Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-14
TRADING QUIET,
BUT PRICES UP
Markets Still Remain Within
the Liquidating and Dis
tributing Area

New York, Aug. 14.-Today's closing
stock market was a typical midsummer
half holiday affair. What little busi
ness was done comprised mainly Of the
familiar week end evening up of COM
mitments by traders. AS the larger
balance was on the short side of the
ledger there was further extensions of
by the customary leaders. A general
! disposition to await the result of the
armistice conference between Russia and
Poland was an additional restraining
influence Foreign remittances showed
only slight variations from yesterdays
close
In the weeks events and develop
ments were to be found ample evidence
proving the markets still to be within
the liouidating and distributing area.
1t cannot be said the violent shake
down of market values came without
warning. as well defined signals and
signs had been conspicuously displayed
of the approaching market squalls. Rea-
sons and influences responsible for the
semicolapse of the speculative struc-
ture would not be difficult to find. The
answered is whether the weaker strata
has been entirely eliminated. Or,
whether temporary props have merely
been set up to permit the carrying out
of the original adjustment plans which
have been in progress since last fall.
The hurried closing out of speculative
pools. although painful as the curative
has been. only naturally hastens the
purging process, and correspondingly
strengthens the underpinnings OF the
market structure. There is, however,
no assurance this part of the house
cleaning program has been completed
Quite number of these speculative
combinations saw fit to ignore restraints
which had been necessarily imposed
upon speculative activities and
bucked the current which eventually
carried them to their downfall.
With the weeks heavy liquidating
wave there accompanied. as usual. con-
siderable selling by the professional
traders. or for the short account. In
consequence, the movement was carried
too far. and as a result, technical
conditions produced the automatic re-
bound. The idea seemed to prevail in
some quarters the co-called big In
terests were quietly accommodating
stocks. II such was the case the buying
was very quiet indeed. On the con-
trary, the hesitating character of the
market on the recoverieS suggested apart
from the inquiries of the over extended
short interest the buying power was still
extremely limited.
International politics cut a very big
figure in the weeks happenings, but 1t
is doubtful if the unsettling develop
ments in the Russo Polish situation
e,,oh ;p,,nrfapt factor many
made it out to be. OF course. it con-
tributed to add to the mental confusion
of the market community and gave the
bear party powerful weapon in
smashing values in their concerted
drives. Likewise, it is quite possible
that should the armistice conference at
Minsk result in terms consistent with
allied principals enunciated in the
Versailles treaty there will be a violent
market bareback. The peculiar tech
nical position of the general list Just
at this juncture leaves the market highly
sensitive and susceptible to sucn
radical turn. Probably it would be more
interesting to know what the market
might do il the Russians should impose
terms inconsistent with the allied prin-
ciples. Over the week end development
can best answer this question.
Until money conditions assume more
tranquil and normal aspects there
would seem to be little use for looking
for any great accomplishments on the
constructive side. The machinery Of
Wall street stalls without money, and
according to the testimony OF leading
banking interests funds for stock
market purposes are still very limited.
On the other side. those who have
securities and need money find that
Wall street is practically the most con-
venient quarter to get 1t. Until these
conditions change recurring waves Of
security Humiliation can be eXpected.