New-York tribune., 1920-08-19
Stocks Continue
Under Pressure
OF Bear Offerings
Brighter Foreign Outlook
Fails to Check Decline;
Call Money Goes to 9 Per
Cent i'm Late Trading

Confirmation Of the mors hopeful
reports relating to the Polish counter
offensive gave the foreign situation a
much brighter aspect yesterday, but
failed as stabilizing influence in the
market for speculative securities. Pro-
fessional bear traders, who seem to
be dominant in the market for the
moment, proceeded with their opera
,tions, less vigorously perhaps than on
Tuesday, but nevertheless with suffi-
cient energy to depress industrial share
values and push certain issues to new
low levels
The market was great disappoint-
ment to the rank and file of traders,
who had hopes that the cheering news
from Europe might be translated into
higher stock prices. AS it was, con-
ditons within the market itself showed
very little change. Traders continued
to talk of a technical rally, arguing
sagging prices many stocks had been
oversold and we're, therefore, in posi-
tion to rebound vigorously to such de-
velopments as might cause the large
short interest to run to cover.
Stocks started out with fair dis
play of firmness, but the market had
not been long open before the pro-
fessional short sellers resumed their
depressing tactics, singing out first
one group Of stocks and then another.
Special issues came under special pres
sure as the session advanced, and it
did not take large offerings to produce
rather sharp declines in a number Of
these shares. The continued fall in the
price of raw and refined sugar had
reflex in the market for the sugar
shares, and American Beet Sugar was
especially weak. National Lead was
conspiciously weak speciality. Of the
better known issues Baldwin Locomo-
tive came under the greatest pressure,
Lyielding more than points from it's
early high. The Street heard rumors
of pool unloading, but the more obvi-
GUS explanation of the setback in Bald
win had to DO with concerted bear
effort. Other equipment issues were
also depressed, and the lack of resist
ance by the group gave rise to reports
that orders for new equipment were
not coming through as rapidly as had
been expected a few weeks ago. Equip
ment shares, however, are suffering
from the same lack of support which
is making the whole industrial list so
Vulnerable to bear pressure, and the
short interest in stocks like Baldwin
must be of fairly large proportions by
this time.
Steel shares as rule gave g better
account Of themselves, although the
weekly reviews Of the steel industry
could hardly be described as optimis-
tic. One of the leading authorities on
the trade called attention to the fact
that because of the recession in the
automobile and other industries the
steel market is much less active and
cancellations of existing contracts for
steel are on the increase. Automo obile
manufacturers are said to have made
fairly heavy cancellations, rejecting
the less satisfactory state of affairs in
that particular line of industry. Ac-
cording to The Iron Age automobile
manufacture curtailment thus far has
been estimated at 25 to 80 per cent.
Operating conditions at most of the
steel mills appear to have undergone
further moderate improvement as a
result of the better car supply, which
has made possible larger shipments
and insures a steadier flow of raw ma
terials.
Further calling Of loans by the banks
forced the rate on call loans up to 9
per cent late in the afternoon, which
was the highest rate so far this month.
Renewals had been made at per cent.
In the commodity markets there oc-
CURED another downward revision in
prices, with cotton slumping violently.
while wheat and corn yielded substan-
TALLY. The foreign exchanges we're
easier, with sterling losing more than
cent in the pound.