The Sun and the New York herald., 1920-04-21
FINANCIAL NEWS
AND COMMENT
Stock Market Is Weak Again
as Stop Loss Orders Accel-
crate Decline.
MONEY DROPS TO 6 P. C.
Pool Shares Especially Heavy
as Cliques Withdraw Sup
porting Orders.
MONEY DROPS TO 6 P. c.

The decline In the stock market con-
tinued yesterday, and as prices got
lower the movement was accelerated "A
good deal by the execution Of stop loss
orders placed In the market by persons
who, having missed the top last week,
hoped to save something out Of their
now rapidly disappearing paper profits.
This naturally left very Lad impress
sion on the average commission house
follower. because It gave the market an
appearance Of being under very heavy
outside liquidation. But such was not
the case. The selling came mostly
from the bear contingent which has
gained the upper hand for the time be-
ing. and received the support of the
pool leaders, who, having dist .ihutcd
most Of their stocks last weak, backed
away from the market yesterday, With
the view Of buying them back later on,
1t was n case of professional specula-
tion and therefore did not worry the
ordinary trader, who had made up his
mind previously as 10 what the trend
of the market was likely to be for the
first half Of the year, regardless Of occa-
sonal setbacks.
it was because the market was so
professional that Wall Street could not
understand why it should go down, On
Monday, when prices started downward,
there was perfectly plausible excuse
In the high money rates, but those who
had put this argument forward to ac-
count for the weakness had their the
ories rudely upset yesterday by the re-
turn Of money to 6 per cent. With
this theory dissipated the Street nat
urally turned to the financial panic in
Japan TO justify their stand. naming
comparisons as to what might occur IN
this country under the same circum-
stances. But this argument was equal
~ as far fetched as the money eXplana-
ton. hTe best explanation of all was
the professional character OF Sle trad
ing. II was n case like the one OF
earlier in the month of the following
on the constructive side having become
too numerous to suit the pool leaders.
All 2uesses, therefore. as to- when the
downward movement was likely TO end
were considered foolish. for the very
reason that these movements do not
end until the bear party has demon
strated TO its own satisfaction that they
cannot put prices down any further,
Meanwhile very excellent buying con-
tinued In the leading stocks on n scale
down and there We're other parts of the
list which tried very hard to break away
from the decline. These were mostly
specialties. such as the sugar stocks,
Pierce Arrow and LackawGnna Steel, but
1t was a good sign nevertheless. The at
tempt to make any great progress, how
ever. in these stocks was not successful,
|
he under the circumstances. For one
thing, the market had gained entirely too
much momentum in Mondays session
and. for another thing. the average COM
mission trader WAS very cautious about
the up side after the severe shaking out
that he received on Monday II was very
noticeable again. in so far as the stand
and stocks were concerned. that the
main pressure centred again on the pool
issues namely stocks OF the type Of Bald
win, Republic Pan-American, &C 1t
was also interesting to note that the pro-
fessionals applied the same tactics yes
terday to the market as on all previous
occasions, namely, selling Steel common
10 influence bearish opinion.
Despite the Withdrawals from the
banks, money was easier from the out
set. Inc renewal Edlt was per N-H''
as contrasted with . per cent. on Mon
day, and new loans dropped to per
cent later in the day. Banks generally
were optimistic about tho money mar
Eet. which was rather significant IN
view Of the attitude taken by most OF
the professional contingent on the floor
Of the stock Exchange. report Of a
further favorable turn in the money sit
uation was received in the afternoon
when it was stated in authoritative
quarters that more shipments Of gold
were expected TO arrive here very short
" from Great Britain. There were
fufther Withdrawals Of the precious
metal for shipment to South America
but nothing important, There was moth
ing of special Importance in the foreign
exchange market