New-York tribune., 1920-08-06
Stocks Depressed
AS Bears Attack
On Rumors of War
Crash in Middle States
Oil Thrills Market Fol-
lowers Already Accus-
toned TO Sagging Prices

Fear of an impending catastrophe
in Europe yesterday was employed by
professional traders as a weapon with
which to attack security prices. and
none performed market operations
with confidence except the sellers
The news from the Old World up to
the time buying and selling stocks
ended was vague, but the rumors
which trickled into the marketplace
were alarming. With Europe's fnan-
clal and economic structure battered
from the great war, bankers looked
with dsmay upon the possibility of
resumption of general warfare on the
continent. And yet in unreliable form
stories reached the floor of the ex-
change to the effect that Great Britain
was mobilizing its navy and calling
FOR volunteers for it's army.
The prospect of a new general war
in Europe seemed unreal to those
who understood the consequences of
such a contingency, and still there
was nothing in the days Developments
to indicate an easier solution of the
Central European mess. Holders of
securities seemed to be walking
around passively, doing nothing but
hoping piously. Technically The mar
ket was therefore without constructive
support, and professional operators
perceived an opportunity to strike
effectively on the bear side of the
market.
Securities yielded to the selling
pressure, and sharp net losses in many
issues were registered. In the fore
noon the market vacillated, some
stocks rising, others declining; later.
under the stimulus of short selling
and further liquidation, some stocks,
notably Middle States Oil. American
international and Mexican Petroleum.
lost from 5 to 10 points, and declines
OF from l to 3 points were frequent
among both railroad and industrial
securities.
Inc decline came in the face of con-
tlnued easy money. The renewal ra+o
Tor call loans was again T Der cent
and later IN the day money was offered
at 6 per cent. The transitory improve
ment III the call loan situation on the
Two previous days tended to check the
wave OF liquidation, but yesterday tho
phobla of the speculative element in
regard to the Polish situation burst
through the restraints of a momen
tarlly easier credit situation and dom
mated the market.
In the opinion Of competent observ-
ers the selling pressure on the market
can be relieved easiest by a chance in
me european situation. The matter
OF a recession in industry is giving
less concern, as it involves better un-
oerstood factors. The rise in tho
wheat market, together with the break
IN stocks, was looked upon bv tradnr.
as a clear indication that the Euro
pean matter was the moving force in
the speculative marts.
Inc sllcing in half of the market
value of Middle States Oil around noon
was the spectacular feature of the
market. Even after months of declino
lr security prices observers felt some.
thing of a thrill in watchinp tbi~
stock shrink with such SENSATIONAL
velocity: Until Middle States col
lapsed from 201a to less than 1OH thc
market was acting fairly steady, but
ilS performance encouraged the bears
and they made perceptible progress in
making the other oil stocks. especially
OF OF 'he newer companies, cheaper for
nose VINO now would buy Extremely
nnfeaVy selling orders were placed for
Nlddle States on turnover Of 25l COO
shares. The uncovering of wcaknassos
was 1acliltated, it was said, bv the
calling of loans against yec3ritios 'i'e ;''
faith. ''"' ''''u ioS'
d., L. & W. was one Of the excon-
tlons to the trend In the morning il
rose nlne points on reports that it was
soon to segreGate its coal properties.
ana despite the general price tendencl
IN the afternoon it closed with a ,,ain
or tour points over Wednesdays final
QNatatlons.s Toward the close OF tradinr
some stocks showed a tendency TO re-
cove, but the movement was irrepular