Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-27
BEARS RAID LIST;
SOME RECOVER|ES
Steel Common Features,
Breaking Its Low Point
of 1919.
BY STUART p. WEST.

BY STUART p. WEST.
| WALL STREET, NEW YORK. July
z'-- The market went through
another pretty uncomfortable period
during the first two hours and a hall
of business this morning. Numerous
stocks went through their former
one very notable instance of a stock
breaking it's low point of 1919. AS
usually happens where the whole
street was as bearish as it was at the
outset of trading operations for the
decline were overdone.
The forenoon was a record of one
attack after another which brought
out some liquidation on stop orders,
but which made the market look
weaker than it really was. BY early
afternoon while many individual
stocks showed a substantial loss, The
to make the net decline compare
lively unimportant. There was no
question that what is known as good
buying" had come into the market IN
volume. 1t was the sort of buying
conducted on scale down which
regularly appears at time when on
the surface of things everything is
extremely blue and nobody seems to
want any stocks.
Call Loan Renewal Up.
The raising of the call loan renewal
to Q per cent was the chief argument
used by spectators for the decline.
1t did not matter to them that call
money was just as high and higher
a month ago, when the whole specu-
lative community was optimistic and
talking higher prices. Pessimism was
the fashion and the professionals
seized upon and overemphasizeu
everything that was unfavorable. The
Improvement which set in soon after
midday quite likely would have come
a bout anyway. because speculation Tor
the decline bad been carried too far.
But it was helped by the unexpected
announcement that $4,000 gold was
on it's way from Europe and was COM
ing this time not from England, but
from France.
One Encouraging Sign.
1t took a pretty hardy optimist to
extract any comfort from this morn
ings stock market situation. but there
was the unanimity of bearishness in
professional and brokerage circles.
Only a month ago. with credit condi-
tons no different from what they are
now. with the call loan renewal like
wise at 9 per cent, with the reaction
pronounced, nearly every commission
house letter which went out from
Wall street was advising the purchase
of stocks for a summer rise"
1t is bad enough to have followed
this advice. but it is very much worse
to be told by some of these same let
ter writer's now that prices are down
to Is points, that the market is a
sale and that even the much touted
railway shares are likely to go lower.
Where everybody is on one side the
experience of the past has been that
the market has moved in the contrary
direction. This has certainly been
true of the price movement during
the last three weeks and it is not at
all bad thing that the great majority
who were so bullish at the start of
the month have become SO bearish
now.
Market Opinions.
Few OF the market letter writers
could work up any enthusiasm today
conditions in the immediate future.
The restraining influences Of the credit
situation, together with the fact that
the public is out Of the market, were
factors in the opinion of a. number of
the experts that it would take more
than a favorable rate decision and a
very favorable United States Steel re-
port to discount. One Broadway house
was very bearish at the opening OF
the market yesterday. and sent this out
for it's clients: THE demand on the
money market for crop moving and
other purposes will be heavy from now
on and we must expect further read
justment of stocks downward. with
considerably more liquidation. The
rallies will be trif1ing. We continue
to advise sales. A bank deficit is
not corrected in a day. The banks
" Themselves greatly
the demand about to be made upon
them
Thinks Rally Is In Order.
Opposed to this was the following
from a Broad street house: THE mar
ket has been steadily declining for
two weeks, is well liquidated, and a
rally, in our opinion. is in order. AL
though stocks may go somewhat low
err, we feel that. purchased at this
level for long pull, they will show
handsome profits"
Another letter said: THE restrain
ing influence of the credit situation is
plainly evident in the action of the
market. Nobody expects easy money.
but banking plans for the fall demand
are well laid. and all that is needed is
a quiet market. If the professional
element would take a months vaca-
ton we would get through very nice
ly. The street is in no mood to re-
SponQ 10 SoOu news eltner from the
United States Steel Corporation or
the Interstate Commerce Commits
sion"
Bond Prices Shaded.
Bond prices were as a rule inclined
to be shaded in today's market, this
apparently as a reflection on the I'M
settled condition in the stock list.
Liberty fourth Az s sold under IS for
the first time since their recovery
The Belgian 712s got down to 9912, at
which figure they were off a point
and half from their high of a fort
night ago. The Belgian IS were I'M
changed at SO. Some heaviness de-
veloped in the equipment issues, par
which wore off half point at 97A
City of Paris IS were down a frac-
ton at 91A, while Imperial Japanese
As were slightly firmer at SAN.
The st. Louis and San Francisco
6 per cent income continued steady
of the low priced railway stocks. 1t
is understood that practically all the
former French holdings, which were
taken over by a syndicate some time
ago. have been sold.
Lake Shore As of 1881 were dealt
in at II. These are one of the IA
vorite selections of investment ex-
perts, who point out that they are
a second mortgage on the road. ma
ture in eleven years and consequent
~ yield at the present price little
more than Ga per cent held through
to the end
Liquidation Also Hits Curb.
There was some real liquidation in
the curb market today and material
declines were made in many of the
leading speculative favorites, due to
the fact that bids were lacking for a
time, and even insiders apparently
had Withdrawn their supporting or
ders temporarily.
International Petroleum was in sup