Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-02
OPENING BULGE
FAILED TO HOLD
Money Uncertainty Offset Good
Influence of the Favorable
Rate Decision

New York. Aug 2.--There was nm
enthusiastic bulish demonstration on
the stock exchange when Wall street
resumed business this morning az a re-
suit OF the wholesale advances In freight
ana passenger rates allowed BY the In
tcrstate Commerce Commission. IL was
rightfuily regarded as one of the most
important developments in tho history
OF the country's transportation indus.
try. Like all previous outbursts of
speculative enthusiasm, the movement
was of brief duration, simply because
the movement quickly ran up against
the same ligh stone wall built by money
conditions. in consequence of the con-
tinued strained credit situation.
While 1t lasted. the movement was
extremely exciting in that the spectacle
OF rapidly mounting prices IL always
certain to arouse tho market world from
ltS apathy no matter what the causes
may be. The news, coming as it did
after the close of business on Saturday.
brought in n veritablc food Of buying
orders from all sections OF the country.
which was reflected in the pronounced
expansion Of outside dealings. as the
commission houses were heavy purchas-
crs. not only in the railroads but in the
industrial list as well. At the same
the sprcialties with considerable conf
dence: and the market as a whole dur
ing tue first thirty minutes of the trad.
ing showed more breadth and activity
than for some time.
Naturally the railroad shares were
the center Of interest and this group ad-
vnnccd anywhere from l to 3h points.
with Investment buying on quite lib
eral scale in the old line dividend paying
issues. Representative investment
shares such as New York Central. Penn
sylvania Railroad, Northern Pacific.
Reading. Great Northern preferred.
Southern Pacific and Union Pacific
made the most hcadway. but there were
numerous gains approximating 2 points
in the more speculative shares such a.
New Haven. Pittsburgh and Western.
Rock Island. Il. and O.. st. Louis and
Southwestern and Rock Island In the
industrial group the equipments and
Eoinc of the steel shares made the best
response, but for time II was easy
sailing in almost all parts of the list.
The wild buying, however, OF the
opening WAS followed by offerings ot
stocks in large volume. representing
partly renewed liquidation by reason of
the uncertain money situation. W"'
the Clearing House banks showing
deficit Of legal requirements for the sec
ond consecutive week, and with the re-
serve ratio of the Federal Reserve Banks
virtually unaltered. it was promptly
recognized that not only was any sus
tanned upward movement in the market
impossible, but there was. Furthermore.
every probability Of another furry IN
money rates unless the banks were able
to effect prompt rcmcdying Of the i'm
paired reserves.
When the market started to give
ground prices melted az fast If not
faster than they had been forced up
in the initial dealings. Positively weak
spots cropped up in the industrial
division with alarming rapidity, disclos-
ing the lamcntable thinness Of the
market in all quarters. i
The rapid fall in a number of the
industrial specialties produced an un-
favorable effect on speculative sentiment
and before midday there was gen.
eral throwing over of stocks bought
earlier. followed by short selling in
large volume. United States Steel was
typical of the trend elsewhere. for after
advancing to 50 fell to a new low price
for the current movement at S6H. But
the shipping, woolen, motor. oils and
paper shares were also supplied freely
The railroads, while offering more
resistance. also surrendered most all of
the early improvement.