Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-31
RAILS STRONG IN
L|FELESS MARKET
Weeks Severe Decline a Body
Blow to Promised Summer
Bull Swing

New York. July 1.-The strength oi
the railroad group was about the only
redeemablc feature of today's lifclcss
closing stock market. Altogether. price
movement was fcatureless, representing
little else except the familiar week END
evening up operations Of the profes
sional trading element. Desultory GOV
cring and moderate profit taking in the
industrial shares produced the same
mixed and uneven movement in this
division as witnessed in the preceding
session. but fluctuations were confined
to narrower limits. In brief, there was
a general disposition to mark time until
the Interstate Commerce Commission
hands down the rate decision, which is
expected next week.
Hopes of summer bull market were
given a cruel body blow as result Of
the weeks severe and unhernlded de
cline. The semicollapse of the specu
lativc structure furnished an additional
convincing but painful reminder Of the
utter artificial caliber of the brief for
ward swing Of fortnight ago. No
doubt confidence in the market on the
part of the general public has been
badly shaken. 1t Is going to require
some mighty persuasive argument to
get the average marginal operator to
nibblc again at the bait. until II is
proven conclusively the crop movement
question has been entirely eliminated
as market factor.
When the fact is taken into con-
SiJaratia,, hot Wall atr ha. -ranti-
cally been doing business on a call money
basis. 1t is little short of remarkable
| the market level has stood up so well.
At different intervals within the last
two weeks there has been an apparent
easing of money rates. which. however,
| in each instance proved to be more
superficial than a reality. This was
confirmed in the almost vanishing of
time funds. On the top of this it was
| realized maturing time loans next month
and the one following can. from all
indication, only be renewed in coll
funds.
Measured from unbiased viewpoint
such a condition would logically fore
shadow further contraction in the
! volume of Wall streets business. Some
however. seem to feel that in view of
the general sackeniug of business. the
quarters would give wider accommoda-
tions for stock market purposes.
Although slowing down of business
activity already has been discounted in
the extreme low level of security values.
yet. on the other hand it must be SEN
siby appreciative of the futility of at
tempting to attract any considerable out
side following, when each succeeding
| advice from the important commodity
and industrial centers points to increas-
| ing reactionary symptoms.
Taking Governor Harding's optimistic
views on the credit situation, in so far
as it pertains to the crop movement
financial operations. as a criterion. it
is fair TO assume that perhaps the pre-
diCted fall disaster in business may be
averted. 1t is pretty certain even now,
if there should be some collisions, no
such panicky conditions as prevailed in
| 1907 are apt to develop. The excellent
Federal Reserve system. which many
seem prone to criticize, largely because
of selfish motives. will prevent u re-
currence of several elements of dis.
turbance. One of these. the suspension
of currency payments. which created so
much hardship thirteen years ago, can
not occur again.
Recognizing the prevailing. con hicting
and confusing currents with which the
general situation is heavily charged,
makes it rather easy to overemphasize
the uufavorablC aspect, yet all accepted
signals aud signs point TO the necessity
OF employing the greatest discrimina
tiOn and caution in contemplated market
ventures.