The Washington herald., 1920-11-07
HEAVY TONE TO
STOCK MARKET
Subst.siaI Net Lssss Rsesrasa !.
Railroad as1 Industrial Shares
Duriag Shsrt Sessiss-
NEW Low RECORDS ARE MADE
Shsrt SeIIiAs ssd Cssuise Liqsids-
tsa Cs.se Isdastrisl Declise-
Prs6f Taking Hs.nsrs Rsils.
NEW Low RECORDS ARE MADE

NEW YORK. Nov. s,-The actual
bank statement today showed surar
plus decreased s16.se1.sso. loans desl
erased sbx.a65.00e. and net demand
deposits decreased f7S.3z3.o0o. The
average statement showed surplus
ss.77a.s2o. loans decreased
SIS, s,15s,0o0. and net demand deposits
decreased s35.s1s.0oo.
The Federal reserve bank state
ment showed ass per cent. against
3s.l per cent a week ago Of re-
serves. combined deposits and Fed
eral reserve bank notes outstand-
ing. II showed 3s.s per cent COM
pared with sT.s per cent Of reserves
to net deposits after deducting 30
per cent against Federal reserve
bank notes outstanding
The hesviness which developed In
the stock market late Friday was
'extended TO today's short session
and resulted in substantial net
losses for railroad and industrial
shares. In some Instances new low
records were witnessed in the in
dustrial group. The decline In rails
represented for the most part the
conversion Of paper profts into
cash by people who were unwilling
to hold commitments over sunday.
Short selling and genuine liouids-
tion by disgusted persons consti.
tuted the reasons for offerings OF
Industrial issues.
Initial prices showed declines 4
ranging from a fraction to a full
point Brokers reported a substan-
tial volume of selling for the ac-
count of commission houses. This
added to the offerings by profess
sional traders carried the list down
from one to three points with spe-
cialties showing olsses from four to
six points. Toward the end OF the
FIRST hour short covering caused a
feeble rally but liquidation was soon
renewed with the result that the
selling continued up to the close Of
the session when quotations were
near the lowest.
Foreign Exchange Weak.
One disturbing factor OF import
ance was the continued weakness in
foreign exchange. Sterling dropped
three cents. French francs were
lower and italian exchange touched
new low. Foreign exchange ex-
perts attribute the depreciation in
foreign credit as expressed by eN-
change to the inability Of England
and France to agree with regard 20
the terms OF German indemnity. In
ternational bankers are quite con-
cerned over this situation. France
needs money badly and the delay In
agreeing on the terms Of the Ger
man indemnity Is aggravating her
financial position and causing weak
ness in her exchange. This in turn
is disturbing the balance OF the
foreign exchange market.
A slight tightening OF the money
market and the calling Of loans by
banks is due 20 preparations beingu
made by the banks for a call Of con-
dition from the Comptroller Of the
Currency.
Notwithstanding the heaviness OF
in general. Mexican gov
ernment bonds were in good demand
at higher prices. London was
anxious to purchase Mexican Irrigs-
ton AIS and bid the price up
points without receiving any offers.
Expectation of the restoration OF
relations between Euro
pcan countries and Mexico and rec
ognition OF Mexico by the United
States furnished the incentive for
the buying.
Underneath the general selling
there was good buying Of
Southern Pacific reported. At it-
low price on the reaction yesterday
of lllH IL was slightly more than
6 points under the high for the
week. The financial district. how
ever. is confident that the distribu-
ito nof the company's oil lands and
stock holdings in the Associated on
has not been fully dis
in the quoted market price
for the issue.