Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-01
SELLING MOVEMENT
AGAIN RESUMED
Developments Over the Holiday
Gave the Advantage to
Bear Party

New York, June 1.-The stock mar
ket ran up against a mountain of bad
news today. AS a matter of fact, there
were sufficient developments .on the ad.
verse side owed the double holiday to
knock tho props from under any mar
ket and precipitate another general
selling movement. As IL was. ii wab.
bled bit but on the declines became
intensely dull. indicating the complete
absence of urgent liquidating pressure.
Two OF the more disturbing elements
vas the further advance in discount
rates to new high levels and the pass.
age of the bonus bill by the House.
Neither of these events. were, how
ever, altogethe. llexpccted. Last week =
conference at Washington between the
Federal Reserve Board and banking
representatives easily suggested. from
the remarks. that some further radical
steps were about to be taken to enforce
the credit contraction. After the first
fright had worn of. the market com
munity sensibly recognized that the
further rise in discounts was directed
more against commercial loans, than
any direct slap at Wall street. or Wall
streets business. Although. at the
same time was generally appreciated
as an additional warning against ex /.
[ tension Of speculation on any line.
AS to the passing Of the soldiers
bonus bill by the House. the sting was
I somewhat modified by the growing conf =
dcnce Of the bill being defeated or pig.
| con holcd in the Senate. Yet at the
same time. in view of the fact 1t being a
year of politics. there was some fear
some sort Of trick might be pulled of
and, rather than looking upon the de.
feat of the bill as being cock sure, il
would be the better part Of wisdom for
all hands interested to redouble their
efforts and influence to have quietus
put upon this business. killing measure.
In addition to these two disturbing
influences. there was the uncertainty
of the Mexican situation also to create
| more or less uneasiness and give fresh
| excuse for resumption of the selling
movement. Supplemcnting these bear
ish factors was the renewal of the re =
cent liquidation in Liberty bonds, the
second As showing marked weakness at
decline Of 1854 per cent. The other
issues held ground much better. On
the other hand, call money fniled to re.
| fleet the further striugency in time
funds, opening and renewing at & per
cent, at which rate most of tho days
requirements were supplied.
While there was unqucstionably
some little real liquidation, the bulk of
the selling pressure emanatcd from the
professionals. The market opened weak.
initial losses ranging from to 1 points,
the greatest weakness being shown by
Crucible Steel, Bethlehem steel. r..
public Iron and Steel. Mexican an,
Pan American Petroleum, American
and Baldwin Locomotive and affiliated
industrials. Almost without execution
losses at the outset were extended dur.
ing the morning. Additions to the in
itial setback included United Fruit
Sumatra Tobacco. Chandler Motor anC
motor specialties at extreme recession.
Of 2 to 4 points. High grade oils met
with occasional support and Crucbl,
Steel recovered much of it's reversal
Rails rallied later on buying Of Roci
Island, st. Louis and San Francisco
Missouri Pacific and Southern Railway
Shorts pressed their advantage durin.
the stagnant midscssion, making fur
ther attacks against motors and theil
subsidiaries. as we'll as equipments anC
food issues. Traders awaited word from
Washington, where the Supreme Cour
was expected to render several impor
tant financial decisions.