Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-11
STOCKS SENSITIVE
To BEAR PRESSURE
Technical Position, However,
Such as to Minimize Like
lihood Of Big Break

New York, Dec. 1.-THE Evening
Sun in its weekly financial review today
says:
For reasons readily to be explained
buying power was feeble to a degree in
the securities market this week. The
size Of the short interest induced cover
ing In uneven volume. Buying for the
investment account fuctuated from day
to day. Neither source for acquisition
was entirely to be depended upon as
constituting n basis Of strength. 1t was
also to be noted that there were still
some sizable accounts liable to liquida-
ton. While IL seemed true enough that
the technical position was such as to
minimize the likelihood Of wide open
break in values. the list was rather
sensitive to determined attack in any
Of 13 points In WHY'S Overland pre-
ferred shares on Tuesday and of IS
points in Pierce Arrow preferred on
Wednesday. The pressure bore down
on the motor group in the first instance
and then on the remainder Of the list,
industrial and railroad descriptions
alike. The situation appeared to re
fleet mental suggestion rather than ele-
ments Of positive weakness.
The process of readjustment has gone
far. but two steps remain to be taken
before It can be mpleted-reduction in
retail prices to conform TO the reduction
in wholesale and manufacturers prices
and the marketing of farm products.
The one step is slow in developing be
cause of the promise held out by the
holiday trade and the other because of
the agitation for farm credit legislation
in the present session of Congress. Aside
from the effect of both on the credit
situation they serve as a deterrent to
business in general and TO constructive
operations in the stock market in par
ticular. II is assumed that the two mat
ters will come to head after the turn
of the year, and it is improbable, there
fore, that constructive influences will be
given anything like full play for several
months to come. Commercial casual
ties. already on the increase. are an.
ticipated for the early months of 1921
rather to the exclusion of considerations
Of the real progress which has been
made in post war reconstruction funda
mentals. This observation applies more
to those concerned in day to day dcvel-
opments Of marketwise influence than
to those who study the economic situa-
ton as a whole.
While it Is IN open question whether
the decline in commodity prices has not
been too rapid from the point Of view
Of the manufacturer. the wholesaler and
the merchant. it remains true that the
consumer has not yet been brought in
direct contact with price levels that
make strong appeal to the buying in
stinct. In November, price cuts were
the heaviest since February last
Bradstrcet' y index number as of Decem-
Der was S13 3.G263. representing a de-
| cline of IL per cent from November ] Z,
| and Of 34.6 per cent from February
! While this shows the general level of
wholesale prices to be below that pre-
vailing in the months preceding our
break with Germany, it is still J6 per
cent above that Of August |, 1914.
when the war in Europe broke out.
Only small part Of this decline has
reached the consumer. and that only
in certain commodities, whereas the
spectacle Of the decline itself encOur-
ages the consumer to hold back not only
in the hope of still further decline.
but also until such time as the retailer
will be forced or persuaded to meet the
individuals revised ideas Of value.
In addition to anticipationS of mcr-
camille difficulties in the new year, there
| is the element of labor which involves
a social aspect not wholly reassuring.
Several instances came to hand this
week of curtailment of hours of labor
| in order to postpone the inevitable wage
| readjuStment. 1t is not conducive to a
settled state of affairs that the matter
| Of wage revision should come at time
when the laborer still finds it necessary
70 nav approximate war prices. The
ono nrobIem presses on the heels of the
other md both are facing deferred solu-
tion At the same time. credit condi-
tions leave much 70 bc desired. The