Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-09
WAR CLOUDS BRING.
VIOLENT BACKSET
Market Crumbled Under Tre-
mendous Liquidation, but
Rallied Vigorously

New York. Aug. 9.-Semidemoral
lied conditions prevailed in all the prin-
cipal markets today as result of the
threatening war clouds in Europe. The
more serious aspect of the Polish sit
uation, as result of the rejection of the
allied truce terms by the Russian So
Wet government. caused violent slump
in stocks. carrying a number of issues
to new low figures for the year. in
many cases to the lowest levels touched
since 1917.
The acute situation was directly re-
iected in violent drop of cents in
sterling exchange, and the rates on
other countries dropped 10 to 30 points.
There was also a severe slump in The
cotton and coffee markets. but as usual
the possibilities Of fresh European out
break caused equally sharp advances
in the grain markets.
The improvement in local banking
conditions reflected by Saturdays clear
ing house statement was lost sight of
in the frantic selling of stocks when
the market opened and which, during
the first, reached closely to the proper
tions of hysteria. There was Wholesale
liquidation in almost every quarter of
the list. with virtually no discrimina
tion between the good and bad. the
one apparent set idea being to get rid
of them at the best price obtainable.
AS matter Of fact stocks were
dumped overheard by the wholesale.
This did not apply only to the indus
trial shares, which seemed to be most
vulnerable, but extended to the stand
n rI fliyilp nl n wing wills tynl1 ~
der this avalanche of selling the whole
list crumblcd and before the down
ward plunge was checked by midday
losses from l to 10 points were gem
eral.
The tremendous flood of liquidation in
the first place was q natural sequence
to the impairment Of marginal accounts
by reason of the disastrous downward
movement which prevailed all through
the last week. The enforced charac-
ter OF the selling in many quarters of
the list, while intensified by the con
ditions in Poland. also reflected the
acute money situation and the antago-
nstic attitude of the loanng institu-
tions toward speculative combinations
and pools that had been concentrating
their efforts on various industrials and
railroads,
The manner in which many of these
stocks were forced on the market was
ample evidence that pool holdings were
being dumped without regard to price.
At least. nearly all the stocks generally
known to be held in pools were among
the greatest sufferers on the general de-
cline. There was also considerable SELL
ing by many who had taken the con =
structive side on the strength of the rate
advance.
The extreme weakness of a number of
individual shares caused fitful rallies at
times under the impetus of short cover
ings. but the main trend was definitely
downward. United States Steel. Beth :
lehem Steel, Republic Steel, Baldwin
Locomotive and Mexican Petroleum
were among the representative shares
which established new low prices for
the year.
The depression ran from to ) points
| in a large number of stocks. Selling
orders affected many of the seasoned
| dividend paying railroad shares, ant
there was large outpouring of numer,
Gus low priced industrials which have
recently been weak.
Stocks continued to be offered freely
on all rallies, representing a mixture OF
bear selling, offerings by discouraged
| holders and liquidationS of weekly mar.
gined accounts. Some of the declines
as the day progressed. were of violent
character. American Express fell II
points, Delaware, Lackawanna 4
Western S. Atlantic Gulf ~ ant
Baldwin, Cruciblc. Mexican Petroleum
American Sumatra Tobacco, American
Beet Sugar and Utah Copper between
and q points. Easier tendencies
with call money being supplied freely
! ut & per cent, caused an extensive rally
in the afternoon in which recoveries
ran from l to points.