New-York tribune., 1920-08-18
Bear Operators
Apply Pressure
To Industl.ials
Short Selling Causes Fresh
Decline Without Much
Recovery; Professionals
Control; High Money Rate

Yesterday was reaction day in the
stock market. Tho bear party had
things pretty much its own way from
the opening to the close. The short
selling contingent applied pressure to
the industrial list early, and finding
many issues vulnerable to attack, gave
stocks little respite thereafter, so that
the market slumped badly in spots,
and closed not far from the bottom.
A narrow trading market such as
Wall Street is now experiencing re-
fleets little more than the whims of the
professional operators and the floor
traders who Buy and sell stocks mere
ly to catch the swings and scalp profits
regardless of outside developments.
Yesterday the news seemed more hope
full. At last the financial community
thought the advices from the theater
of war in front of Warsaw NOR, op-
tin.istic Yet this did not bring about
any change in the attitude of the pro-
fcssional element in control of the
market. There was the same absence
of buying power that has made the
market so susceptible to bearish ef-
fort for several weeks.
The market, as many financial OBJ
servers see it, is still adjusting itself
to the present uncertainties of indus
try and trade, and the best that can
be expected of industrial stocks in
this trying period is great deal of
backing and filling with the bear
party standing ready at all times to
sell stocks on the least provocation.
OF course the worst feature of the
market is the absence of buying power.
If prices are to rise, there must be
sustained buying. But as matters now
stand few people are willing to buy
stocks; in fact, about the only demand
comes from the short sellers. One
does not have to look far to find an ex-
planation for this apathetic attitude.
The public quit the market early in
the year.
In yesterdays market the profess
sional bears showed little discrimina-
ton in their selling operations, offer
ing most of the leading industrial
shares freely. Motors were attacked
early in the session, then the oils were
taken up, later the equipments, ship
ping shares, and steels. 1t did not
take a great amount Of selling to knock
prices down, for the list did not offer
| much resistance even at the end of the
session.
Mexican oils were under special pres
sure when the bears made great deal
out of rumors of serious friction be-
tween the American producing in
terests and the new Mexican govern
ment. The decline in the shipping
shares was attributed to reports Of an
impending slashing of ocean freight
rates. American Ship & Commerce
proved an exception to the general
trend, moving up on the announcement
of the completion of agreement be-
tween the company and the Hamburg
American Line. Rumors Of new financ-
ing were made the pretext for selling
Atlantic, Gulf & West Indies.
Government operations caused some
Tightening in money at this center
yesterday. The Treasury withdrew
sS 100000 from the denositary banks,
which made necessary the cabling Of
loans. AS result the call rate rose
to 8 per cent late in the afternoon
after renewals had been made at T
per cent. The foreign exchanges were
quiet.