Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-15
GOSSIP OF
THE STREET

ample evidence that stocks had been
accumulated by strong interests and that
the position is now one in which up
Waru movements can easily be made.
according to statements by some of the
leading traders, confidence prevailed In
statements that large interests have
Deen accumulating stocks for long
time and that the floating supply in
many issues has been depleted to an ex-
tent not comprehended by the public
generally, or by many who should be
informed about stock market develop
ments.
=, Much was said about the extent OF
the short account and of the vigorous
efforts that have been made by bear
combinations to depress some of the
nigh priced and sound industrials be-
cause they believe that interests for
merly identified with the market Of these
stocks have turned their attention to
other groups.
liquidation in some of the low priced
specialties, the bulk Of the selling has
been for short account and that the tech
nical position Of the market is stronger
now than 1t has been at any previous
time for months. Those who take this
view speak about the stock market
operations In September, and also those
OF August, as having been time when
the mass Of short stocks were put out
and that those who were then active on
the short side having been recently seek
ing weak spots and unprotected issues
on which they concentrated their, eff
forts in the hope that an unsettling OF
values of those issues would induce
liquidation in the rest of the list
Representatives of leading financial
interests are disposed to talk freely
about the market outlook and in prac-
tically all cases these interests favor
buying stocks. not only at around cur
rent quotations, but at substantially
higher levels. Those who should be in
formed about the position of these in
terests, assert that they have already
accumulated such a large line of stocks
that they can continue buying stocks as
offered and pay much higher prices
without substantially increasing the
average cost of their holdings.
1t Is generally admitted that most
OF yesterdays buying was of profess
like Reading had been bought and bid
up by the trading element. But those
who spoke Of the proportion this ele-
ment contributed to the days business,
said that 1t must be remembered that
these traders have lived long in many
markets and have established rcpu :
tation for reading the market outlook
which makes their transactions each
lay Of the highest Importance, in indi :
'ating the trend of speculation senti
ment.
Reaching Fair Price Basis
Speaking Of the business and finan
cial outlook, William A. Law presi-
dent of the First National Bank Of Phil
adelphia, has the following to say in
the current issue Of the banks publica
ton:
The whole nation is trying to ascer :
tain q fair price basis on which to do
business. The downward movement IL
irresistible. being governed by supply
and demand, and buyers naturally are
filling their requirements on the hand
to mouth basis. The situation In Phi :
adelphia, as at other important com
mercial centers. has been confused by
the pressure of unsold stocks in
+ome industries, by an actual dearth
of stocks in others, and by the
iGuidation at material price con-
cessions Of supplies formerly owned
by the government. In cases where eff
forts have been made to liquidate gov
ernment owned stocks privately through
T"rings to consumers direct, the public
response has not been sufficiently en-
couraging to justify a continuance Of
the movement For that reason the
rest of this merchandise will probably
he offered in bulk at terms which empha
size that the buyer is likely to remain
in control Of the market for some time
to come.
This 'iquidating movement Is reliev-
ing the credit. strain and placing the
country upon the safest price basis seen
for five years. 1t is easing the pressure
upon the banks, Strengthening the
credit position, and, slowly but surely.
eliminating the evils growing out Of the
long period of extravagant living. In
this manner the country Is getting back
to solid rock again and readjusting its
prices to accord with the changed con-
ditions of peace times. The movement
is orderly and must be kept within rea-
sonable limits, for great harm would re-
suit from speeding up liquidation un-
necessarily.
"But the outstanding achievement Is
that the American people are learning
to think once more in terms Of pre- war
expenditure instead of buying Needless
ly. That is one explanation for the
unwie'dy loan account with which the
country has been struggling and the de-
cisive change means that the nation is
at last headed toward sensible living
most favorable economic development
since the war ended and its Importance
cannot be overestimated in considering
the longer future"
Philadelphians Buying Securities