Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-07-13
SLUMP IN |NDUsTR|ALs
CHARGED TO CONGESTION
Dlarkct Is Weak, Rails Suffering
With Many Other Well
a. known Securities.
NET LOSSES wEKE GENERAL
FURRY I'm Motors When Street Got
~, Report That Ryan Had Retired
From StrOmbcrg Board, but Re-
action Quickly Followed.
ny nItOADAN WALL.

,nnNEW YORK, July l2.-Long stocks
Sold last Friday under cover Of a
made their Influence felt In Wall
street today when the purchasers
had to pay for them, Prices de-
opened with a show OF strength with
Reading Al the head nf the list In
linsirials faded from the opening. In
yielded and the market closed weak
and active. with material net losses
IEycrywhcrn.
: This setback TO the stock marke,
Is due. 20 reasons well known. The
1nost important ole Is the fact that
PROPS are going 10 be so big that Il
severe credit strain this fall is Ger
lain Tho banks know this and
are warninf; their people out Of the
snarkct. telling them to take advan
daSe OF ever show or strength 20
I'ct cash. The credit strain wiil be
Ifevcrc chiefly because o! the congea-
Hon on the railroads. The conees
Won on the railroads ~ due Ia the
[SommissiOn TO advance rates SO as
| 10 cnablH the railroads 10 make
terms with labor. This congestion
H. causing "a congestion OF bank loans
am! the refusal Of the Federal Re
I5ervc Eohrd TO force industrial banks
puBinoss makes matters vastly worse
Money May skyrockct.
This is an old story but untor-
.tunatcly IL IL 81 story that must he
repeated over and over becauac that's
.'l.t. The responsibility for the de-
Eruction OF business in the United
states should be placed exactly where
,rore inan conservative
MoLt$ did not 20 above per cent
J, ,.r9I hsion3! opinion AZ 10 what rats
WI! prevail III the near future range
from To 40 per cent. The & Der
cent rate Is what one Of the Largest
tntn, houses expects to see be
por cent rate Is what one OF the big
po9l operators says VIII be charged
before October.
- II rs prctcctly SAFE to advanc. tlic
rnilroad stocks under pooi man!Du.
ia'Icn because owners 81 those stocEs
49, thein AT such hiHh prices that
Sh;nr. IVES no danger OF meeting any
Ssil!hG OF Importance. Hut for every
-sh"rc 81 railroad stocks purchased
ncr" was AN Industrial stock sold
~ = hedge The rails thus bought
Joulp be liqu!dhtcd al losgos ana Tho
I,pethllph w0uil still bc profitable
90 renE2t 'i iac great decline Of tho
1'ff"r IhS s,,,,, The awkward feature
iMnu.ir!nl stochs sold for long a..
count Even yet, there is 10 ahor,
-lai"rcst OF Importance
Iiurry la Struu,brrr StocLs
When announcement was made INN
-cNiIan Ryan nad retired from tho
.S;ssromberg board, of which he was
'tuuch advance OF the stock OF ncn-.
~ seven roin;s. There being no or.
iciII announcement that S,romhctg
-nad been purchased by on. IL ths
-niE mote: COMPANIES. the street he
-san se,iihT ,hc stock. and II broke
yhoFc IMAM MA" points This caused
breaks In keplogIc. vanadiu,n AMI
Sohsei!datcd Textile. with all OF
r-hlch securities Mr. Ryan's name ma
ne.n associated with more or less
justice Az OF these Issues closcd
~ me bottom and wcnk
hat hurt The steel stock moro
nun any one -oLhor think-srwas ga re-
loft mar large mills might clos.
down because they are ciuttcrcd M
WIN finished products that IL viii
Sahc thc railroads "A month 10 clear
one steel interest denied il. but The
selling was already In progress nnd
could not be checked
Mexican Petroleum. o,J
nu iiii anu West Indies fen under the
influence or sales caused by "A re,
pott OF labor troubles at TainuIco !,
good deal OF attention was paid -,
me Ehorthge OF coal, but that is only
part OF the trouble due 10 general
iTe!Sht ana credit CONGESTION "