New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-19
Trade and Finance
Developments of the Week
and Their Bearing on
the Outlook

Sioh VI inc StOCk market is proving
source of great disappointment. Hopes
of sustained improvement, stimulated by
rising prices fortnight back, have gone
a-glimmering, leaving behind gloom and
skepticism. The market, after its short
lived period Of ebulliency, fell away
sharply, and last week saw the wiping
out of practically all Of the ground
gained on the late recovery. All the
well-laid plans of the speculative pools
and cliques went for naught, for the
market hardly went far enough on the
recovery the first week this month to
make possible successful distribution. At
the end of last week the market follow
ing stood about in the same position as
at the close of June, with the difference
that then the trading element looked
forward confidently to general better
ment in the market, whereas at the mo-
ment the feeling is one Of doubt and
hesitancy, for the failure of stocks to
carry ahead consistently has brought
many accessions to the ranks of the
bears, and has also checked public par
ticipation just at time when it was
beginning to be factor of considerable
Importance.
The correctness Of the stand of those
who have steadily maintained that stock
speculation could not be successfully re-
vivcd under existing money market con-
dltions appeared to have been proved by
the events of the last week. Stock mar
ket troubles appear once moro to be
largely matter of credit problems
Money rates shot to II per cent last
week Meanwhile the Street was given
to understand from various sources that
industrial conditions we're extremely
arising out of the transportation block
AIDE. From the steel industry have come
reports Of the closing down of additional
producing units and prospects of other
suspensions if coal and raw materials
arc not soon had in sufficient quantities
to keep the mills running. But this was
! not all Other important industries, it
developed including the great automo-
tive industry, are feeling the throttling
effects of railroad and other troubles.
And on top of it all is the critical credit
position aggravated by the abnormal de-
mands of business and industry which
must borrow more and more from the
banks in order to finance goods held up
\ in ho hoe
ification, which combined have proved
too formidable an obstacle to be
hurdled by the stock market.
Stocks acted toward the end of last
week as if the sponsors of the recent re-
covery movement had given up hope Of
accomplishing much in a constructive
way, at least under existing conditions.
1t is we'll known that number of i'm
portant speculative interests who were
among the first to take to the bull side
have sold most of their holdings, and if
/ not selling stocks for the decline have
at least adopted do-nothing attitude
toward the market. This would seem to
presage increasing dullness and a stag
mating market until things look more
cheerful
Special pressure against the motor and
tire shares made those groups rather
conspicuous last week. Selling Of these
issues was based upon the unfavorable
IF IN ~%S~
lines of industry. In view of the indefi-
mite character of the reports current for
the last ten days, the following summary
of conditions in the motor industry, pre-
pared by the Cleveland Trust Company,
are of timely interest. The bank says:
''The last month has been marked by a
further curtailment in production at
passenger automobile plants. No uni
form plan of revision of original manu-
featuring scheduled for the year is being
followed but the average curtailment is
computed by authorities to be about IS
per cent. This is due to two causes
First, the difficulty of maintaining bal.
anced inventories owing to inability to
get steel materials shipped, and, second
to the falling of in demand for auto.
mobiles. This latter development ha.
grown more pronounced in recent weeks
1t is explained partly by seasonal dull.
ness, but chiefly by the money stringency
and the general wave Of economy which
has swept over the country. Dealers ir
some sections are finding it less easy tt
finance consignments of cars received
from manufacturers, while prosperity.
customers in the majority of cases ar.
unable to obtain credit to buy cars or
time, unless for strictly essential pur
poses. The large automobile companie:
are cooperating with bank authorities il
resisting further infationary tendencies
Curtailment of auto production is beinf
reflected in the parts and accessories in
dustries with slower collections, cancel
lations of orders and extension Of
schedules of deliveries over greater
length of time" AS for the tire indus
try, it is reported that in Akron plan,
shifts have been materially reduced, anc
some large plants are running on re-
duced schedules of five days a week
Most tire markets have caught up will