Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-24
HEAVY POUNDING
Of |NDUSTR|ALS
Wave Of Commodity Price Re-
duction Gives Bears a
Powerful Lever


market reflected more clearly the change
Of sentiment in speculative circles aris-
ing from the latest campaign against
commodity prices. The wage of price re-
''uctions which has arisen in the auto.
mobile and commercial fields caused
further unsettlement in the industrial
division, while the railroads continued
% exhibit the same consistent strength |
without. however. making much head
way. Price movement in consequence
was considerably mixed and uncertain.
The prevailing impression that the
pi ice cutting is certain TO extend to
| other quarters Of the industrial world
! found reflection in the renewed weak
ness of the food shares and allied spe.
cialties. Rather positive statements
were made of a probable sharp cut in
metal prices, particularly in copper,
while on all sides 1t Is belieyed a re-
vision downward In steel prices is in
evitable. In some quarters reports were
circulated freely that prices OF crude
oil were likely also to be pared down
materially. While these stories were
circulating, however. the prices Of three
grades Of crude oil were actually ad.
vanced.
1t is generally felt that oil this
liquidation In mercantile lines Is a step
in the right direction. because IL is
getting industry to a normal basis and
10 making a sound basis for future pros.
perity. Many critics voice the opinion
that the market has pretty we'll dis
counted commodity price dehation. The
long period Of declining security prices
through which the market passed the
current year. had its significance and is
now better understood.
Nevertheless, as the day progressed,
it was quite evident that the falling
commodity prices had given the reac-
tiopary or bear party a powerful lever
not only In forcing lower prices, but
also influencing considerable selling in
many parts of the industrial division.
In fact, to such an extent as to super
sede as a market influence the money
situation and other factors which for
some time have given Wall street con
siderable bother. Money rates. it is
true, were relatively easy. The call
loan renewal rate was maintained at
per cent, and new loans carrying
over until Monday were made easily at
that rate. This. however. failed to
rally the market. as did the announce e
ment Of the postponement of the
threatened big English coal strike fol
smother week. There was a scramble
OF the shorts directly after the open
ing, but the movement was short lived
as the bear crowd found little difficulty
in getting the stocks they wanted.
Pressure upon various issues, par
II ticularly the motors, oils. shipping
! "ubber and copper shares. was activel,
4 resumed at the outset. many Of thes,
shares recording. further losses Of !
10 points. \ few leaders. notably tn,
nigh priced oils, rallied within the frs
Naf- hour. which checked the reaction
'or the time being.
| Food shares and allied specialize
we're later under attack. Wilson Pack
ing losing . points. California Packins
"a, and Montgomery Ward l. Metal
continued to sag with motors, steels
equipments aud tobaccos. The latte
soon rallied, however, with Mexican Pc
troieum,, Baldwin Locomotive, Atlanti
st. Paul, Colorado Southern and LAX
Erie and Western Preferred wer
strong, gaining to 81 points with sue
seasoned issues as Norfolk & Wester
and Northern Pacific. but correspondent
declines were made by Chicago, Grea
Western preferred, st. Louis, South
western preferred and 800
Rubbers, particularly tire issues
weakened consPicuously under heav
pressure. Fisk, Goodrich, Ajax
Kelly Springfield and United State
II Rubber showed overnight losse
of to points. Crucible and Unite
States steels. Baldwin Locomotive an
II Mexican Petroleum were comparative
steady with junior rails, notably Ne
| Haven. Denver and Rio Grande pre-
ferred and Kansas and Texas preferred
II specialties added to their losses !
the last hour but representative steeli
rails and oils made partial recover!