New-York tribune., 1920-05-12
Stock Market
Declines Again
In Dull Session
Rise in Call Money to II
Per Cent Is Restrictive
Influence; Professionals
Are in Control of Trade

1t is doubtful whether without the
restrictive influence of the sharp ascent
| in call money rates in Wall Street yes
terday the market in speculative Sc
curities would have done much The
speculative element, which had sold
stocks in the closing hour the day be-
! fore, efectually checking what had
looked like the beginning of spirited
/ rally. plainly did not feel disposed to
carry ahead any operations which may
have been planned on the constructive
side.
Stocks moved sluggishly with a lack
of vgor that clearly testified to the
professional character of the dealings.
Prices tented downward most of the
session and many industrials receded
for rather extended losses, yet the
movement could hardly be called i'm
pressive. The selling nau its origin in
professional quarters and therefore
represented nothing more than offer
lngs for the short account. All things
cons dered, the market action was both
uniteresting and without particular
/ significance. If the sagging trend and
the general dullness denoted ANYTHING
1t was the feeling of hesitation that is
abroad as a result Of current labor and
credit problems.
Wal, Street at the moment is place
of confused and highly conflicting opin-
IONS. Many leading houses are advising
clients to tighten speculative commit
ments. Others recommend the sale of
stocks. Some firms which have been
extremely bearish take the view that
the process of the markets adjustment
10 any such recession in industry and
trade as has been predicted in certain
quarters has taken place already. 1t
IS indeed, not surprising that the pub
lie should stand aloof from the market
at time when even the professional
traders are not sure of their position.
Among the weak spots in the market
yesterday were the motor and motor
accessory shares which offered com
paratlvely little resistance to selling
pressure. Studebaker was in free sup
ply most of the session, declining at
the low of the day for a loss of more
than points. Reports of banking dis
cnmlnatlon against loans to the
automotive industry supplied the bears
with an argument for selling these
shares. AS was the case the day be-
fore, the professionals put forth spe-
cfal efforts to depress Steel common in
hopes Of inducing liquidation else
where. Steel broke under 94, but
hardened just before the close when the
whole market tone stiffened. Oil
shares ruled lower as a general thing,
with Mexican Petroleum. displaying
pronounced weakness at one stage.
Railroad issues were inclined to be
heavy.
Withdrawals for the account of the
government, combined with the trans
fer of funds to interior points, tended
to tig hten the local banking position.
Withdrawals by the Treasury from
local banks yesterday were estimated
at $20,000,000. An additional $40
100000 is expected to be withdrawn
before the end of the week Besides
this the normal middle of the month
demands will be heavy and are be-
ing prepared for. The rise in call
money from renewal rate Of 7 to
a high of II per cent just before the
close was reflex of shifting Of funds
taking place at this center. The amount
on money loaned at ~ per cent yes
torday was comparatively small rep
resenting only a few scattered lots.
10 per cent being the highest rate at
which any considerable amount was
taken.
In the foreign exchange market the
firmness of Japanese yen attracted
more than usual attention. The re-
cent rise in the rate in Toxic is be-
ieved to foreshadow the resumption
OF the flow of gold to Japan.