Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-20
PRICE CUTT|NG COMPELs
CONTINUED LIQUIDATION
Banks Closing Down in Accommo.
dations to Profitecring Manu-
facturcrS and Spectators.
DECLINE IN ACTIVE STOCKS
Credit Is Curtailcd and Proflteers
compelled to Sell Their Stocks
Regardless Of Tie-Up in Trans
portation Facilities.
ny nnoADAN NALL.

NEW YORK, May 19.-Actiye
stocks declined from three to eleven
points In Wall Street today and
closed weak at bottom prices. Lib
erty bond issues made new low rec
ords and showed but faint rallying
power. Trading was about three
times tho volume OF yesterday and
there was conspicuous absence OF
raiding by professionals. Some Of
the selling was liquidation for the
account OF investors. who arc becom-
Ing frightened at the constant mark
Ing down of prices under the threats
OF the Federal reservo board. Pro-
Ntedring manufacturers and spccuta-
tors In commodities are being denied
further accommodation Mt the banks.
and arc faced with tho ncceKH!ty OF
ceiling either their investments or
their boards Of goods Because OF
railroad conditions they cannot get
their goods TO market, so they are
selling bondS.
From Washington came optimistic
rcassuranccs that the credit situation
would speedily be riehtcd. That was
equivalent to saying that the bust
ness panic for which the politicians
and the credit trust have worked so
hard the last six months is about to
become fact.
Technically tho stock market IL in
q strong position, for brokers loans
are very small. The short interest
is large and in many cases insiders
have been buying their own stocks
In large volume. The fact that LIB
er,y bonds are selling on an invest
ment basis that brings them into
market competition with the best OF
the private securities makes 1t DIFF
ncult TO check the selling OF other
securities BY the public. The people
believe that the Liberty issues will!
recover nrst. and that II they do not
recover nothing VIII.
The only cheerful piece OF news
was the report that Carranza had
been captured and cxilcd from
Mexico. 1t was also stated that Che
increased tax levied by Carranza On
the oil industry would not be collect
ed. Under normal circumstances this
news would have put Mexican retro
leum up ten or twenty points. but
instead OF rising the stock broke
nfteen points and closed at the low
THIS weakness OF oil sharcs
was disconcertin. Tor conait'9ma
were never 80 iayornb's iGr me m
persuaded many manufacturers 10
turn from coal TO fuel oil:
There was II report that there ~
n general movement among bankers
to compel business men who have
been carrying Liberty bonds on Dor
rowed money to take them up or
ruination OF persons who obeyed the
government Injunction 10 buy all the
bonds they could and then borrow
money TO buy more.
London WAS IN trouble today also.
for stock prices wcre falling there.
Japan was also disturbed Europe
seems 10 be shocked that the scheme
TO unload the war debts OF the allies
on the United States ~ not received
favorahiy here.
ington after the banking conference
promises TO create havoc In all husi.
ness. Credit is to be curtailed at
once -
ProN,eers are to be- compelled 20
sell their boarded goods IL the rail-
roads were In free operations so mat
commodities could be moved from
one market TO another that would be
good policy. But suprosinE 4
rroiiteer Is penitcnt and anxious 10
sell his goods. how can he do II
but the supplies cannot be Put in
result IL that the banker is standing
tile business man w in the corner
and beating him to death. II liz
fine bit OF thcatricals. but II does not
debate There can he no relief until
tile wages OF the railroad men are
advanced and the roads cannot do
thar until rates are raised. The re-
sponsibility rests on the Interstate
Commerce Commission for the rates
because Congress has authorized the
commission 10 fix living rates. Ihc
bankers in selecting this particular
time 10 punish the pronteers are go
ness men for every rrohteer theS