New-York tribune., 1920-07-29
Stock Market Is
Still Unscttled:.
Money at Up. C..
Harding, of Federal Reserve
Board, Takes Hopeful
View of Credit Outlook:
Sterling Exchange Breaks

Little happened yesterday to dispcl
the cloud of gloom overhanging the
stock market. Those who had hoped
for continuation of the short cover
ing movement begun in the closing
hour of Tuesday were doomed to dis,
appointment. Some short covering APP
peared in the forenoon, but it was
more than offset by fresh speculative
selling and a dribble of liquidation.
Stocks again suffered from the absence
OF buying power, which has made it
so easy this week for the bears to
operate successfully.
Wall Street, by reason of the market
wise developments this week, has given
up talking of a sustained rally in
speculative securities, and as things
now stand the majority of the stock
market following would probably be
satisfied if stocks were to do little
more than hold their own. With re,
ports of business and industry becom-
ing more bearish from day to day the
feeling is rapidly gaining ground that
further readjustment of security
values to the new conditions is to be
expected. Brokerage houses which a
week ago were advising the conserva-
of moderate rise have changed their
position since Monday and in many
cases are advising clients to get out
of the market and await DEVELOPMENTS.
The majority of standard stocks
closed yesterday at prices under the
closing of the preceding session. The
market, however, was not under such
heavy pressure, and the total volume
of business done at the exchange
dropped to half that of Tuesday, when
more than a million shares changed
hands. This indicated not only ces-
sation of liquidation, but reflected a
more cautious attitude on the part
of the professional element with re-
on the short side. 1t is we'll that the
public did not come back into the
market a few weeks ago when the
Street was doing all in its power to
attract an outside following. If it had
the market would be in a much worse
position than it is to- day.
The quarterly statement of the
United States Steel Corporation was
looked upon as an unfavorable exhibit
in some quarters, since the increase
fell short of recent highly optimistic
predictions. Actually the corpora
tion did remarkably we'll for the three
months period, considering the diff
ficulties with which it had to contend.
4l1u ~ iIul Ueell 1OI tHS clIoCC Oh the
outlaw railway strike upon operations
the figures would have been consider
ably above what were reported. 1t
would have made little difference to
the stock market, however, for good
news is of little consequence as a mar
ket factor in these days of gloom.
One might have expected the reduc-
ton in the rate of call money from
8 to per cent in the afternoon to have
been made the basis for a good rally
Some stocks did show better tone
temporarily, but the buying lacked
vigor and was not followed up suf-
ficiently well to maintain prices. Steel
common closed at SIN, a new low for
the year, which was also the bottom
price for the year.
The optimistic remarks of W. P. G.
Harding, governor of the Federal Re-
serve Board, ought to be refreshing to
Wall Street He takes an extremely
hopeful view Of the credit situation
and stresses the fact that improvement
in the railroad situation in the Middle
West has released millions of dollars
in "frozen" credits.
The foreign exchange market was
unsettled again yesterday and sterling
broke more than 8 cents in the pound
Offerings of grain bills were said to
he heavy