The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-08
FINANCIAL NEWS
. AID COMMENT
Traders Search Ont Vulner-
able Spots in Industrial
Shares for Selling.
GENERAL ELECTRIC WEAK
Move in Reading Is Halted by
Slump in Stock in Last
Hour of Session.

Encouraged by the hreak In Texas q
Pacific. traders continued yesterday to
search out weak spots In the industriais
TO exploit on the selling side. The oil
stocks were singled out again for SELL
ting. and so were the steels and equip
ment shares. Sears-R oebuck and Gem
eral Electric were also subjected TO an
other severe attack by the bear party,
the former on a report that the dividend
would be limited to 8 per cent. under
the new financing scheme and the latter
on runrors that the company was In
need of new capital; but with these ex-
ceptions the market failed to do any
thing spectacular In either direction.
The rails were sold again on the theory
that the reaction had not gone fsr
enough, and another attempt was made
to rally Industrial shares In the final
hour after they had recovered from the
shock of the break In General Electric
and SearsRoebuck but this attempt
was not successful. and to the AVERAGE
observer the market appeared TO nave
degeneratcd Into purely trading AT
fair, with fluctuations meaningless Tor
the time being.
The fact that the Industrial shares
seemed to hold better than on previous
days appeared to Indicate that the bear
party was bring ing out less stock on the
drives, but II the bears failed to bring
out fresh LIQUIDATION II was equally
clear that those who look for higher
prices are having equally as difficult
time to keen stocks up whenever they
show any disposition to rally. There
was no news yesterday to help the
market. which Is probably the main
reason why rallies failed to hold IN IN.
! dustriai shares. The Street, for that
matter. was msxe discouraged than ever
at the action or the STOCK market. ou.
This circumstance In itself suggested
that people have overcome the down.
ward movement That the real test OF
whether the selling Is being overdone or
whether real liquidation Is actually tax
| ,np place will come tomorrow, when
| the Steel CORPORATION Issues It's rnontn'y
! tonnage statement, Is the opinion OF
! good many observers whose opinions
| are usually sought for on stock maIhet
matters.
The Street was still al mucn coz.
fused ms ever over the break IN Texas
a Pacific. but the fact that the raity
sid not 20 my further yesterday fenced
IN conf,rYn the opinion that the decline
had been the result Of real liQuidauon
ana not the result OF well p'anheo
boar nttpck, es some people seemed 10
he,ieve the night before. II II had been
due TO short selling there certainty
would have been real rally IN the
shares Yesterday. but 81 II tvrneu OUT
no demand OF importn nee appeared TOY
the stock er day. The move In heao'"r'
r-h,c,, p.ortcd the day before, made
further heaswcy. but the stock s'unped
hack quickly again in the last hour.
when II was learned that the company
| would merely make known on MondsN
n. intention of filing the seggregatio1
plan sorna time within sixty days. m
s.eed OF making known the scheme as
he'd haen rur,,o-ed previously The Slump
IN this stock naturally hit other rails
| but the only Important loss recorded W
this dera rfment, however. was In Read
I tno itself. While the rails were de.
| cl,ning In the last hour. the Industrial
stocks were inclined to rally, but the
recovery did not so far except In the
case of Baldwin. The steels continued
heavy In anticipation Of poor ton
maze statement on Saturday from the
Steel Corporation.
There was no change whatever IN
money conditions from Wednesday. The
renewal rate was per cent. and loans
were made In the last hour as high a.
8 per cent. but after the demand had
been supplied the rate slumped oack 70
per cent again. The demand Tor funds
however. was much heavier than on the
preceding day. and floor brokers re.
ported that the rate probably would
! have gone as high as 10 per cent. X u
| Rad not been for the fact that one local
! Institution loaned q great deal OF money
during the day. II In understood that
one OF the reasons for the present furry
Is the parations which are being
French loan on October 1b.