Evening star., 1920-11-17
STOCKS ARE HEAVY,
PRESSURE GENERAL
Market Very Nervous, Some
Breaks Take Issues Under
Recent Low Records.
BY STUART p. WEST.

Recent Low Records.
! BY STUART p. WEST.
WALL STREET. New York. Novem-
her 1.-THE stock market yesterday
md the day before had given many
>igns that the Observation-Disclosures at
he close of last week-was passing.
Liquidation has seemingly been checked
IN the greater part of the list. and the
street was beginning to pluck up q
certain amount of courage. This ten
dency to returning confidence was
rudely upset by the statements printed
this morning regarding the conference
"f leading bankers held after business
hours yesterday afternoon.
If there was any idea that this gath
oring was to do good. was to offer re-
= assurance in delicate situation. 1t
was the worst boomerang that the
financial district had experienced in a
very long while.
Bears Take "Cue."
1t was all very well to give out that
the banking structure was sound, that
the country had not been overextend-
I'd. as in other periods which have
eventuated in panic. But at the same
time the aggressive hear party was
virtually told that it could go ahead
without fear of serious opposition. be-
cause the bankers were expecting
continuance OIL the llQulQaIlOn DOtn IN
commodities and securities.
This message was good cheer to
SPECTATORS, for the decline came just
at the moment when they were in
clined to suspend their activities.
fearing that they might have over
stepped the bounds.
The direct result was that after an
hour or so of uncertainty following
his mornings opening violent bear
attack was launched. first at one group
"f stocks and then at another. until
The whole market was started again
upon the downward path.
Trade Readjuxtment.
The days experiences furnished
complete disproval of the contention
making that the collapse on the stock
exchange was the result of tight
money. The call money renewal was
fixed this morning again at per cent,
hut by noon the rate had fallen to z.
end in the last hour it got down to s.
There was no question after this that
The peak of the money strain SO far
as Well street was concerned had
passed. yet the downpour of liquida-
tion continued absolutely oblivious of
the fall in the interest rate. No clearer
testimony had been given that it is
reflected in the market and has SO
far outweighed every other considera-
tion.
Leaders Very Weak.
The break was particularly violent
in stocks like Baldwin Locomotive.
American Car and Foundry and Read
ing, which had been standing up
among the best. Steel common was
taken readily every fraction down and
SO was Southern Pacific. but the cop
pers were very weak again and rail-
way shares with one or two excep-
tions. notably the Eries. gave way
as easily as anything. Here the in
f1uence of foreign selling was again
visible. the same foreign selling
which was chiefly responsible for the
improvements in the exchanges.
Cotton options were drawn along in
the decline. The grain markets were
not 30 much affected and sterling ex-
Shange SO far ran counter to the
gloomy surroundings of the day that
il added another 4-cent gain to its pre-
vious advance of the week. At to-
days top sterling was up over 10
cents in the pound from where it
stood at the end of last week. and
over 13 cents from it's extreme low.
The weakness in American Inter-
national Corporation stock. which
broke out again today. was traceable
to the reports circulated about Wall
street to the effect that at the meet
ing Of the directors to be held tomor-
"" oAScAhOoh tu0 per cent OlNl-
dend would either be cut or passed
entirely.
A meeting of company officials was
held yesterday and denial was made
of the report that the company was
10 be reorganized and a thorough
.ver, this rumor persisted today. Amer
lean International got into new low
ground today. selling below so.
Wire Trouble Plant.
Host Of the big wire houses which
have western connections were COM
planning of the interference with COM
munication caused by last nights
storm. Out of seventy-five wires
which go into one section only twenty
were in working order at the opening
Of the stock exchange. and these were
so congested that their efficiency was
impaired. Not until afternoon did
re first two hours showdown in stock
-schange business.
Two Of the big sugar producing
%ompanies declared, dividends today,
one paid the regular quarterly dis
blrsement on the common, but left of
the extra, and the other reduced its
dividend rate. The South Porto Rico
company. which a it's last quarterly
meeting declared ) per cent diyi-
dend and per cent extra. today de-
'idred only the regular = per cent.
The Cuban American Sugar Company
PIT its new subdivided shares on
81 basis by declaring a dividend of
i a share.
Chandler Motor directors meet to-
morrow to act on the dividend, and
those in position to know state
positively that the regular rate of
$50 will be declared. Two groups
are bueking each other at the present
time in Chandler stock
The curtaiirnent in the automobile
industry. according to man who has
Just returned from a trip through the
middle west. has affected the COM
panies making automobile parts so hard
tnat the situation in some of them is
called pitiable. This is particularly
tite in Ohio. This man declared that
II was now possible 10 go out into the
open market and buy the component
parts which go to make up an assem-
h!ed car and 10 assemble these parts
1t price much cheaper than the same
car could be bought at retail