The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-10
FINANCIAL NEWS
AND COMMENT
Stocks Lose More Ground. With
Renewed Weakness in Rails
and Industrials.

The stock market continued 70 lose
ground yesterday. weakness OF some
railroad issues being Only less marked
than that os particular groups OF indus
trial shares Evidences OF bear drives
were not 50 plain as in earlier days OF
the week, but selling pressure was suf-
ilciently persistent and broadly applied
to show that spectators working for the
decline were active. Several nanufac-
turing company stocks reached new low
levels for the year; the reaction Of a
number oe railroad issues was large
enough. taken together with their grad
ual sagsing processes OF the last month,
to eliminate nearly all the improvement
made after freight and passenger rates
were increased last August. 1t is pos
sible that sales OF rail shares have been
promoted latterly by the uncertain
showing OF the carriers in September
and October under the new tariffs. Blu,
II is too early yet to determine the full
relation between the new rates and the
actual profits which the roads will be
able to show as time passes. A great
deal OF delayed ma intenance was prob
ably charged against the earnings of
the first two months of expanded rates.
and the assumption may be made that the
companies will strive as long as weather
conditions permit. TO improve roadbed
and equipment. AS the winter period
advances outlay for uplleep will recede,
and then 1t will be more possible than
at present to determine the effect Of IN
dustrial conditions upon railroad traffic.
Stocks started off uncertainty gradu-
ally moving lower and leaving Off with
, fair rally, mainly on short covering.
Call money was unchanged at per cent.
and moderate Improvement Of Gov
eminent war bonds, together With
steady tone OF corporate funded secur-
tiles. indicated that the general money
situation was not working to depress
fixed investments in advance Of the De-
cember Is settlement. AS railroad
stocks have shaded downward since No
vernber Is rail bonds, especially OF COM
panies less we'll intrenched than the
great systems, have reacted from the
best levels OF October. But In these
, movements there has been much profit
taking. The security market is devot-
ing attention to the annual considera-
ton Of selling for record IN income tax
statements for the year. In regard 10
this subject, it Is noted that the heavy
outpouring OF Liberty bonds, which made
unusually large bond markets q year
ago, has not yet found counterpart
this autumn, and IL this fact may be
thought to reflect efforts to record losses,
there is evidently not so much pressure
as last December from this source IN
the security markets generally.
Grain futures again moved downward
and cotton receded after an early upturn
losing most OF the mornings improve
ment The swings Of prices In these mar
kets have become so erratic that they
defy explanation. Again the silver quo
tation in London recorded n heavy de-
cline, no less than 3N pence an ounce,
and the open market price at New York
dropped 5A cents to 60 = cents. This
quotation was the lowest reached since
late in July. 1917. and the days fail
demonstrated anew that the pressure Of
offerings from far eastern quarters Is
much In excess OF the amount which the
consuming markets can absorb without
difficulty. The foreign exchanges dis
closed no movements OF Importance, the
volume of business being on n rather
small scale.