The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-17
STREETS VISION
OF PUNISHMENT
By BRoApAN WAN

New York, Feb. ie.--AftSr q strong
f%oceafng today stocks tnarnersately be-
SSsae heavy and within an hour had
lc1k Ill the advances and before the
III dAF closed nome new low levels had
N Been made.
The better class Of stocks suffered
4 ssncst severely because>~it was more
question Of banking acconnn1 :
Mors than OF values The technical
y conditions were such as 70 make
aMnGher downward reaction a matter
6< course. This was helped by the
4 presidents action in regard 10 the
Y Anrfassc question and changes In his
esahanet, Action Of the senate IN the
n AFTERNOON in hating the sale os ships
sssss The shipping beard wiSened the
q sareaah between the executive and
the iegsslst4ea departments to such
4 an extalt that political considerations
d WIFI from row or be OF great stock
Z - sr4z4t aEaa3a-s2r.ftal3c Sc
wall street tancles that II sees IN
\ the continued tightening OF the mon
*sey market ga attempt by Washington
+ 10 punish the banking interests
-4oney was loaned today st noEat-
nal rates. renewal being and the
faM loans at s per cent, but there
was no money at ali Without tin1e
Il money brokers are in a delicate SIT
uAt3ar. Their predicauent is re-
neete5 i@ ths uneasy feeling OF in-
ss$tors who are carrying Their STOCK
oM margin and who are becoming
rege5ye Under the repeated enuncia-
e4oEs from Washington. Regardless
cf earr.rg&s' Is Tia opinion Of care
III market students hist there can
tie no substantial recovery until
:igaA money Is available.
while the whole market was weak
A. the close the pressure IN General
-fot0Ea and Crucib!e attracted most
attention. The former went 10
latrer began 70 yield for The first
tiHte s'7cs ire recAnt market dis
T74Faartss we're started.
TTaised States Steel was one OF the
sa.sSt depressing factors OF the day
fcE the"e ras continual selling %
IT, Iris vas particularly depreSs sing
IA yia7r ~ the fact that the com paty
ksa peFna9s tie best trade outlook
OF any az the great corporations 1t
es-xr taslzed the tact that this market
il o. the mercy Of she time money
saEsers ard they iniurn az the mar
eS Of the government The federal
reserve banks reserve fell Off over the
whole country last week. The reserve
WAS 432 compared with al the
precious week and SIS the same
wtak year ago. In spite OF the
III
~ The reserve board to force liouica-
tsan ef commodities held for market
Esaks say they co not dare force
mercantile borrowers as ttsy force
stnck market borrowers for It would
zsean numerous failures The whole
saiers have bought their commodities
al such high prices that they can
laauadate only at great losses and the
Losses In wery many cases would Sfipe
OH their entire capital
Ore CT tbs astonishing things
about the present stock market is the
absence Of failures. Il is feared
that such condition Will not be
characteristic OF the liquidation Of
Commercial loans. In many lines OF
goods the retail prices are but a
shade above the wholesale ones
I which means that when the break
comes II Will be a bad one Whole
sasers are over bought and the tech
nicaa situation there Is just what it
svss IL the sterling exchange market
feao-e ghe recent collapse Of the
round from $40.
BALDWIN LOGON olive is In a very
eonad position ~ take advantage al
n saae great demands Of domestic rail
reads when they are turned back "a
rrtvsJe ownership. There has been
good inside buying % this stock re-
ported all during the recent slump.