The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-23
FINANCIAL NEWS
AND COMMENT
Stock Market Drags Through
Another Dull Day Without
Definite Trend.
MONEY JUMPS TO 10 p. c..
Securities Drop About IL
Point at Maximum Decline
on Gary Speech.

Tho stock market dragged through an
other montonous session In Wall Street
yesterday without furnishing any defin-
lite evidence OF trend in either direc-
ton. Tho Street had looked for an inn
portant test OF the market position as
stocks had about reached point where
any further selling might bring about
resumption of the liquidating movement,
but the day passed with stocks still in
that position In spite OF the fact that
leading issues showed fractional net
gain at the finish. Interest was divided,
in so far as the news was concerned, be-
tween the British strike situation. which
was more encouraging, and Judge Gary's
speech on iron and steel conditions. which
was decidedly bearish. Between those
two considerations stocks got nowhere
in particular. The fact that the market
held well in the face Of unfavorable
news was decidedly reassuring, but, on
the other hand. the fact that stocks
showed no disposition to move out of the
trading rut, in which they have been
lodged so long. was decidedly disappoint-
Ing.
The Street argued again that the
market must be in very strong techni-
cal position, which is undoubtedly true.
il it could hold up in the face of Judge
Gary's speech on steel conditions. the
British strike situation and 10 per cent.
call money, but, on the other hand. all
efforts to put stocks up proved unsuc-
cessful. just as did efforts on the part OF
traders to put them down. There was
perfectly logical excuse. however, for
stocks not going up in the fact that news
developments prevented any general ex-
preston of bullishness. But in that
connection Wall Street is wondering
unrcsponslve to good news when it does
come as It Is Just now o bad news. The
Republic Steel quarterly statement has
furnished another Instance CT the market
disregarding the news, but there was in
that case O. perfectly plausible explana-
ton as the statement. from the long dis
lance viewpoint, was not encouraging.
AS was the case with the Lacknwanna
statement the important thing was the
falling eff Of tonnage and not the in
crease In earnings.
The maximum decline in stock aver
aged about half point or so In the lead
ing issues on the publication of the Gary
speech The tone OF that speech was
really unexpected. as the Street always
looks for an optimistic statement from
Judge Gary. Steel commons decline was
only fractional, however from the pre-
ceding days closing. Likewise the rally
in stock, which followed the early de-
cline, was only fractional. but 1t did re-
suit in net gains for most stocks, as
stocks had closed on Thursday vir-
tually at the bottom. In other parts of
the list there was special activity,
namely in the public utility issues. which
have been very strong and active re-
Gently Also there were special drives
conducted during the day on Individual
groups. There was particularly sharp
drive for instance on the tire and rubber
stocks, but for the most part it was un-
successful. After stocks OF that type
had declined a point or so there was a
sharp rally that carried them back TO
about where they started downward.
The sudden jump of money to 10 pei
cent. was distinctly surprising to the
financial community, which had figured
that the present series OF money diff
culties had passed with the large with
drawals of the week. In banking circles
It was stated that the furry was an
aftermath of the big payments which
were made on October 10 and which In
cluded the payment of the Anglo-French
loan and huge shifting OF Government
funds in connection with maturing GER
af Indebtedness. In that con-
nection the Street wondered how the
bank statement would work out to-day.
II has been expected all week that the
statement would be favorable. lnasmuch
as the encouraging part of the financial
transactions were not included In last
weeks statement.