New-York tribune., 1920-05-18
Stock Market rs
Exceedingly Dull;
Bond Prices Drop
Credit Situation Due to Rail
road 1ie-Up and Other
Causes Brings Selling of
War Issues; Money at E

ohc WouAu naEc W possess ieTtllc
imagination to find anything of sig
nifcance In yesterdays professional
drifting match at the Stock Exchange.
1t reflected a continuing unwillingness
Of the majority of traders to enter into
new commitments until the outlook is
more promising, and that was about
all. in five hours dealings barely ex-
ceeded half million shares of stock.
There were times when the ticker had
nothing to record. At the close prices
tended to harden slightly as money
rates eascd off.
stocks showed no signs Of getting out
Of the groove in which trading opera
| tons have been running for almost
fortnight. Lacking the stimulating in
f1uence of constructive developments
over Sunday, stock prices moved slug
eishly and irregularly, showing no
clearly defined trend and indicating
iltrle more than the results Of halls
hearted, professional effort.
Although Wall Street placed an un-
Favorable Interpretation upon the news
of the preceding forty-eight hours,
especially the request of the Associa-
ton OF Railway Executives for assist
ance OF the Interstate Commerce Com
mission in helping the transportation
INES out Of the worst freight conges-
tlon IN nearly three wares, the bear
element did not appear disposed to
carry their operations much further
on the short side. This was probably
because Of the knowledge that the
snort interest is already of large pro-
portions.
The developments in the railroad
situation served to emphasize the seri-
Gus problems with which business and
industry are struggling. There has been
no attempt made in Wall Street to
mlnlmlze the seriousness of the sjtua-
ton and cognizlnce of the stranglinr
effect of the Blockade has been one Of
the chief influences in slowing down
the speculative securities market In
dicatlons are that a return to some of
the emergency measures of the war
period may have to be had. such as
pr,orlIles IN consIlgnments. pooling Of
equipment and other drastic steps. in
order to break the freight jam. The
ehect OF the tieing UP of goods in
transit is tar-reaching of course, and
even though early relief is obtained it
VIII take long time to get back to
normal basis. Bankers estimate that
hundreds of millions of dollars in
cfed!t are "trozen,'' SO to speak, By the
lnaolHty OF manufacturers to market
,helr goods. Naturally this imposes a
iteaVy burden upon the banks at a time
load. nus
r one OF the outstanding feature in tho
financial markets yesterday was the
cohtlnued selling of investment securi-
ties, The Liberty Loan issues as we'll
as otner high grade investment issues
were pressed for sale with the result
that prices IN the bond market declined
again. Several of the outstanding
united States government war issues
cropped to new low record levels. The
Fourth AS, on turnover of more
than s5,o000oo, fell to S4.36 after sell
ing at 85.04 earlier inSthe day. Liqui-
cation of these bonds is being forced
largely by the inability of business in
terests and industrial corporations to
obtain sufficient credit at their banks.
with credit curtailed they must cover
their needs in some other way and
naturally they turn to their holdings
Of war bonds. One corporation con.
cluded last week the sale of S25, ,OO0, 900
of Liberty bonds. The decline that has
taken place during the last month and
a half has carried prices down to a
level where these issues are exceeding
~ attractive. 1t has been great
many years since one could purchase
United States government securities on
such basis as at present. 1t is only
question of time before this will be
reco&ized by investors.
WWle the statement of the local Re
serve Bank at the end of the weel:
was less favorable, call money was in
better supply and after renewals had
been made at 8 per cent, the rate
dropped to 6 per cent in the afternoon.
The Treasury completed its heavy
withdrawals Is last week so that tenn
center is likely to be more liberal.
However. no important casing Of rates