New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-14
Stocks Decline
Again as Bear
Operators Sell
Market Proves a Disappoint-
ment to Bull Contingent;
Trading Is Less Active and
Money Is at 5 PEI Cent


wavering movement of prices. The
Street began to talk about REFRESHING
influence Of high money rates and che
serious transportation situation with
its throttling effect upon industry. For
the second consecutive day this week
stocks declined and failed to display
much rallying. power. Traders who
keeping with the general trend of
speculative thought were less enthusi-
astic about the immediate outlook,
while the bear operators, encouraged
by their success on Monday, made the
most of the situation.
Considerable selling for the short
account came into the market during
the course of the session, and it was
the steady and persistent offerings
from this quarter that pushed prices
downward. The absence of real buy
ing power made the task of the bears
just SO much easier, and for this
really were. 1t was perhaps significant
that the volume of business contracted
with the development of declining price
tendency Last week it was the other
way around, business expanding rapidly
as prices moved ahead
Many observers yesterday were of
the opinion that the market might
settle back into the professional rut
of fortnight ago if money market
conditions did not improve more. Pools
organized to exploit number Of the
industrial leaders are said to have
found the short money supply a serious
so that they are not likely to do much
until there is a promise of more
liberal offerings. Borrowers at the
Stock Exchange had to pay renewal
rate of per cent on outstanding GALL
loans, and this was the rate quoted
throughout the session for fresh offer
ings. Rumors of more liberal offerings
by the banks Of fixed date loans-in
some quarters it had been reported
that time money could be obtained at
TIA per cent-provcd without basis in
fact. Some small amounts of time
money have been put out recently
around per cent, but even at that
level the supply is scant by reason of
the present policy of the banks against
putting out time funds for stock market
purposes. Commercial borrowers con-
tinue to pay TX to per cent for &C.
commodation. The Treasury withdrew
$11 900 900 of its funds on deposit with
local banks yesterday and will with
draw another $11,000,000 tomorrow.
These transactions have tended to
tighten UP the money situation at this
center temporarily.
time yesterday after opening at a
higher range, and it appeared that
much of the ground lost the previous
day would be recovered. Gains Of point
or more were registered in the more
popular speculative media, but the
support was not sustained, and as
soon as the market showed signs of
yielding from early highs the bear
clement rushed in and sold stocks
freely. The weakest issues were the
equipments, the steels and American
Wooden. Oil shares did much better
than the general run of stocks, Mexi-
up strongly in the late afternoon on
rumors that the company has COM
pleted large gushing we'll on one
of it's Mexican properties. The rails
were something of a disappointment
after their splurge on Monday, for
the movement appeared to have lost
its momentum completely.
The foreign exchanges moved in
favor Of New York and sterling
rates were the lowest in more than
fortnight. limitations that Eng
land has or Is about to assume large
part of the French government loan
obligations to the United States as
result of a trade whereby French will
withdraw her opposition to the re-
opening of trade relations with Boil
shevik Russia aroused great deal
of interest in banking cirlces. The
news, however, was not a factor in
the financial markets here It has
been known for some little time that
Britain was planning to take care of
the French governments half of the
$500,000,000 Anglo-French loan matur-
ity next October.