Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-20
MARKET SHOWED
y MORE RESISTANCE
Further Weakness in Specu.
lative Issues NeutraIized by
Firmness of Rails

:. New York, Nov. 2O.-Further heavy
liquidation In the industrial specialties
was neutralized to some extent by the
irner tone of the investment rails in
today's closing stock market. As
naturally would be expected after the
weeks drastic and violent declining
movement, fluctuations were very ir-
regular and feverish. The general t0e
OF the market, however, was greatly
improved, which apparently was due
very largely to the familiar week end
covering operations. There were fewer
weak spots; in fact, apart from Cru
points, and Sears -Roebuck. which fell
. points, the general list displayed much
better resistance. Baldwin Locomotive
was again under pressure, making a
new bottom for the movement. While
the market showed signs of hesitancy
on the rallies. there was no recurrence
Of the extensive liquidation witnessed
In the preceding sessions.
Not only the layman but also some
OF the shrewdcst judges are puzzled to
account for the constant stream of liqui-
dation which the market has encOun-
tered since election day. Calculations
OF some of the most experienced market
readers were completely upset by the
weeks performance. A week ago many
were confident in the belief the market
was near or scraping bottom. Every
body was wrong, for not only we're the
lowest levels of the year registered, but
in many of industrial stocks the lowest
prices in three years and over were
reached. The semidemoralizntion was
not only confined to the. securities but
extended likewise to nearly all the com =
modify markets, in which markets there
was an equal slaughter Of prices.
What does It all mean? Nobody as
yet has venturcd to offer satisfactory
explanation. Numerous excuses have
tcen offered, but none seem to fit the
bill satisfactorily. IL the smashing of
security values is reflection Of the
unsettlcment of the business situation
aud :he marking down of war prices to
a normal level, then it Is for the first
time in the history of Wall street that
such radical change in economic and
fundamental conditions has not been
anticipated by the security markets.
In SO far as Wall street Is directly
concerned there is no doubt of the thor
ough liquidated condition Of the mar
ket. This is confirmed in the wholesome
reduction in outstanding brokers' loans
Ever since last November there has
been almost an uninterrupted liquida
tion of speculative accounts. The ques
tisn then naturally arises, what is the
source of the almost endless liquidation
which the market has met since elec-
ton. A number of close observers stated
yesterday that not since the Barring
panic have they ever witnessed such 0
mighty and constant flood of liquida
tion. There are reasons for supposine
that quite good deal of the stocks
which have been thrown overheard the
last fortnight came from sources II
business and commercial lines, and in
dustries as well, because of the impera
tive need Of funds. which were no Longer
nels. While this undoubtedly made up
large part of the selling, there still re
mains mysterious source which. up t
this time, is very difficult to determine
No end of excuses and reasons cOult
be offered separately and collectively
which would give temporary satisfacror.
explanation for the big downward swing
The badly strained foreign and domesti,
credit situation, the growing depression
in business with the increasing mortal
ity, the cutting and passing Of divi
depds. the greatly reduced earning pow
ers Of the leading industrial concerns
the widespread price cutting movement
and n host of others could be recited
and columns of reading matter woulc
not tell half Of the story. The duration
of great downward swing is as Difficult
to measure as a wild bullish upwar,
movement. Both invariably run to ex
trcmes. 1t is in the last possbilit,
that some hope is to be derived of al
early termination of the current sinkin
markets. This much is certain, that an,
one with the means can safely buy tn
leading issues at the going prices. Will
they mey not be able to get the bottom
figures, they will have great satisfaction
not many months from now, for thei
Judgment and temerity, not to speaI
of profits. Values cannot be destroyed
They may be unduly depressed or in
tlated, but sooner or later happy me
dium Is reached.