The Washington herald., 1920-08-10
Mornings Trading Carries
Many Issues to Lowest
Prices in Years.
MOST STOCKS RECOVER
Wall Street Appears at Loss
To Properly Interpret
Crop Report.

New York, Aug. s.-Report that
the Russians might grant a truce of
tour days checked another wild sell
ing movement in Wall Street this
afternoon. Declines Of the day had
run an average of and points
in active issues. and the prices
touched had not been seen before in
three years in many stocks. The
rally caused most issues to recover
about half Of their losses. In few
there was complete recovery.
Early in the day Sterling broke
u cents and all continental ex-
changes were weak. Even Argen-
tine exchange turned weak. Money
renewed at per cent and the call
rate dropped to in the afternoon
in spite of the bad bank statement
Of Saturday. The market closed IN
the midst of a rally.
The crop report was not made
public until after the close and while
good -one was expected the Street
was much embarrassed as to how it
The official crop report confirmed
all of the optimistic forecasts re-
Earding il. The government says
therewillbe more than 5000, 100000
bushels of corn and 100000. 900
bushels of oats The combined
wheat crops will be $4,000. 900
bushels, or about 145,O0O, 900 less
than last year All the crops re-
ported on. however. make a totaI
but slightly under that of last year.
the deficiency of wheat being made
up by the grains.
This means that the railroads
will have all they can handle and
that it will be difficult to finance
the crops this year in view of the
neglect Of the Federal Reserve
Board to force a reduction of bank
credits earlier in the season. Thus
The country Is to he injured by its
own prosperity. II is this certain
congestion Of freight and credit
during the crop moving period that
is hurting the stock market fully
as much as the Polish situation.
The Polish situation happens to be
the exciting cause at the moment.
hut il would be far less damaging
IL the freight and credit congestion
were not in everybOdy's mind.
steel.
When Steel broke through S4-a
price il had not touched since 1911,
when its low was 80 hit set off
a lot of stop-lOSs orders. The down
ward sweep was so sharp that
many persons cancelled stops lower
down and sold at the market. Usu-
ally a market like this brings in
vestors to Wall Street, but this
time they are lacking because so
many OF them have severe losses
IN stocks already held.
Although the Baldwin contracts
with Poland have many times over
played in the stock market they
were still useful today both in
breaking and rallying the market.
In the morning Baldwin was the
first 20 90 down and when the
truce was rumcred it was the first
to start a recovery.
Although there is no reason for
thinking the long rumored Chemicar
merger is on. the tocks acted bad
ly today.
American International was
amons the weakest on the list SELL
ing down to S. =. II recovered all
this loss in the late rally.
The Guggenheim stocks showed
particular weakness. Utah breaking
nearly points. smelling and Lead
about ,. with but slight recovery.
anaconda declined slightly. but re-
covered its loss while Cerro de Pas
co came back strong on the rally.
Til" heaviness Of Smelling in par
ilcular would seem to indicate that
We Mexican situation has not really
improved very much. Action Of
american Petroleum confirms this
view