New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-28
Fresh Break i'm
Market Sets New
Low Price Level
Industrial Shares in Average
Touch | lowest Point of
Year; Rally in After
noon When Shorts Cover

Liquidation of speculative holdings
induced by the sudden and unexpected
break in prices late Monday reached
large proportions at the exchange yes
! tcrday. or the first half of the stock
market session prices receded in pro-
nounccd fashion before series Of
| selling waves and declines of L to S
points were registered in the r%rc-
sentative industrial shares. With Me
selling movement gaining momentum
activity increased heavily. But in the
afternoon, after temporary. lull,
stocks displayed rallyng tendencies
and moderate recovery occurred. This
gave the list a better appearance at
the close, although the market was still
well under the final prices of the pre-
ceding day.
The average price of thirty industrial
stocks used in making up The Trib-
une's daily average touched new low
for the year at $3.50. The previous
low was S793, made on the break last
May. In the interim the average has
risen above 95. At the low level of
yesterday the industrial average was
approximately "a points under the
high. reached last year.
Professional traders who were the
aggressive leaders in the selling move
ment on Monday kept up their raidng
tactics for the first half of the scss ion.
1t is probable that the list would have
rallied earlier had it not been for the
persistence with which the bears kept
hammering away at prices. Efforts OF
the professionals were largely cen
tered upon Steel common, which had
proved vulnerable to the selling the
previous day When Steel continued
to give ground again yesterday it
rot
where in the industrial list Steel
dropped to S712, setting new low for
the year. 1t rallied later, however,
closing practically unchanged at S91s.
The forenoon selling uncovered
weakness in the same speculative IA
vorites that had declined so swiftly on
Monday. These included Baldwin Lo-
connective, Mexican Petroleum, Vanadi-
um, Crucible Steel and Republic Steel
A special drive against General Motors
stocks supplied an interesting feature.
One house was credited with having
sold $4,000 shares of the 1000 900 shares
of the stock traded in at the exchange
1t broke to new low of 20%, closing
r. points off.
Railway shares reflected the general
unsettlement. Offerings of rails were
accompanied by rumors, obviously with
out foundation, that the decision of the
I interstate commission IN lne mdlleT VI
an increase in freight rates would be
announced before the end of the week
and would be extremely unfavorable to
the carriers. In the bond market many
of the old line railway bonds slumped
severely, dropping in some cases a
/ point or more between transactions.
/ The rally in the general list in the
/ afternoon started before the call money
rate had been reduced from 9 to 8 per
/ cent. Stocks had been sold.t a stand
still and apparently the largely ex-
/ tended short interest saw that the time
/ had arrived to take profits The buy
ing that came into the market in the
late afternoon was almost entirely for
the account of traders who had sold
stocks on Monday and early yesterday
in anticipation of the decline. Such
/ recovery was to be expected in view
OF the extent of the break.
Little happened in the news which
had much bearing upon stocks. An
nouncement of the shipment of $780,
600 gold from Cherbourg, France, was
matter of interest since it suggested
the beginning of a larger movement Of
the metal in this direction. A financial
representative of the French Treasury
is now on his way to this country to
make arrangements for taking care of
the French portion of the Anglo French
loan maturity next October. The for
eign exchanges displayed better tone
yesterday