Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-29
FURTHER RECOVERY
IN LOCAL SHARES
Cro,ving Belief That Worst Of
the Credit Situation Has
Been Passed

While the trading was listless and Of
very small dimensions the tone of the
opening local market was decidedly
strong. Initial prices with one or two
exceptions were established from "A to
q above last nights closing level. AL
though the volume of business was small
the dealings were well distributed. in
dicating a much better underlying buy
ing demand, and during the remainder
of the short session modest gains were
added to opening advances.
The further rallies made by the local
utilities which carrier in the week had
been subjected to considerable pressure
supplied the moro encouraging feature
of the early dealings. also supplying
further testimony of the disappearance
of the uneasiness manifested in this
division of the list. Philadelphia Rapid
Transit moved up to 1873 Philadelphia
Electric to 211a; Union Traction TO
31ls and United Gas Improvement to
42%.
Further substantial recovery was at
the same time recorded by Lake Su-
perior Corporation. which advanced to
1875. Pennsylvania Railroad touched
the high peg of the week at 40b
American Stores continued firm at 44E
The only decline registered was by
United Railroads. which ran of 81 to
165 on small offerings.
Seldom are such wide and violent
price movements in the local stocks
witnessed as that which occurred this
week in what may be called the leading
Philadelphia issues. Neither was il
supposed these shares would ever drop
to such an abnormally low market value.
Any one predicting prices which were
lp1yv
number of the high grade dividend pay
ing stocks but good bonds, as we'll.
would have quickly been adjudged as
a fit subject for an insane asylum.
Market conditions. however, and these
unbelievable low quotations furnished
convincing cxcmnlifiCHtiOn of the seri-
BUSINESS Of the strained credit situation
The critical condition all along had
been undcrestimated. although there
were signs galore, which openly sug
gested the necessity of caution and
drastic readjustment.
The situation reached a stage whereby
it was found imperative TO apply the
most drastic sort of remedy. The dose
undoubtedly was bitter one, and one
hard to swallow. The decision of the
specialists, however, has proven con-
Clusively to have been wise and re-
suits were most encouraging. The crit
icul state of affairs and the need of
the application Of a severe curative
perhaps are best told in a few words
Of a prominent local banking interest
He said, in discussing the semicollapse
OF the market structure under the tre-
mendous wave of liquidation, lis it not
much better to liquidate than be IL
quidated?"
The fury of the storm has passed, and
out Of the cloud ridden horizon there
has come a ray of light giving hope that
the worst has been seen and a condi-
ton which threatened a little short of
catastrophe is safely bridged over
Perhaps the structure which carried all
concerned over the gulf of widespread
destruction might have been built on a
sounder and frmer foundation. 1t
was erected hastily on the first aid
principles, and each day counts toward
strengthening the underpinningg which
will serve TO make the entire structure
indestruCtible.