The Washington herald., 1920-11-19
MARINE BREAK
SWAPS MARKET
Skarp Dselise i. ShippAs Shares
csssss SeIIihs 0rsy Wild U.s.
sstfies Esfire List
MANY Low RECORDS MADE
Aneieaa Isterns6sssI Company
Features Day va Ds'' Of
Tea Psish.
MANY Low RECORDS MADE

NEW YORK. Nov. IA sharp
break in the prices Of shipping shares
today due TO the passing Of the
dividend on the American Interna-
tional Corporation stock. which had
been paying dividends At the rate OF
Sc a share annually. unsettled the
stock market today and accelerated
the downward movement Many
new low records were made. Net
losses in seasoned stocks ranged
from / TO points. Specialties sur
fered declines OF from TO 10 points.
the maximum drop being in Amer
lean International.
Early in the day the general mar
ket showed signs Of resistance and
a rally was in progress when an
nouncement of the passing of the
American International dividend
was made public This action had
a depressing influence and induced
further short selling and liquida-
ton. which continued to the close
OF the session. leaving quotations
near the lowest.
Persons In a position TO know
state that wealthy people who have
been pessimfstic for more than a
year on the stock market have
within the last week been taking
advantage Of the liquidation IN
progress to buy shares.
Some of these purchases show
losses Of from s TO 10 points. but the
owners of the stocks are confident
that they are selling considerably
under their intrinsic value, and the
market has about reached bottom.
Short selling the last two days has
been considered Of a poor quality.
The stocks have been going into
strong hands and when the "elev-
enth hour" shorts begin to take
back the shares sold. they are eE-
pected to ind offerings in scsnt
supply except ct higher prices.
Amerieaa International Cerpern tIe..
Passing of the American Inter-
national Corporation dividend over
shadowed everything. Persons
lclose to the management say that
the dividend was barely earned. but
that in view OF the South American n
situation. the directors considered n
wise TO stop payments entirely.
Their action was considered drastic.
1t had been hoped that the board
would reduce the payment and then
IL there was no improvement in the
situation during the next three
months it would have been time to
omit the dividend.
| Weakness of American Interna-
tionaL which dropped 20 the new
ness to the other shipping shares.
International Mercantile Marine
preferred declined nearly - points
and the common 2. Atlantic, Gulf
& West Indies lost more than and
United Fruit more than 8.
The Money Situation
One important and favorable de-
velopment occurred in the money
market when funds on time In fair
volume were loaned as low as eight
per cent. The money was loaned
for the account OF out OF town in
istitutipns and more would have been
loaned except that prospective bor-
rowers were unwilling to pay that
rate. which compares with sA 10 Si1
per cent early in the week Banks
were also in the market for accept
ances and commercial paper. indi-
eating that manufacturers are pay
ing OF loans. Local bankers con-
tinued to predict lower rates for
money by the first Of the new year
There was also a better supply o,
call money. The renewal rate was
IL per cent yesterday. which is
1.-THE lowest recorded since October
% last. A few minutes after one
O'Clock the rate eased of to per
cent.
Tire Company shares.
Tire company shares were firm
and inactive and in the face Of the
general weakness In those issues.
indicating that liquidation had
about run it's course in those two
issues. Managers OF tire companies
state that much OF the overproduC-
tion of tires was due to mushroom
concerns which are gradually dis
appearing as a result OF financial
dificulties.