New-York tribune., 1920-11-10
Burst of Selling
Carries Securities
To New Low Levels
Final Quotations Most De-
pressed of Day, but Brok-
ers Anticipate Technical
Rally; Commodities Drop

The will to sell securities became
more irresistible yesterday, and a
spectacular break in the late trading
carried industrial stocks to the lowest
prices at which they have been quoted
thus far in 1920. In the last seventy
i've minutes of the session securities
were forced onto the market for what
they would bring, and the final quota
tions IN most instances we're the low
est.
The nature of the fluctuations indi-
Gated that professional traders were
to q large extent guiding the trend.
and that the slump was greatly fa-
cilitated by short selling in huge vol
ume: But the efforts of the bears to
attain profits out of failing quota
tlons were aided and abetted by hold
ers or stocks who either out OF fear
or necessity sacrificed their holdings
at the deprecated levels. As Stocks
tumbled into lower strata fresh arrays
OF stop-loss orders became effective
and added great momentum to the fall
| ing movement, which, as it forced QUO
tations down, made it necessary for
brokers' IN many instances to close ont
accounts for insufficient margin. All
'hese factors assisted the speculative
sellers Tor the decline, who, as a result
of persistent drop of industrial
fOIIGN--
ing the election, are now IN a positjon
TO take slzable profits by covering
'helr snort commitments. For this rea-
son many observers in commission
houses are predicting that a technical
rally VIII soon come to check. al lca
temporarily, the downward rush Of
prices. VI
AT the opening yesterday new low
plJces were attained for many Of tho
industrial stocks, but then moderate
recoverles were made. Soon. however
selthg Sc ing became pe,rs sstent, and most
OF the industrial list revealed SWIM
,oms OF weakness. Until about / :45.
however, the action Of the market was
relatively moderate, but then what
seemed to be concentrated campaign
or forcing stocks to the market place
began, and such speculative leaders as
United States Steel, Baldwin Locomo-
tive and Mexican Petroleum were Of
lered IN great volume. and most of the
rails shared in the Decline In this
late period more than one-third Of the
day s transactions took place, and
sales for the day reached 1872 900
shares, Of which Sol 700 were rails
winch marks the broadest activity on
'he board IN many weeks. The extent
10 winch the downward swing has in
duccd liquidation of actual stock is
suggested by the exceptionally large
lumber OF securities in which trades
we're made. The focusing of selling
pressure late in the session caused
Hoor brokers to function with irtensi-
ned rapldity and excitement, and in
some cases the specialists and the odd
lot traders remained at their, posts
.lmost half an hour after trading
stopped to adjust their books
Although brokers again had to paw
. and ~ per cent to WOO call money
from the banks, they felt hopefu Of
an easing soon of the present strinren-
cy. Another factor which has de-
pressed the market has been the pan
lcky state of the European exchanges.
but they began to recover part Of their
losses yesterday. From industry. how
ever, came further indications which
measured the extent Of deflaton. For
example, at the auction sale of Alex
ander Smith G. Sons, the carpet and
rug irm, prices were from 10 to 171a
per cent of those previously quoted.
IN the grain markets the same specu-
latlve phenomena which were manifest
IN the stock market were to be dis
cerned-an early recovery followed bv
late decline. In the wheat mart
March contracts were quoted at $1.75,
a new low for the year, which marks
a decline of 81 a bushel since 81 free
speculative market was restored, on
July 10. Moreover, corn and sugar
prices fell to the lowest figures at
tanned thus far. Cotton contracts av-
eraged losses of cent to the pound.