The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-14
FINANCIAL NEWS
AND COMMENT
In Short Session Of Sacrifice
Selling Stock Market
Holds Up Bravely.
RAILS DECLINE SHARPLY
Clearing House Statement Is
ImprOved-Reserve Bank
Position Unchanged.
RAILS DECLINE SHARPLY

The story of yesterdays short session
Of the stock market was much the same
as II was on the preceding day and on
the day preceding that, an outpouring
of stocks from start 10 finish In abso-
lutte disregard of the fact that stocks
were selling in many instances lower
than when the big rise started nearly
two years ago. It was a day OF sacri-
ficing stocks for what they would bring
In. but, in spite OF the fact that the
market had TO absorb enormous blocks
of stocks. 1t stood up very bravely under
the circumstances. There was a market
In all groups every fraction OF the way
down and. notwithstanding the fact that
the day marked the seventh successive
one OF the decline. there was not the
slightest feeling Of disturbance in the
financial district. Rather the orderly
manner in which stocks went down
showed that there was tremendous in
vestment demand just underneath the
market. which. while 1t did not prevent
prices from selling off. nevertheless In
dicated that stocks were being absorbed
almost as eagerly as they were being
thrown overheard.
The liquidation was by no means as
general as It was on the preceding day
in that there a good many stocks
stood up remarkably well under the test,
but it still involved the principal rail-
road. Industrial and speciality Issues II
was particularly disheartening for Wall
Street to see the railroad shares break
further and stocks of the type of Reading
and Southern Pacific finally give way
under the strain, but IL there was dis.
couragement over this it was equally en-
couraging to find that the motors, some of
the oils and individual stocks were hold
ing so well. AS before, there was moth
ing new whatever In the news to ac-
count for the fresh outburst although
the big facts in the trade situation were
much the same as they had been all the
way along. 1t was simply a case OF the
market having gained very great mo-
mentum on the down side and how far
the selling would go before IL would be
checked by the tremendous volume of
buying orders ready to come into the
market on every break in the present
level Of prices.
The market experienced its worst
period in the final hour, when the SELL
ing of such standard stocks as Southern
Pacific and Reading was at fits height.
Before that there had been a semblance
OF rally in the Industrial group, but
as that rally finally gave way to fur
Their selling stocks were thrown over
board again in even larger volume than
on the preceding day. Among the prin-
cipal low priced railroad stocks which
suffered were Rock Island, Southern
Railway. Baltimore and Ohio and st.
Paul. Those issues have been consid-
cred immune from the liquidation. but
There was further severe weakness
in the steel shares, with Steel COM
mon at n new low for the year All
equipments again suffered from the SELL
were the sugar shares. There was an
other cut in sugar prices to help those
stocks downward, and once the llquida-
ton here was renewed they broke very
easily. The motor shares once more
gave an excellent account OF them
selves. with Chandler standing out
above the whole market with American
Wooden.
The Clearing House bank statement
was more favorable than wall Street
lad anticipated. surplus reserve rising
more than s32.0OO.OOO and loans con
tracing approximately $4,000, 900, the
Improvement in reserve thus wiping
cot the deficit in that item last week
At the same time there was a shrink.
age of s21. 100000 in deposits Govern
ment deposits at the close of the week
amounted to only ss.500.Oo0 and all OF
them will be withdrawn on Tuesday, ac-
cording to notices received yesterday
h. the banks. The local Reserve Bank
position was virtually unchanged. which
was naturally Disappointing, as Il
marked the third successive week that
the Reserve Bank had been unable to
improve It's position. The effect Of IL
was offset of course. by the favorable
Clearing House statement. but on the
ether hand the fact that the Govern.
ment would make further Withdrawals
from the banks on Tuesday indicated
that there would be no change in tho
money situation for the first half of