The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-06
FINANCIAL NEWS
AND COMMENT
Downward Movement in Stock
Market Continues Without
Fresh News.
RAILS ONLY EXCEPTION
Principal Selling Affects Ship
ping Issues-Motors Fall
to New Lows.

There was very little variance be
tween yesterdays session of the stock
market and those OF preceding days
this week. The downward movement
was continued, with activity entirely on
that side in so far as the Industrial
stocks were concerned, and simultane-
Iously with the fresh selling Of indus
trial stocks came a renewed outburst OF
liquidation in cotton. in grain and In
the foreign exchange markets. The
single exception to the downward move =.
rlent In the financial market was again
provided by the railroad shares. notably
The high grade dividend paying Issues
which figure prominently in the segre-
cations, cash distributions. stock divi-
bends, &C., which Wall Street Is talking
about, but even these issues could not
hold up against the selling which came
iato the market in the last hour. Thu
net result of this selling was only a
fractional decline In the rails. but In
the industrials the days declines brought
the averages down to within half 4
point OF the absolute low OF the year,
which was reached early last month.
AS on the preceding day, the marke'
won't down without any fresh news
whatever. 1t may have been that tn I,
liquidation In cotton and grain gave
fresh evidence OF what some interests
along, that the process of adjustment
In stocks has not been fully completed.
/ but there was no bad news which
n light have been used as an excuse for
selling stocks. It was simply another
example of tho lack Of buying power.
OF business uncertainty, OF doubt
whether the market has fully discounted
tho business depression, but even where
Wall Street agrees that stocks have
| t1ht 20 O
! there was no sign of support yesterday.
The motor shares, for instance. which
| Wall Street said a month ago had fully
! discounted the price cutting, were fully
| as weak as the steel shares, which are
enc of the groups that have been place.
10 the doubtful column in so far as tn!
rr.ce readjustment Is concerned
The principal selling yesterday. how
| ever, came in the shipping shares rather
than In the steels, motors or ruope
shares, although they too experienced
their full share of the selling. The snip
| ping stocks went down more easily thar
other groups because they have thus ia
experienced comparatively little read
justment Atlantic Gulf and West In
| dies opened Off 8 points, and the marin'
shares, and also American Internatfona
| CORPORATION, which is classed as snip
ping stock, gave way very easily also
The motor stocks all sold at new low
for the current movement, and some o
them for the year. while selling OF tn
steels, notably Steel common Itself. wa
very persistent throughout the day. tina
stock came within fraction of eQuallini
its low made last month. The railroad
| stocks. on the other hand, did very wei
throughout the early part of the day
with Northern Pacific very prominen
again along with Reading, but these
issues were overwhelmed in the last hou
by the weakness of the Industrial group
There was no change for the better IL
the money situation, despite the predic
ton that money would ease off again II
the last hour. II was firmer. IL any
thing. yesterday than heretofore. blu
bankers did not let the rate get above
10 per cent. It is felt in banking circles
however, that money will work easier
some time next week, although no rea
ease In money can be expected for the
| rest of the month. The bank statements
are expected to make poor Showing
again to-day, and It Is understood thai
credit requirements will be shown to bt
right at the peak again. Much more
interest, however. Is being manifested
iust at present In the renewed declines
| OF foreign exchange markets than In
money. With sterling down 20 approx
! imately $40 yesterday. with lire at ar
| absolute new record and with francs
down at their lowest prices since last
| May. the Street was inclined to believe
that these exchanges would go lower
before any substantial Improvement
would set In.