The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-13
FINANCIAL NEWS
AND COMMENT
In Last Hour Violent Break in
Stock Market Liquidation
Extends Through List.
HITS MARINES HARDEST
Motors Make Fair Resistance
and Money Situation Is
Not Changed.
HITS MARINES HARDEST


market to attempt anything like a rally
as long as so many weak spots re-
manned TO be uncovered In Individual
groups. 1t was equally surprising to
Wall Street yesterday to see stocks
break so violently in the last hour. The
expectations had been that the traders
would continue TO uncover these spe-
clalties with the aid OF miscellaneous
selling and a certain amount of real
liquidation, but no one had looked for
this to spread to the general market as
it did yesterday. However. as these is-
sues began to weaken one after another
the liquidation gradually spread to the
whole market. and in the last hour
stocks were literally thrown overheard
without the slightest regard for value.
1t was the most urgent liquidation that
has been witnessed thus far, and there
was absolutely no discrimination what
ever between various groups of stocks.
as has been the case heretofore. Even
the high grade railroad stocks, which
have been considered immune from the
selling. went down along with the rest.
The broad facts in back OF the market
were much the same as they have been
all the way along. and there was no
question as to assertions made in COM
in fact, the great majority-were selling
below what they were actually worth.
But against this there was absolutely no
buying power whatever, except in so far
as bargain hunters were concerned and
such support as was put into the market
by bankers in an attempt to stem the
tide. There was no doubt either in the
minds Of conservative people that at the
low prices stocks have discounted The
worst that can happen in the trade re-
adjustment. but just as the market al
ways swings upward too far in the midst
of the enthusiasm of bull campaign,
so it always swings downward too far
in the midst OF wave Of pessimism
such as is now sweeping the financial
community. AS indicating that the mar
ket was OVERRIDING the pessimism the
averages at the close last night had not
only cancelled the entire progress In
gone several points below where tina.
campaign had started.
Probably the most disheartening thing
to Wall Street yesterday was the man
ner in which the high grade railroad
stocks were thrown overheard regard
iessly. Reading, which had been one of
the bac&bones of the whole market, broke
about points in as many minutes in
the last hour, and along with Reading
came an outburst of selling In the entire
railroad list. OF high priced and low
priced issues alike. 1t was mainly in
the industrial shares, however, that the
export house was in financial difficulties
persisted in spite Of the fact that 1t had
been officially denied. and this naturally
led to another wave Of selling dn the
hardest hit OF all. The steel shares
likewise gave way in the downward
In fact there was no group
whatever that did not give some ground
unless 1t could be said that the motor
shares offered fair resistance. Chand-
Ter Motors was one OF the shining spots
r this group. but against such strength
there was heavy selling OF Studebaker
and a number of others.
There was no change In the money
situation, and 1t probably would not
have made much difference anyway IL
money had got cheaper. The market
showed on the preceding day that stocks
'. ould pay no attention. to money. any
way, so no great amount OF attention
was given to that subject yesterday.
The rate for renewal was the came as
II had been during the earlier part OF
this week, but the rate did not slide
off, as was the case Thursday. It held
at per cent all day, although there
seemed to be plenty OF money available
all day. While money did not get
materially easier yesterday, there is
expected TO be a ray OF hope in to-day's
bank statements II is expected that
the deficit in the local Clearing House
statement will be wiped out, and that,
moreover, there will be a substantial
Improvement In the reserve ratios Of
the local Federal Reserve Board. The
foreign exchange markets we're fairly