New-York tribune., 1920-03-01

tion with larger and more powerful
systems.
The decline in the industrial stock
list which was resumed last week
was forced to considerable extent by
the persistent pressure brought to
bear upon these issues, particularly
the higher priced shares, which were
naturally more vulnerable to attack.
The steady selling from this quarter
alone caused substantial price re-
cessions which, in turn, impaired
margins and resulted in renewal
Of liquidation. Unloading of specu-
latively held long stock was particu-
larly heavy in a number of the indie.
pendent steels, notably Republic Iron
and Steel common and Lackawanna
Steel. There was a special reason
for the pronounced weakness in these
two issues. The annual reports for
the two independent steel companies
covering 1919 operations made an
extremely bad showing, as compared
with 1913. In each case only little
more than a dollar share was
earned on the stock, compared with
more than $40 share the year be-
fore. Publication of these reports
was followed by heavy selling of all
the steels, which was only checked
toward the end of the week when the
professional bears covered a portion
Of their outstanding short commit
ments in order to take their profits.
The outstanding feature Of the
stock market last week was the alb
sence of anything like real buying
power. The biggest part of the de-
mand for stocks came from traders
who had sold in anticipation of the
decline. Excepting perhaps in the
railway group, the demand for
stocks from the public was prac-
tically nil. This condition as re-
CARDS the industrial shares has been
brought about largely as a result of
their sharp decline since the latter
part Of January and the pessinlistic
reports that have been spread rola-
tive to the outlook for business. In
this connection it is worth noting
that business men in various lines
are said to be hesitating about MAX
ing new commitments because they
consider the fall in the stock market
as indicative Of an impending slump.
The belief that Europe's effective
demand for American commodities
IL 1920 will be considerably smaller
than last year seems thoroughly to
have permeated the business COM
munity. Observers are realizing
that in many lines of manufactured
goods Europe is our natural COM
petitor instead of logical market,
and that trade with the Old World of
the character done since the out
break Of the war cannot survive Eu-
ropes recuperation from the wounds
of battle. In view of the indications
for weeks that the volume of CON-
merce with Europe was already
shrinking under the stress of falling
exchanges, the January export fig
ures of the Department of Commerce
came as a distinct surprise. They
not only presented January as
much better month for exports than
the previous month, but also showed
striking gain over the same period
a year ago. Mr.. Davis, secretary of
the National Foreign Trade Council,
challenges the authenticity of the
statistics, and points out that be-
cause of insufficient personnel the
division of statistics was unable to
keep monthly reports open for be-
lated returns and therefore incorpo-
rated them in those Of the current
month. The February statistics
should, If this theory is correct, re-
fleet the contraction.
However, farseeing business men
are urging campaign to stimulate
sales to the Orient, South America,
Africa and other non European mar
kets. In these other places, they
feel, American merchants can find
more permanent outlets for their
manufactures. Japan in recent
months has been an especially heavy
buyer Of American machinery and
miscellaneous merchandise, and the
tide of trade between the two coun-
tries has turned in our favor. Yen
have been easier for more than
week.
Many British statesmen Of finance
predict that the pound sterling will
soon occupy higher place in the