Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-12
DRASTIC MARKING
DOWN OF VALUES
More Than 70 Per Cent of Last
Years Big Advance
Wiped Out
RAPID Adjust M EN- T

Today being observed asa legal holi.
day by most of the states, all the prin
cipal stock exchanges and commodity
markets were closed There was also
general suspension of business in the
financial district Banks and trust
companies were also closed.
The holiday was not altogether un
welcomed in market circles, because the
suspension of business will afford an
opportunity of making o calmer delib.
GRAFTON of the general situation, with
the possibility of the days rest tending
to check the further spread of selling
hysteria which apparently has attacked
holders of securities in all sections of
the country.
The extremely low level to which Sc
curity values has been forced within the
last three months would seemingly have
discounted the most pronounced unfav-
orable side Of the situation That al
ready in sight. and anything further
disturbing than already known that
might develop later on.
When the Federal Reserve Board in
November issued their ultimatum
| against further imitation of banking
credits, thereby putting severe crimp
in the unbridled specula tiou which had
run amuck through the length and
breadth of the land. no one supposed
the readjustment would reach such far
reaching ramifications.
De6atiou of credits in so far as the
Stock Exchange is concerned has been
on most drastic lines imaginable. The
effects arc convincingly illustrated in
the disturbing depreciation which has
been recorded in security values. Like
all great downward swings in the Stock
Market little discrimination was exer-
cised in the slaughter of values. Often
times it was necessary to sacrifice the
more seasoned standard issues in order
to protect those issues where the mar
ket position was more vulnerable.
What has happened. of course, is
now a matter of past history, but the
severity of the market collapse is better
appreciated from the fact that at yes
terday's close the average price of the
twenty active industrial stocks was ap-
proximately so points below the high
point established in November last
year. while the twenty railroads were
about - points under the high mark
made in May last year.
IN the remarkable bull movement Of
last year, the industrial averages moved
from 10. II TO 1892. n range of 40.47
points. This sensational movement
which centered almost exclusively in
the industrial stocks. was spread over
213 business days, or from February s
TO November 3.
The terrific slump since the latter
date has Cancelled approximately 20
per cent of the entire gain of the mem
orable bull campaign of 1919. The SO
called adjustment occurred in seventy
nine business days, little more than
third of the time required for the
rise of last year.
1t means in cold dollars and cents
depreciation Of approximately $3.50,
600, 900 in valuation of these twenty
active stocks from the high record
prices of 1919. This applies alone to the
industrial shares. and If the deprecia-
ton of the twenty active railroad
shares were added. the shrnkagC in
market value would necessarily reach
much greater. if pot alarming proper
tionS. While that Of the entire list
numbering nearly so stocks would
produce a staggering total.
Such a dra site marking down of mar
ket values would seemingly indicate a
complete accomplishment of the purpose
of the Federal Reserve Board in cor
recting the inflated credit situation in so
far as it applies TO Wall street and
Wall streets business.
| If the liquidation of bank credits has
or will proceed on a similar scale re-
garding other lines of business in which
there has been overextension of credits
through speculation it cannot be very
long before the equilibrium of the credit
situation will be thoroughly re- estab-
lished and every one can resume doing
business at the old stand in the good
/ old fashioned way.
/ There is little use of crying over split
milk. and little could be gained by max
4 ing extensive comment concerning in .
! dlvidual stocks or groups of stocks. As
/ figures are facts. the whole story of the
remarkable marking down of market
values on the New York Stock Elk =
change, as result of the overstraiued do :
mestic and international credit situa :
/ ton is told in the table printed else
where on this page.