New-York tribune., 1920-12-14
Heavy Selling
Sets New Low
Market Prices
Session One of the Busiest
of Autumn, With 4Ol
Stocks Changing Hands;
Close at Lowest Point

Unremitting selling all through the
trading day yesterday carried many in
dustrial stocks to the lowest levels at
tanned thus far in 1920. The decline
was persistent and remained unchecked
up to the closing sale. Four hundred
and one stocks passed from sellers to
buyers in 1877 500 transactions max
ing the session the busiest one this
fall
The writing down of stock market
values affected all groups Of stocks.
Southern Pacific and New Haven,
among the railroads, were sold at the
lowest quotations of the year.
The average Of thirty representative
industrial stocks tumbled to 1857, a
new low for the year, compared with
1898 on Saturday, and that of twenty
typical railroad stocks fell from 62.70
to CLOS. The weakness in securities
was similarly expressed in the bond
market, and the average ten industrial
bonds somersaulted to new low
mark.
In the commodity markets there was
more irreguarity. Cotton quotations
slumped from 81 to 81 points, closing
at the minimum quotations. The reac-
ton in prices of the Southern staple,
however, was due to special cause
the publication of the final government
crop estimate of 12'987,ooo bales,
grain market, there is fortui-
tous linking of bumper crops and
decreased demand for the product The
Liverpool market reopened after the
regular close to permit trading in
light of the crop estimate, and
nrices shrank from 40 to 81 points.
sugar prices yesterday were the low
st of the year, and in the coffee mar
iet December contracts sold only 81
POINTS above the years cheapest quo
-ation On the other hand, corn and
cheat prices, which were weak last
week, jumped upward yesterday on
els. Wheat quotations were up from
2A and ga cents bushel, and corn
advanced from rs to 21s cents
The lack of siren. h in the stock
market was attributed to no fresh de-
velopment in the news of tie day, but
rather to the further expression Of
forces already at work. Yesterday was
The final day to sell ~ecurities in the
regular way to get cash for Federal tax
payments due tomorrow. In view of
the ex' auston of the usua' borrowing
resources of many taxpayers, they
found it necess. Y to get in funds for
).
| On previous occasions. earnings were
usu~lly SO large that tie payment Of
taxes involved no question of raisi &
funds for this purpose. Much of the
selling to raise money to turn over to
the Treasu. vas delayed as long as
possible because until few days ago
many still hoped that the date of tax
payment would be deferred in view Of
the prevailing conditions in business
and in the credit market. There were
again other reasons for elling too.
Much of the liquidating was done by
individufs s in distrc-s, who no longer
could carry their speculative commit
ments. Some of the stock dumped on
the marketplace originated from So
called insiders who desired cash to
lend to the corporations with which
they are closely identified, where they
are in need of a su. element to their
own credit resources. Then, too, there
was unquestionably quota of
frightene d selling from individuals
seized with fear because quotations
were Iro pping. And finally the down
ward movement VS. accelerated by
short sales hy speculative operators in
quest of a further Decline
There was slightly easier tendency
in the foreign exchanges, md call
money was lent ;S Z per cent all
through the day. Although some were
inclined to regard the action of the
market as an indication of further
uLfayorable develc pments in business.
a Eart of the decline was due simply
to the pressing neeCs of the moment
OF sellers in quest of cash with which
| to meet current Oh1ipationS