The New York herald., 1920-11-19
FINANCIAL NEWS
AND COMMENT
Stocks Have Another Bad
Sinking Spell-TwO Years
Progress Now Cancelled.
MONEY MARKET Is EASIER
Sharp Breaks Are Confined to
High Priced Issues-MOtors
Drop Continues.
MONEY MARKET Is EASIER

/ The stock market had another bad
sinking spell again yesterday. and with
that decline came renewed liquidation in
the commodity markets. The corn mar
ket broke to a new low record and there
were very violent declines In both wheat
and cotton, suggesting a resumption of
the downw ward movement that seemed to
have been checked prior to the publica-
ton of the banking statement two days
ago. which proved a boomerang in these
markets as we'll as in the share list.
The decline IN stocks In reality was not
half as violent as it had been on imre-
diate preceding days, but IL was prob
ably more depressing because II came on
top OF a similar movement that had run
virtually three weeks without the slight
est Indication of a rally-that is to say, in
proportion TO the decline that has taken
place. AS the market stood at the clos
ing last night the progress OF more than
two years had been cancelled. the aver
age OF the twenty Industrial stocks being
approximately 74.40.
AS has been the case all through the
decline, the market had to contend with
it's daily piece OF unfavorable news On
wednesday It was the banking statement,
and yesterday the market had It's atten-
ton drawn to the unsatisfactory condi-
lions that prevailed in the general trade
situation by the passing of the American
Il 1tytd q
There was nothing particularly surpris-
ing about the elimination OF the common
dividend, but the passing Of the dsburse-
ment on the preferred shares made
very had impression on the rank and file
OF the financial community. The COM
pany, according TO a statement that was
put out officially following the dividend
action, is not in such an unfavorable
position as had been runored generally.
but the average market followers rea-
soned that IL the company could not
afford TO continue dividends on a matter
of only s1.000000 OF preferred stock.
then these rumors must have some
foundation in fact
While the continued decline in stocks
was very depressing. the fact that the
decline continued SO orderly was en-
couraging nevertheless. There was
market every inch OF the way down. and
nowhere, except IN the case of high
priced issues. did the market break very
sharply. The decline in such stocks as
Steel common, for instance. was COM
paratively small. But such issues as
| Atlantic Gulf, United Fruit. the ma
rines. American International and others
broke literally wide open. In American
! International there was decline OF
10 points. The motor stocks continued
to decline, General Motors falling to
new low for the year. The railroad
shares were not hit as hard as they had
been on preceding days, but there was
1 heavy selling nevertheless in stocks of
the type of Reading. New York Central
and even Southern Pacific, which has
been holding aloof from the rest of the
rails because of special considerations.
| The money market continued to case.
the renewal rate dropping to per cent
and money loaning as low as s in the
last hour. against renewal rate OF 8
per cent. on the preceding day. For the
| first time in more than a month time
money was offered in any volume. but
It is understood that not all OF it was
placed. There was no demand what
ever for that class of money, as brokers
would rather finance themselves on call
money than borrow money at the pres
ent high rates for long periods. In
other words. il is figured that money Is
likely to be very much cheaper in the
next month or 30 and that In the long
run II VIII be wiser. perhaps. TO wait
until that declining tendency has been
felt I'm time money as well as In call
money. The tendency in the foreign ex-
change market continued upward, ster-
ling making further progress. but. as
before. the stock market did not pay
the slightest attention 20 fluctuations