New-York tribune., 1920-11-09
64 Stocks Drop
TONew LOwsfOr
Year i'm Break
Most Spectacular Decline
of Autumn Efaces Re-
coveries Made Since the
Mid Summer Slum ID

The impulse to sell securities quick
ened yesterday to such an extent that
siNtyfour stocks listed on the New
York Stock Exchange slumped to the
lowest prices quoted thus far in 1920.
IN the broadest market in weeks, in
which the trend was drastically down
ward, the most spectacular break of
the autumn took place and carried the
average of thirty baromctric industrial
stocks to 8l.27. SO far as the indus
trial securities are concerned the re-
coveries made since the tumultuous de-
cllncs of early August have been eff
faced by the recent downward move
ment
The weakness in the stock market
was accompanied by another spectac-
ular drop in the dollar value of the
European exchanges and by a break in
the wheat market which carried the
price OF that commodity to the lowest
level Of the year. December wheat was
bought at Sl.S2 a bushel and March at
SlSl. In the international money mar
het sterling tumbled to 1888 u, new
low for the present movement, and
French francs and italian lire fell
to the lowest figures yet quoted Francs
were available at 5.75 cents and lire
ct 3.3S cents, compared with 1913 cents.
the normal parity for both. Moreover.
marks were sold as low as 90 cents.
which is near the bottom figure of ear
lier in the year.
The decline in the foreign exchange
IS partly seasonal. rejecting the large
offcring Of bills created by the EXPORT
Of American commodities. The weak
ness originates from the unbalanced
state OF trade, and more especially
from the failure to work out anv com
prehensive program for taking care of
this international trade situation. In
particular cases, as in Italy the So
cial unrest, which has greatly impaired
production, has deprived the European
country of an eXportable surplus. The
efforts of the American Bankers As
soclatlon to sponsor the creation of a
100000, 900 Edge act corporation and
similar movements to create instru-
ments for financing trade to Europe
&c likely to help the matter. the seri-
BUSINESS of which is emphasized by the
Danicky state Of the European curren-
cics
For the lack Of strength in the mar
kots Yesterday no special factors were
responsible. The break in stocks re-
hectcd again chiefly the continued re-
cessloN in industry, the persistence
o5 stringency rates for call money
loans were again made at and 10
NN!oi, anu tiic unsettled Sldlc Ol
he exchanges. The publicity given by
nc Treasury Department to the huge
needs of the government for the next
tirce years also affected adversely the
sentiment Of traders. but these facts
were to a large extent forecast by
Secretary Houston in an address be-
Tore bankers at Washington last month.
The nature of the industrial depression
and of price deilation was made more
vivid over the week end by press sur
vcys, by interviews with trade ana
financial leaders and by the announce
ncnt Of further significant price adjust
lncnts, notably the reductions in the
cotton goods scale of NJ. c. D. Borden
6 Co.
The decline, which in numerous in
stances carried stocks from 9 to
points lower, was facilitated by the
operations of professional traders. who
made heavy short sales At the close
cf last week the bears Of Wall Street
were especially articulate and pre-
clcted the~drop. The atmosphere Of the
Street has been affected by the turn
n the market, and some observers in
commits 'ssion houses have sharply
Changed their opinion. However. the
fundamentals remain unchanged. AL
though the market is likely soon to
get into an ovcrsold condition. sub
sfantial operations for the rise are
lhclN 10 meet with resistance as long
as tho supply Of call money remains
50 limited. Although few rails. no.
l'oly Southern Pacific, moved upward
@%a'nst the current, most railroad
s.ochs reacted