The Washington herald., 1920-09-28
GENERALLISY
DRIVEHDOWN
Price Cutting Proves Dis
turbing Factor IN Down
ward Trend.
FAILURES = INCREASE
Weakness Most Acute in In
dustrials-Losses One
To Seven(bints,
FAILURES = INCREASE

ting and the Unounce&ent that q
least Lhree Boston banking instiA
tionI Ihad invoked the ninety ~
clause relative to savings deposits
unsettled the stock market today
and resulted in a renewal of the
downward movement in the general
list. Weakness was most acute in
the industrial department, where
the losses ranged from one to seven
points. The downward movement
was accelerated by reports of GER
tain Industrial companies being in
trouble and in need of funds, but
these rumOrs originated for the
most part in bearish circles where
the wish was father to the thought
At the opening the general mar
ket showed strength, being a con-
unuation OF the rally that occurred
last Saturday, but turned weak fol-
lowing the first announcement that
Boston trust had posted a notice
requiring depositOrs to give ninety
days notice of Withdrawals. AS the
session progressed offerings in
creased. The selling continued up
to the close, when prices were
around the lowest OF the day.
Bankers pointed out that the
downward movement was not the
result of the development of new
fundamental weakness but the con-
tinued result OF previously existing
factors which are unfavOrable. They
added that not only is the usual
fall trade boom but that business
soIyency continues to decline, as
evidenced by increasing failures.
These failures, however. are largely
the result of inventory losses rather
than a strain aCcruing from inabil-
ity to finance a large volume of
trade
Railroad shares were relatively
strong and here and there bright
spots appeared.
L. s. Rubber stock showed pro-
nUuncCd weakness in the late trad
ing. 1t was offered in heavy vol
umC, owing to reports that the COM
pany COntempIates doing some new
financing. Shortly before the close
Of the session the stock showed
a net loss of about seven points
fCr the day.
Motors.
Motor shares suffered owing to
general expectation that these com
panics will in the not distant fu-
tUre cut prices. A conference OF
leading manufacturers of motor
cars was held in Detroit today. Up
to the time the market closed, no
announcement OF the decision as
20 policy was received in Wall
Street. The consensus of opinion
IN the financial district is that the
automobile companies will reduce
their prices.
Brokers with Boston affiliations
stated that the declaration OF mo-
ratorium on bank deposits by three
trust companies did not reflect any
weakness in the general banking
situation. They said that the trouble
was purely local and was an after
math Of the Ponzi bubble.
SteeIs.
steel shares. under leadership OF
steel common. were heavy: Repub-
lie Iron and Steel was under pres
sure throughout the day and at
Jnr time showed a loss of about
,our points. Brokers state that the
public is beginning to realize that
steel prices must be cut by the
manufacturers.
Mexican Pete.
Mexican Petroleum furnished the
excitement in the oil groups. Early
IN the day urgent buying forced II
up three points to a new top OF
1917. At that level, it ran into stock
that carried it down ten points from
the high figure and closed it within
one-half of the sessions low and
with a net loss of 61a points.
Some of the largent commission
houses report that a substantial
number of their clientele are switch
ing from the industrials TO the rails
There is also a steady buying OF
the shares of the transportation
companies for cash. the certificates
being taken out of the financial
district