New-York tribune., 1920-04-20
Stock Market Is
Weak in General
Selling Movement
Unsettled Condition Follows
Report of Temporary
Panic and Collapse in
Japan; Industrials Weak

One or those sudden shifts in senti-
ment for which Wall Street is noted
spread blanket of bearishness over
the stock market yesterday. Profess
all day long, taking to the selling side
early and holding their position con-
sistently. Their offerings were not
we'll taken and induced scattered
liquidation Of weak speculative ac-
counts, adding to the general unsettle-
lnent. The market closed at about the
days low prices where the majority
of industrial issues showed extended
losses, running in many cases to sew
eral points.
The financial community appeared to
be much concerned over the vague re-
ports of disturbing developments in ia
, pan where, if meagre advces received
to date are to be relied upon, the after
math of a great wave of speculation
has come in form of a temporary
collapse in an inflated economic struc-
ture. The adverse effect upon senti-
ment of the course of events in Japan
undoubtedly was one of the most i'm
portant factors in the local financial
markets yesterday. In the cotton mar
ket, in which Japan has been an active
buyer in recnt months, prizes slumped
sharply.
Wall Streets interest in the Jap
anese developments lies chiefly in the
effect the upheaval is likely to have
upon the disposition of the large bal
ances Japan carries in New York and
London. Recent estimates have put
the total of these balances at in ex-
cess of $550,000oO0, of which the
greatest part is held here. This
amounts to q call upon our gold sup
ply. In the event that Japan should
lind 1T necessary to transfer these bal
ances to Toxic it can readily be seen
that 1t would have far-reaohing effect
upon the banking position in this
country through loss in gold reserves.
However financial representatives of
Japan express the opinion that no such
action is likely to be taken at this
time.
The stock market started out with
fairly firm tone and for brief perl
cd showed indications of carrying
ahead the advancing movement of last
week. Soon after the opening, how
ever, professional selling began to be
felt and the pressure from this quar-
ter increased when the renewal rate
for call loans was fixed at 8 per cent
The high renewal rate did not fit in
we'll with the predictions last week
that easier money was in prospect.
Out III CHe AFTERNOON money was more
freely offered, the rate getting down
to Z. per cent without bringing any
rally in the market. Brokers reported
that the West was heavy seller Of
stocks most of the day. The feeling
regarding the market was that selling
by pools, which were encountering diff
ficulty in carrying stock because of
high money rates, was an important
influence on prices. Steel common was
one of the weakest of the standard
issues. The trading element that has
been talking about larger dividends
on the stock we're disappointed by the
statement of Judge Gary at the an
nual meeting Of stockholders that if
the money now paid out for expansion
and improvements were paid in di-
vidends it would be to the prejudice of
the company and its permanent stock
holders. There were few strong spots
in the market, about the only notable
exceptions to the general weakness
being Pierce Arrow and one of the
speculative sugar stocks.
The foreign exchanges were quiet,
with slight changes. Announcement
was made that $1O00O,O0O is to be
shipped to South America on the next
steamer.