The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-01
FINANCIAL NEWS
AND COMMENT
Railroad Shares Make Further
Progress, While Industrials
Go to New Lows.
MOTORS HEAVILY SOLD
Money Reaches 8 Per Cent,
but Is in Little Demand
Exchanges Drop.

There were virtually two separate and
distinct markets in stocks in Wall
Street yesterday. On one hand the
railroad shares made further notable
progress on the up side. while, on the
other hand industrlals went to new
low ground under the influence OF bad
news from trade circles. The down
ward movement In industrials was not
quite as general. however. for the first
half of the day. Rather II was con-
fined to special groups of stocks such
as the oils and the motors, which were
picked out by traders because they
looked more vulnerable than did other
issues. but at the closing the weakness
spread to the general Industrial group,
hating the advance In rails. The rail-
road stocks did not lose much more than
n fraction OF the days advance not
withstanding the selling. but the in
dustrials were extremely weak. AL
though several stocks did not go
through their previous lows. the in
dustrial averages nevertheless recorded
new lows for the year at 81. IS in con-
trast TO $500 on August g.
So far as the Industrial stocks were
concerned, the markets action yester-
day was perhaps even more discourage
ing to observers than il had been The
professionals plainly tried to rally in
dustEal issues at the outset and along
toward noon. but as the market failed
to respond TO those efforts stocks pur-
chased in order to rally the market
were dumped overheard regardlessly
There was little ac, lal change to re-
port in the price situation. IT was
rumored during the day that General
Motors would announce its price re-
duction and 1t was reported that the
Wtlys-Overland Company had closed
its plant, but those developments were
only incidents in the decline The real
reason for the decline lay IN the
broader aspects Of the price cuttin"
situation and the fact that there had
been no real resistance to the selling
movement. The buving yesterday came
from the shorts, just as it has all the
way along, and as before, big traders
showed no disposition to cover their
commitments.
While the industrials were having
their decline the railroad shares once
more were subjected to n very insistent
decline on the buying side. and il was
noticeable also that that demand In
volved the better grade Of rails for the
first time in recent weeks. Such stocks
as New York Central. Atchison and
others made very notable progress, but
the low priced issues were not neglected
altogether There was an excellent de-
nand for the st. Paul stocks, which got
above 40 for the common and around
GO for the preferred. The selling of the
ndustrials was on the other hand just
as persistent as was the buying of the
rails. Steel common was not allowed
TO rally as much as a point at any stage
of the trading. and 1t closed within an
eighth of the low for the entire move
ment. But the most insistent selling was
in the motors. General Motors was
dumped overheard in large blocks and
sold at new low record, as did Studc-
baker. But 1t was the opinion Of good
judges that the market in those particu-
lar issues was being overdone.
The money market got to per cent
rs had been expected. There were with
drawls yesterday. and preparations con-
tinued TO meet the first of the month
interest and dividend disbursements to-
day. That furry. however. is only TEN
porary. and Is not expected to last much
longer than to-day. If. indeed. money be
not easier to-day. There was very little
demand for funds at that rate yesser-
day. and it was only because the banks
were pinched for the moment that money
was allowed 90 so as high rs 1t did. The
money situation is in reality very much
improved compared with what IL was
last summer. But now that money is
easier, the thing that is preventing
demonstration i'm the Industrial stocks Is
the price cutting campaign, which ap-
pears to be just getting under way. The
exchange market was lower. with ster-
ling off again.