
money situation. The renewal rate was
stiii held at 3 per cent, and. as Ia.
oeen the case for the last week tbe
rate was advanced to 10 per cent IN
the last hour. Those interests that aY.
pect lower money during the next two
or three days. however. are likely 70 h.
disappointed in view of the announce
ment made at the Reserve Bank after
the closing that approximately 81. 600
900 would be withdrawn from the bant-
to-day. 'iN'