Evening star., 1920-05-18
SEVERE DECLINES
4 IN GOVERNMENTS
Stock Market Slow and Mar
r0W-Some Declines on
Credit Situation.
BY STUART p. WEST.

- WALL STREET, New York, May 1S
"A renewal of very severe pressure
against the United States government
bond market, an extremely inactive
stock market and an easier market
for call money were today's main fea-
lures in the financial situation.
Following yesterdays decline, which
carried the various liberty issues
down SO cents to 81 in every $l00
bond, today's break was even more
extraordinary. 1t amounted to more
1T means that taking the two days to-
Igether, and especially considering
that prices were declining from what
were already the lowest yet reached.
the market for libertyS was in the
worst shape it has yet been in.
1t was really quite remarkable that
this extreme weakness in the liberty S
had no more effect than it did upon
the rest of the list. OF course it is
quite understood that the decline in
governments is not the slightest re-
Election upon their intrinsic value or
upon the certainty of their ultimate
full recovery.
1t is due on the one hand to the abb
surd and entirely artificial yaSis upon
which they were brought out in the
first place and which has finally neces-
STATED their selling prices seeking a
level as all other securities have had
to do in conformity with the higher
cost of capital.
1t is due on the other hand to the
sacrifice selling by individuals and
corporations who need the funds for
their business and are in many in
stances being cut down in their ac-
commodations at the banks. Still
even while these reasons are made
clear, a fell of 81 in the 800 in forty
eight hours in the selling prices of
our national debt is a startling
enough incident to have tried the
mettle of any Wall street situation.
and the fact that the speculative por-
tion of the stock market was scarce
ly affected at all today bore witness
10 the soundness and strength of it's
present position
NOn-Essentials Suffer.
Several of the investment railway
shares in the bond market were Of
fered down rather sharply. But this
was the only reflection in the stock
list of the investment unSettlement.
Some Of the oil shares were carried
down by profit taking and at times
were rather definitely weak. A drive
was made against the motors on the
strength of Gov. Harding's statement
that there must be sharp distinc-
tion between essential and less essen
tial industries in the distribution of
bank credit
But with these exceptions, the mar
ket simply settled down into stagna-
tion at the prevailing level of prices.
Sugars Stronger.
The sugar stocks were notably
strong under the lead of the new
Cuban American Sugar. That there
will be q request growing out of the
profiteering inquiry to place an en-
barge on exports Of sugar from this
country Is indicated. and this fresh
piece Of testimony to the sugar short
age quite likely had something to do
with the buying of these shares.
1t looked. however. as il Cuban
American Sugar was going up for
special reasons, and that the other
members of the sugar group were
merely following.
Retail Stores, which had been the
leader yesterday, was very well sus-
tanned again today. 1t went up even
at times when other things were in
clined to hesitate
The renewal rate on call loans was
reduced to Z per cent and new money
was placed at 8. But this was not
80 much an indication of increased
supply as of slackness in the demand.