Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-28
IRREGULAR|Ty IN
CLOSING MARKET
Recovery From Recent Depres.
sion Made at Expense of
\ the Shorts

New York, Aug. 2S.-The week
closed with listless and meaningless
stock market today. The trading was
strictly professional and made up almost
entirely Of the familiar week end
evening up Of the room trading con
tingent. Uncertainties concerning to-
days bank statement and the possihili
~ Of further money flurrics next week
as result Of the preparations by the
banks for the heavy September l dis.
bursements, tended to create a cautious
policy. which in turn resulted in a
marked curtailment in the volume Of
transactions. Prices were irregular and
mainly lower. with some selling pres
sure in scattering parts Of the indus
trial division. Replogle lost } points
and Vanadlum Steel and Studebaker |
point each. American Car and Foundry
fell Ia. The recessions elsewhere were
mostly fractional and part of these were
regained, making the net changes of the
representative shares unimportant.
Superficially the weeks performance
would seemingly indicate a definite turn
for the better in the market situation.
Upon closer analysis. however, there
apparently has been little, if any es-
sential change in the speculative out
look. Two of the more prominent out
standing features of the week were to
be found. first, in the undeniable ultra
professionalism of the dealings. and
secondly, the credit situation or money
market continues the dominating fac
tor of the current market situation.
Contrasted. however, with some of
the recent weeks the results of the
trading were not without encouragement.
There was a material recovery in prices
from the depression sustained earlier in
the month, but upon closer examination
this was found to have been made
largely at the expense of large and
unwieldy short interest. Several in
fuences contributed to force a retreat
Of the bear party after their prolonged
successful campaign, notably the much
improved Polish situation. but the more
potent factor in the reversal of the
price trend was supplied by elements
within the market itself. commonly res
ignated as technical conditions.
The railroad stocks were more con-
sistent performers on the rising side of
quotations than the industrial. which
was to be expected in view of the eN-
tensive propaganda that has been made
by Wall street to rejuvenate interest in
the carriers. This does not mean to
imply the rails were not entitled to sub
stantial advance, as they are unQucs
tionably far out of alignment in the
matter of intrinsic value, but Condi-
tions and circumstances are not yet
propitious for wide market movement
In any particular class of securities.
Prominent banking interests assert
the credit inflatio nhas been checked,
but judging from the character of the
recent bank statements and the limited
supply of loanable funds. little prog
ress, on the other hand. has been aC
complished apparently toward detation.
Commercial liquidation is evidently pro-
ceeding slowly. and in making meas
urements of future market possibilities.
the thing to be determined is how much
of this has been discounted by the mar
ket. 1t is quite evident that corpora
tions with large inventories of goods
at high prices. unless they have COM
|. Portable financial arrangements have Il
hard and rugged road to travel. Some
seem to believe that with the com
pletion of the crop moving financing
money is likely to become easier. In
this connection. one fact must not be
overlooked, that is the hungry demand
for funds from all classes of corpora
tions, which is quite likely to become
more pronounced when money Condi-
tions show the first signs of easement
There seems to be a little rift in the
clouded financial horizon. but it is yet
entirely too small TO make reliable
perspective upon the immediate future
market conditions.