New-York tribune., 1920-05-13
Prices ON Market
Again ON Decline
In Dull Trading
Conditions Favorable to
: Bear Side; Motors Put
Under Pressure; Bank
ers' Meeting Starts Sales

Wall Streets primary market in
speculative securities continued to fol-
low the line of least resistance yester-
day, which was again in the direction
of lower prices. Conditions directly
affecting stocks were little changed
and on the whole favored, as on the
preceding day, transactions for the
short account. High rates for call
money served to strengthen the posi-
ton of the bears. The renewal rate
was per cent and the high for the
day was 10, shading in the afternoon
to per cent. In its main aspects the
market was a repetition of the session
of the day before. Professionals were
responsible for the bulk of business,
outside interest remaining at low ebb.
Transactions fell considerably short of
the million share mark.
The speculative element made much
Of the scheduled meeting of bankers
in Washington next week, at which
the current credit situation will be dis
cussed Intimations that Reserve Board
authorities are considering plans for
rationing credit with view to taking
care of the needs of the essential in
dustres aroused interest in financial
d
selling of many industrial issues,
notably the motors, which were special
points Of weakness.
The financial community continued to
talk of an impending let-down in bust
ness activity as a result of an over
strained credit situation. Inability of
the railroads to move freight because
of labor troubles and other factors is
severely hampering industry on all
Th1
terday, for example, that at least
100000 tons of finished steel products
are tied up in freight yards awaiting
shipment to consuming interests. Such
condition cannot help in the long
run but tend to result in retrench-
mAnt and curtailment
Again the stock market was an ex-
tremely thin affair." With the rank
and file bearishly inclined, the demand
for stocks was naturally light, so that
the operations of professionals on the
short side made more of an impress
sion than they would have otherwise.
AS a result of the selling of stocks
this week and last the short interest
must have undergone considerable ex-
pansion, so that the position of the mar
ket must have been strengthened con-
sderably. One of the few favorable
aspects Of the market is the absence
of liquidation. For more than a week
the offerings have represented little
more than bear selling. Moreover, the
further prices have yielded the less
active have been the bears, indicat-
ing that they as we'll as the bulls are
not sure of their ground.
In the days movements in individual
stocks the strength of the Pan Ameri-
can Petroleum and Mexican Petroleum
issues stood out prominently in con-
trast with the declining tendencies
elsewhere. These stocks all offered
resistance to selling pressure on re-
ports of impending Developments of a
favorable nature. Motor and motor
accessory stocks were weak most Of
the session. Failure of Steel common
to hold w served to encourage the
bears in their activities. Rails eased
off in sympathy with the rest of the
| market, although offerings were not
heavy.
The market for new investment is
sues seems to have been established
definitely Upon per cent basis. Se7-
eral new railroad issues have been
sold bearing this rate of interest, and
further financing on about the same
basis is looked for. Two or three
railroads are in the market at the
Nmoment seeking to borrow. The fact
that the United States Treasury has
advanced the rate on its latest offer
ing of certificates of Indebtedness
from 5A to SIX per cent for a six
months issue shows the way the wind
is blowing.