Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-24
HESITATION MARKS
TRADING IN STOCKS
Many Factors at This Juncture
Which Make for Unusual
Caution

New York, July 24.--The Evening
Sun in its weekly financial review to-
day says: -
The hesitating and uncertain stock
market of the week, with speculation at
low ebb, has been representative of q
similar state of uncertainty and hcsi-
tation In general business While such
a condition is more or less seasonal,
there are many additional factors to be
teckoned with at this juncture which
make for more than usual caution,
such as strained credit situation. the
wholesale readjustmcnt of prices me-
ccssitated by the slow process of defla-
tion which the country is passing
through, and the disturbing aspect Of
European affairs which came into prom
Ninence late in the week. The securities
market has been looked to in vain for
any indication which il might afford
of its future trend and in turn of bust
ness prospects for the coming months.
with industrial stock prices within
striking distance of their low levels
of the year, the market in the last week
failed to move out of n narrow trading
area until yesterday. when heavy sell
ing movement carried prices down from
to 4 points This appeared to be a
bear drive executed at the psychological
moment when the trading element was
in quandary over tho Russo Polish
situation and was ready to follow any
leadership. ....
Railroad shares resisted the selling
remarkably well. but the position of
rails is somewhat different from that of
the industrials. Rail shares have main
tained price range well above the
years low figures and have given def j
mite indications that they are capable
of acting independent Of industrial
stocks, as well they may, under the
transportation act which, to say the
least, guarantees the carriers better
treatment than they have been accorded
in years.
No fresh disturbances in the money
market occurred to restrict speculation,
call loans ruling during the week at 5
per cent, which is not an abnormal fig
urC under existing conditions. The
high rate for the week was 8 per cent,
touched momentarily. The chances are
that the moderate money rate was ow =
ing to slack demand for accommoda-
tion rather than to any increase in the
| supply of funds. Wall street may
well argue that IL II is possible to Sc
cure ample funds now with which to
conduct a campaign of rising prices, the
chances will be still more remote a
few weeks hence, when the full strain
of financing the crops will be thrown
on the money market.
At the same time, since its rapid de-
cline of last week, and further easing
this week, which has more than can
celed the advance scored in the early
part of the month, the stock market has
given evidence that it is fundamentally
in strong position. In view of the
disturbing tenor of news, professional
operators have been able to make but
| little headway in forcing prices lower
There has been the threat of a general
railway strike, acute weakness In the
sugar stocks, a demoralized foreign ex
change market and talk of another world
war, but the market has not shown
serious weakness.
1t is interesting to note that Wal
street estimates place the aggregate OF
! brokers' loans at only about 5000 900,
600, which is some 40 per cent under
] the total of last fall OF equal signifi :
canoe Is the fact that there has been
contraction of 1910, 1853 900 since tn,
first of the year in loans secured by
stocks and bonds for all reporting mem =
Der banks in the Federal Reserve sys.
! tenn. 1t cannot be said that the stock
market is placing an unfair strain on
credit facilities.
Because of the transportation situa
ton, il Is believed by bankers that the
/ volume of credit needed this year fol-
financing the crops will be larger than
usual. There has not been enough i'm E
nvement in traffic conditions to per
nit of a normal movement of crops.
Commercial and industrial credit
requirements may be expected to be-