New-York tribune., 1920-11-16
More Resistance
Shown by Stocks
AS Money Eases
Renewal Rates Drop to
Z Per Cent for First
Time in Weeks: New
Lows Are Again Reached

In the stock market yesterday two
phases stood out above the rest. First,
the supply of call money on which
speculation feeds was more ample, and
renewal rates for the first time in three
weeks dropped below 8 per cent-to
Si2 per cent and later to per cent,
Second, although selling was again IN
sistent and new low points were
touched again by stocks, the resistance
power at the new levels seemed TO be
less weak than on any day last week.
What happened on the Stock Ex-
change offered little encouragement to
those who have been anticipating ro-
bust rally Of so-called technical ma
ture. The average price of thirty lead
ing industrial stocks slumped to the
lowest figure Of the year to 76.3O, COM
pared with IS 33 on Saturday. Yet the
trend Of the whole market is somewhat
misrepresented by the average, because
Of the exceptional weakness Of the cop
per and rubber stocks, which are in
cluded in the calculations. The aver
age of twenty railroad stocks climbed
from 6745 to 6S.05.
The easing of money rates late in the
afternoon caused rally and losses
sustained in the middle of the session
we're in some instances effaced, as the
closing prices were close TO the highest
quoted during the day. Despite the
heavy selling still in evidence and the
failure Of previous pred ctions regard
.ng the touching Of bottom to corre-
spond with events, some brokers were
prices of the year have been estab-
ished, and several commission houses
placed themselves on record to this ef-
feet
In the case of the rubber stocks, the
passing of the dividend on Goodyear
common Saturday was the immediate
cause Of the insistent liquidation, which
affected the securities of other com
panies in the industry. The announce
ment that the Anaconda Copper Com
pany would effect a forty per cent re-
duction Of its zinc output, as we'll as its
copper, as was previously made known,
and the remark of leading copper
man that the industry could not thrive
while copper was sold at | ) cents a
pound explained the momentary aver
sion to securities of such companies.
In the commodity exchanges, irrcgu-
larity prevailed. Wheat prices leaped
higher, and, after declining, corn quo
tations followed the leadership Of the
former. Until the last half hour of
trading cotton prices moved upward,
'bt HSHNs StliiNS tbNfilu INC tlOSC, OlI
the rumor that reached the ring that
banks in the Southwest were calling
cotton loans, effected slight net re
cessions for the day
The easing in call money rates was ex
pected, and was partly due to the matur
ity here of blocks of commercial bills,
which tended to Offset some OF the out
flow Of funds to the interior. The COM
| bined Reserve Bank statement revealed
some reduction of credit, compared with
the recordbreaking figures Of the previ-
GUS week Locally, the Treasury by with
drawing $9,200.000 more from the New
York banks has practically eliminated
its balances here, but they will be re-
plenished forthwith by sub bscri ptions to
the new 100000 900 issued of 524 per
cent certificates. Of which, it is ex-
pected at least $6O,00o.00O will be
placed in the New York district.
The bond list. including Liberty
bonds and Victory notes, was weak yes
terday. In the absence Of buying sup
port prices eased off Dealers who
are reported to be we'll stocked. are not
at the moment actively in the market
as purchasers, and consumer buying Of
investment issues seems to have been
temporarily checked, possibly partly as
result Of the prevalence of pessi-
mism. However, the very factors that
are making for lower stock prices
ought TO improve the worth Of fixed
maturity OblgatiOns