Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-07
TRADING LANGU|D
in CLOSING MARKET
Undetermined Status Of Pools
In unseasoned Issues a
ssss Market Menace

"A New York, Aug. 7.--Today's closing
summer traders affair. Dealings were
very light, rejecting widespread wait
Ing policy and a general disinclina-
tion to extend ventures over the week.
end IN view Of the uncertainties OF
the Polish Russian situation and money
market matters. Foreign adviccs were
somewhat more cheerful. but there was
apparently general willingness to wait
for the result OF the conference between
the French and English leaders.
& Yesterdays rebound evidently cleaned
up much Of the outstanding short in
terest, little demand from that quar-
ter was manifested during the short
session, The bullish impulse which was
30 marked yesterday was lacking. but
on the other hand the hear pressure
was light. Few fresh weak spots were
uncovered, notably Invincible Oil,
which dropped over 4 points. Baldwin
Locomotive, and Bethlehem Steel were
also inclined to be heavy. On the con
structive side Delaware. Lackawanna
and Western continued prominent fea-
ture with a further advance of Z points
on the top Of Yesterdays 21 point
jump. New York. Chicago and st.
Louis, which rumor says is to be
taken over by the Lackawannu. opened
up IS points. The other railroad shares
held their ground we'll.
While one of the greatest uncer-
tainties of the market situation was
removed this week in the liberal ad-
vances granted by the Interstate Com
merce Commission in freight and pas
eenger rates to the railroads of the
country. the weeks developments meas
rred from a viewpoint OF security values
were highly disappointing. The violent
andyextensive further decline in prices,
In face of such favorable constructive
news. only naturally has created un-
disguised uneasiness concerning the
market position.
4 Much has been said and written con
cerning the liquidated state Of the
market. The opinion has been voiced
time and time again during the recent
sinking spells that much of the ad-
verse side of the situation had been
discounted by the rather abrupt de-
scent in market values. Yet it was
demonstrated quite conclusivelv during
tho week at different intervals that con
siderable weakness still existed in the
market superstructure.
As the result Of these unpleasant
disclosures the immediate outlook of the
market, it would be no exaggeration to
say, Is more confusing than ever. 4
number of interesting questions were
developed as a result of the week s
operations. Some of these would be
difficult to answer with any degree of
certainty. Tho first of these would
include the knotty problem whether the
existing level OF market values dis
counted a period of business depression
and readjustment, which just at the
moment seems to be inevitable. This.
ut lenst, is suggested in the credit
strain. which still remains very much
In evidence notwithstanding the wholly
artificial quotations for call loans.
From a more direct market viewpoint,
or to a condition which may be said
applies largely to conditions within il
self. still another question arises. That
Is. are there any other pools in the same
trouble which that OF Middle States Oil
clique found themselves unceremonious-
ly confronted with on Thursday? If so.
how many are there of them? Many
different versions were offered for the
bad break in that particular stock. 1t
Is pretty safe assumption. however.
to state that the principal cause for the
collapse was due to the inability of the
pool to secure additional credit. If the
loaning institutions found it compulsory
to apply such heroic measures in this
particular unfortunate speculative com
bination, it would seem altogether logi-
cal to assume that others are marked
for a similar dose Of the same un-
pleasant medicine, unless they are for
tunate enough to be in position to
mend their fences.
There seems to be a psychological
thought on all sides TO create the i'm
preston of a depletion Of supplies in
order to maintain the high scale prices.
This policy is so dangerously artificial
as to threaten sOonOr or later a violent
readjustment. Perhaps the market has
been getting ready for this unpleasant