Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-20
WALL STREETS BAD
CASE OF NERVES
In Absence Of Organized Sup
port Bears Forced Heavy
Liquidation

New YORK. NOV. 2U.-lne bNe"-r
Sun, in its weekly financial review ~
day, says: &
In the face of drastic declines in ~
curities values this week, it called for
not a little courage to assert that ~
der)ying conditions in Wall street wsFe
better than in the previous week. AHd
yet to look beneath the tumuitous sur
face Of things, it was difficult to ~
rive at any other conclusion. The beers
ran riot in the market and In the an
sence of organized support they sue
ceeded in forcing n good deal OF ~
quidation This unfortunate state OF
affairs, deplorable from whatever an
| gle il might be viewed, was reflective
of the more superficial aspects OF the
business situation. The street worked
| itself into fine state of nerves, and
| the bear traders made the most OF y.
The Teactionary movement at its M
ccption was logical enough as part 81
the process Of discounting the period
to follow the holiday season when, q
may be supposed, reluctant retailers WI
be compelled to make price adjustments
( more closely conforming to wholesale
and manufacturing reductions than has
been the case to date.
The banks have been pursuing
policy Of restraining too great pressure
on retail merchants with respect to
loans in the hope that the latter may
utilize the holiday trade in dsposing Of
stools bought at high prices without
undue sacrifice. Whatever success there
may be in accomplishing this purpose.
it goes without saying that the turn Of
/ the new year will see business conducted
| at a lower scale of values to the con
| sumer,
The prospect is not an alluring one
| to the business man. In his effort 20
to regulate his affairs as to surmount
difficulties with minimum disturbances,
he has proceeded to liquidate his more
| liquid assets which. in many instances,
comprised stockhoIdings. As the pres
sure of the bear traders increased.
! liquidation of that sort became more
urgent and served to bring about sim
liar movement in other quarters. The
result in the aggregate was an access
of nervousness which required some
outstanding constructive development
to allay.
Such q development was not forth
coming unfortunately and fundamentals
were quite submerged in the general de-
moralization. The situation was not
relieved materially by encouraging
statements from bankers. They could
not stem the tide which was given ad-
ditional momentum by the bad breaks in
the grain and commodities markets and
the failure of the foreign exchanges to
| hold their notable advances of the first
half of the week
The easier trend in money rates was
not needed at all seemingly. 1t was. In
truth. minor factor so far as call
loans were concerned. The demand was
not equal to the supply which CONNER
cal liquidation made temporarily pos
sble. While cali loans latterly re-
newed at per cent and the rate for
three succeeding days dropped to 8 per
cent. the banks continued to ask 8
and So per cent for time funds.
Financing inducements were accord
ingly utterly Inadequate to interest any
body when values were crumbling at
such n rapid pace. There were few
visible indications of support in any di
reCton. The final push was impaired
by the wide open break in shipping
stocks on Thursday. Up to the closing
hour Thursdays session was proceed
ing with numerous favorable features
which rendered the bears not a little
uncomfortable and there was spasmodic
covering which gave irregular strength
to the list. Then came the announce
mont of the passing of the dividends on
the two issues of American Interna-
tiona Corporation. The effect on all
the shipping shares was immediate and
losses in that group ranged from 5 to
10 points. The bears rushed into this
unexpected opening, and what they were
not enabled to accomplish in the brief
remainder of the session, they sue
ceeded in doing on Friday. Few had
tie courage to hold the stocks over the
week end and general sacrifice ensued.
In the confusion it was futile to specu-
lntc whether or not prices had reached
! lnntinm