New-York tribune., 1920-11-07
Heavy Selling
Causes General
Decline i'm Stocks
commodities and Foreign
r Exchanges Also Drop
Lower i'll Response to
Adverse Trade Factors

Severe declines in spcculativs@ Sc
curity and commodity prices and a
further striking fall in foreign ex
change rates supplied the outstanding
ccveiopmonts Yesterday in the financial
markets. Depreciation in all of these
marts was plainly the result of the
sentimental effect of the converpencc
OF unfavorable trade and industrial
factors which have been emphasized
by events of the past fortnight.
In the stock market the movement
toward lower levels followed a contin-
uatlon Of the selling which unsettled
prces in the late trading on Friday.
Stocks opened with an irregular price
range and then confronted heavy offer
lNgs. This was particularly true of
the industrals, and as the group gave
way without offering much resistance
to the selling the rails came under the
same influence and substantial de-
cnnes recorded in that department of
the market.
Although special issues were par
'icuiarly depressed in the declining
movement the selling was by no means
confined to any single groups. In fact
the failure Of standard shares, such as
steel common, to stand up in the face
o tine offerings was largely responsible
ior the general unsettlement. Steel
common lost az points at SOL. and
closed at the bottom. No other steels
we're affected in sympathy, Nanadum
N'eel losing points net. Motor
shares were similarly depressed, with
flcrce Arrow and Willy Overland the
WV,eaNeHst features. Among the oils the
-NeNlcan issues reached sharply, Mexi-
can fetroIeum losing 6 points. Among
me ralls Southern Pacific, which has
Vt(n strong for ~
setback. Most Of the seasoned in
Veslment issues closed with net losses.
III some cases exceeding point
Much OF the selling evidently reD-
T'sehtatve speculative offerings for the
account OF the professional bears. but
'Nere WAS also liquidation in evidence
efPecia!ly IN the case Of the indus
,f'@lS. Undoubtedly disappointment on
nc part OF many holders of stocks over
.,'N |iilre OF the market to respond to
~Nc eIecti0n news has caused unloading
Inc unsettlement Of the foreion 90.
ch@Nges again yesterday was also an
important influence in the stock
",ArNet, for ii pointed once more to the
chao'ic international credit situation.
STERLING exchange dropped below S3.37.
se1tng new low for the current
movement. Francs touched 5.94 cents
Whlic Italian lire at SAT cents were tho
lowest IL the history of the exchange
market The break in the exchanges
yesterday followed several days OF
.atiing quotations without any notable
raj Declines in cotton and grain
prices yesterday were attributed in
part to the drop in the exchanges
wnich, 1t is held. may check exports
ot thesc commodities.
The weekly statement Of the Federal
Reserve Bank of New York disclosed
decline Of z Of per cent in the
ratio o total reserve to deposit and
Federal Reserve note liabilities which
bank lost gold through the settlement
fund on operations with other reserve
institutions. Rediscounts against com
nmerci,al paper showed slight increase.
me bank reduced its borrowings from
ole olner reserve Institutions from S4S,-
000,00o to Sl4700000. New Yory Clear
ing house banks reported small
deficit in reserves.