New-York tribune., 1920-10-11

Stocks fiuctated within trading
area during the last week, and few, ex-
cept the professional traders, cared to
assume definite positions.
Toward the close Of the week thu
trend was downward, but movements
Of securities were confused and the
market was sensitive to many specula-
tive cross currents. In the absence
OF any important change in the char
acter of the Industrial news. operators
Tor the decline made organized thrusts
upon weak speculative positions, and the
tactics resulted in general unsettlemcnt.
Yet these internal connections in the
market were of little help to tho student
who seeks in the fluctuations forecast
OF future developments in the world
outside
The better grade railroad stocks were
the leaders on the constructive side. and
many of them moved into new high
ground, although the pressure Of profit
taking often retarded the advance. A
cleavage developed between the dividend
paying rails and those OF roads of less
favorable standing. Until recently the
securities Of the latter group rose stead
~ in the market, but apparently the
speculative mind last week came to the
conclusion that the position Of these
properties was not yet certain, and that
alter the big rise since midsummer call
tlon was desirable. The result wos
greater discrimination on the buying
side and a loss for the week in the rai1-
road averages.
distinguished economist shortly
aiter the armistice acutcly remarked
that those who were speaking about n
return to pre-war prices were TALKING
dead language. Now it seems that
those dealers who are so sure that
boom prices will be permanent are
speaking language that consumers
cannot hear.
The term "dchation" seems varue
to the man on the farm. The ordinary
rural citizen pro badly seldom, if ever.
permits this abstract concept Of ccono-
mists to enter into his thinking about
the prospects Of good years and lean
seasons. And yet this process of striv-
ing to reduce outstanding currency and
credit, which. with ,he falling of COM
modify prices which it causes is dcfa-
ton, affects the ordinary toiler quite
as much as the banker. The wave of
price adjustments sweeps through in
dpstry and few trades arc long immune
to the virus. The Debating Of prices
or farm products since July Is has
been dramatic in its swiftness. It ex-
plains the reason for the occasional
weird suggestion that farmers apply
the torch to their crops, instead of selling
them at current deprecated quotations.
When new low prices for the year were
established early last week for cot
ton, wheat and corn, the value Of the
crops, compared with their dollar worth
measured by the quotations of July
Is, had fallen about three and quar-
ter billion dollara. The depreciation
in cotton amounted to thrce-quartera
of billion; corn, moro than Il billion
and three-quarters, and wheat, two
thirds Of billion dollars. Obviously,
such establishments will radically re-
duce the amount Of banking funds
needed to finance crops.
In the present year Congress and the
Interstate Commerce Commission have
encouraged the students of the rail
road problem by revealing a construct
i've attitude toward the carriers. The
now rAIlrOad act and tho nhseruant