New-York tribune., 1920-12-22
Severe Break
Slashcs Values
In Stock Mart
Liquidation in Large Volume
Makes Day Busiest Since
May; Rcploglc Under
Pressure; Steel Lower


which has long been chronic, yester-
day became acute.
The boast et the New York Stock
/ Exchange is thas IS Is continuous
market where securities can always be
converted into cash. This attribute Of
liquidity was put to the most severe
test of the year yesterday afternoon
wnen enormous blocks Of securities
were ruthlessly tossed into the mar
kotplace for what they would bring,
mated at the expense of values. From
shortly after midday until tho last
half hour OF trading, the process of
offacing the increments in security
prices made in the last three years
went on with startling rapidity.
Observers who watched the stock
from period of unprecedented boom
and price imitation into longs success
sion of days of falling prices are
tempted to call yesterday climax Of
the movement The fact that the vol
Ume of transactions was larger than
cf any session since May gives un-
usual Importance to the days market,
and the fact that the break in prices
was the swiftest of the year gave the
session its dramatic qualities.
The last two comparable days were
those of November 19 and December
l3. but each of these precedents was
exceeded yesterday both in activity
and in the velocity of the decline.
The immediate cause for yesterdays
speculative collapse was sensational
weakness in Replogle Steel stock,
which tumbled 22@s points during the
afternoon closing 10 points lower. Ac-
cordlng to the rationale of Wall street
the puncture represented no sudden
change in the affairs of the manufac-
turing company, but rather the press
ing difficulties d of conspicuous stock
srcculators who no longer could main
tain their position in the market. ne
food of this selling shook the contl-
Gcnce Of the speculative community
and was driven onward by torrents OF
d stressed sales Of other securities.
Fefore the turn upward stopped the de-
noralization. every group OF stocks
went through the wringer which eX-
tracted further losses from securities
which have been squeezed Tor more
than a year. 8,
Around 2:30 p. m, when the excited
liouidation had almost culminated' Pc
sistent buving orders forced their way
into the market and soon began 10
stav the tide. There was dlspos'-
ton in brokerage circles to attrlpu'e
this rally to banking support. Inc re-
hound was rapid, adding to the pyr2-
technical effect, and amounted almost
full point in the average price OF
industrial stocks However, in SPITE
of the partial recovery, industrial
stocks closed at the lowest prices OF
the year, and many stocks were quoted
at tho lowest priccs since 1917. steel
common had not sold as low as 1t
dropped yesterday since 1918. Accord-
ing to The Tribune averages, the aver
age of thirty industrial stocks at the
end Of the session was 67.67, compared q
with 69.57 on Monday; that Of twenty
the necossitous selling on the part OF
those who needed cash forthwith
tumblod from 900 to 59.25,
The Weakness in the stock market
reacted on tho commodity exchanges
and wheat and cotton revealed losses.
but corn prices retained moderate gains
for the day. Liberty bonds rallied
carlier in the day. but the inve stme nj
market was later unsettled by thc
break in the stock market, which, az
usual in such cases, was accompanies
by hNdGct OF fuHols doout tA4e cli dCe-
mcnt OF the fortunes Of large specu-
lators and the depressed position OF
institutions. Behind the slump in the
market. though, is the stern need ol
individuals and firms whose borrowing
power has been exhausted for funds
with which to meet current and forth
coming obligations. Securities arc the
most liquid Of all assets. and large
share Of the hruNt Of the readiustmen
IN industry and finance through whlof
the country is M ssing must be carried
hv tho stock market.
In the foreign exchange market, afto'
strength revealed earlier in the day, th'
European exchanges turned lower il
the afternoon.