The Sun and the New York herald., 1920-02-11
FINANCIAL NEWS
AND COMMENT
In Weak Market Prices Of
Stocks Give Way Under Re-
newed Pressure.
ALL INDUSTRLALS BREAK
Old Line Investment Rails Are
Thrown 0yerbOsrd-De-
cline Is Orderly.
ALL INDUSTRALS BREAK

TIE stock market was very weak
again yesterday, with prices giving way
sharply before the renewed pressure Of
The bear congia gent In face of conditions
which ordinarily Woul have favored
rally ia the leading speculative issues
The money market was substantially
easier. Indicating that funds wnich were
fsIea s4d from banks Lass week are grad
izzIly returning 70 the loan marzet- The
foreign exchange mArEei was SsAdy
ana there was a very favorable State
nent from its Steel Corporation with
respect 20 new bsOkingE. Yet in spite
% this the active indgtriaI stocks broke
arg'eiy All the nay around, with the de-
cline agra yaied again by Wholesale
dumping over Of the Old line investment
rails TalCh naturally had a bad effect
On s@niimenL already strained 20 the
breaking pDin, By tine markets. crash
40, week The deciiae was stiIl orderly.
with indlcAt.OnE q good buying In all
stocks On a scale dSWE. but u WAS very
disappointing u Wall Street 70 hnd that
credit relaxation had ~ little effect on
prices
Had the money situation remained IN
favorable Wall Street would have been
able ~ account very easily for the re-
neWed downward trend Of prices. But
with credit relaxing and with nearly all
the other uufayOFable COZ sideratlons
Wliah were supposed 20 have been IN
back of the downward mOvernett last
week ont n the way. wall Stree began
~ wonder whether or not the Des's we're
right in their contention that the market
had definitely entered into llqGidaung
period. siiH even the most cOnEer y~tive
found IL dISiciIit 20 recOnci'e this view
With the statement which was published
at noon b. the Steel Corporation and
showed an Increase of almost i.25e.ee5
tons In new orders The rsiirO1d sitia-
ZION was. NJ cOurEe. CIogfsd for tho time
being By the threat of a stri&@. hut even
this was hardly irnports NJ enough - ac-
count for such Wholesale selling as toot
place In the high class rails yesterday.
Altogether the days deye,op7n"et- we're
very confusing end at the closing even
the most op1m'stlc we're fer 30 admit
that the days market tended . heck up
ne y!ew ths, the brsak .u f7r-.zn ex-
change eyeniusiiy Is NEsly - have a
serious effect IN d9msgt.r bIs. Sss
The break in the rats was naturally
me most disgusting for the reason that
Wall Street had generally Supposed that
they had been lquida'sh to a standspn.
Al Of the old line tssies. including Union
Pacif-. AtrhisOh. r. madam Pacific, New
YORK. Central, S1.'aorn Par.H- and
Reading we're undo heavy pressure.
breaking from TO Ingch 40 ~ points.
In connection with the selling. however,
o( the rails, 4 va ieaJn-d 'Ha, a good
dsal OF yesterday.s iiqH.dstiyU came from
foreign sources T. tN' case % the in
dur,~ia!s il was jAst y'air dumping over
rtnckr for what aoy Tolid bring IN the
of11 market The figH PRICED specu-
latlyc issueE we're again hardesc hit,
vih Genera! Motors declining g'4-ply
nd Crucibie. American WOplen AMI all
'he rest which have played important
parts in the markets Of the last two
months down all the way from 3 20 20
points. Another very discoursgng fea-
tgro o. the day was the continued de-
cline in Steel ~ the closing Steel sold
down to 557s, and even AZ this point
there WAS no very pronounced indica-
ton Of rally.
The money market acted according 10
expectations. II was known that the
rI1-ey which was released from IN"
banks las, week was. being returned. and
the probability was that money would
80 great deal esier the rest OF the
IS eek, 70 that the relaxation at the out
.ef was not surprising 10 the rank and
SO Of Wall street TIE thing that sur
prised Wall Street was. that the stock
market paid ~ little attention to IL
Last week. when money was still high.
Professionals excused the market on the
ground that /, could not rally so long
aa money remained high. but with the
rate down around yesterdays hgure
ftou.c who are considered good judges
Of prices began % believe that there
vas something really wrong with under
lying conditions. There was nothing Of
interest in the foreign exchange market
Sterling was fairly steady all day and
most Of the other rates were featureless