Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-16
BEARS GUNNED FOR
VULNERABLE SPOT
Whole Market Was Unsettled
and Nervous Under the Heavy
Selling Pressure
OILS WERE HIT HARD

New York. Jan. 16.-The New York
Evening Sun 5 closing financial review
today says:
The bear element continued to seek
out vulnerable spots in the share list
today and succeeded in driving down a
number of properties. Conspicuous
weakness was confined largely to few
of the oils and new promotions, but the
whole market was unsettled and nerv-
Gus. particularly in the forenoon, when
the selling was very heavy.
Middle States and Transcontinental
Oil We're forced down to new low figures.
Royal Dutch and Shell Transport. two
| oil stocks which heretofore have es-
capped attack, declined extensively
around midday under concentrated sell
ing, yielding four to five points. MeXl-
can Petroleum made new low on the
movement, going under 1913.
The steelS. equipments and coppers,
however. offered splendid resistance and
were well taken on all reactions. Bear
propaganda has been unable to under
mine confidence in securities of this
class because of the expanding business
which thes" companies are doing at ad-
vanCing prices.
The call loan renewal rate was s
per cent. a relatively low figure. Early
in the afternoon there was a further
easing of the call rate, and while this
served to discourage aggressive bear op-
eratiOns, it did not promote any great
demand for stocks. The shrinkage in
market values has progressed sufficient
LIZ far. especially in a number of the
Uyerboomed oil shares, to have seriously
injured many speculative accounts, and
has either forced their owners out of
action or caused them to withdraw from
the market altogether.
There was nothing in the day 5 news
to account for the further slump. II
was simply a case of the market cor
-acting the evils of overspeculation in
which il INDUCED last year. The bear
element is having its inning for the first
time in months. and the success so far
achieved has given it great confidence.
Under such circumstances the selling IS
bound to be overdone sooner or later.
Sentiment was as bearish today as II
has been at any time this week, al
though a technical rally. at least. was
looked for by many observers.
With prices on the down grade the
street was in a good to make the most
ont of every bit of unfavorable gossip.
1t was suddenly remembered that our
foreign trade is jeopardized by the
abnormal exchange situation, that ire
mepdous sums of money have been tied
up in an unparalleled number of new
Rotations of questionable merit and no
loan value. that at the same time the
railroad industry has been unable TO
raise necessary funds and that we may
have TO extend billions Of dollars Of
credit 70 Europe.
None Of these ideas were strikinsly
new. but they have been affording
splendid background for the recent sell
ing Of securities. The foreign exchange
market was again weak, sterling yield
ing about u points TO $3.50. German
and Belgian exchange went to new
lows. On the theory that foreign trade
would soon dwindle bears attacked the
shipping stocks and caused considerable
weakness in the Mercantile Marine
shares.
The cali loan rate dropped TO 6 per
cent in the last hour. Time money.
however, was in scant supply, s to Sl2
per cent being bid without eliciting any
great amount Of funds.