New-York tribune., 1920-08-10
Stocks Drop Lower
I'm Fresh Selling
Wave Before Rally
Many Industrials Reach
New Lows for Year in
Downward Revision; For
eign Exchange Declines

Inc character or the news and ru
mors regarding the Russian Polish war
fuctuates with such rapidity that the
stock market, which has been highly
sensitive to the reports from the Old
World, affords unusual opportunities
for profits for tho professional in-and-
outer. In fact, the present situation is
SO uncertain and so unstable that the
trader close to the posts where stocks
somely at the expense of those holders
of long stock who have been bearing
the brunt of the drastic revision down
ward of security prices.
| In some quarters there is disposi-
tion to assert that the Polish develop
ments are not having a major influence
on the course of security fluctuations,
which are attributed mainly to the re-
cession in industry and to the de-
flation policy of the banks. Undoubt-
edly the domestic readjustment lies in
the background and constitutes a
fundamental market influence. But at
present it seems plain that the
dynamic factor is the news from Mid
die Europe, which professional opera
tors have been using as the justifca-
ton for their raids on stocks. which
have been aided at each fresh level of
decline by new liquidation.
Yesterday morning stock prices
seemed to be initiating the technique
of the waters of Niagara. The stream
lower levels. Opening prices were
about n point lower than Saturdays
close, and the break continued until
losses of points among the indus
trials were common, and until some
stocks lost to 8 points. In the hur-
ried decline rails, too, were affected,
and losses of l to points by midday
were frequent. On the basis Of re-
ports that the Bolsheviki were un-
ready to sign an armistice on the con-
ditions suggested, it seemed easy for
the coalition of short selling and fur
ther liquidation greatly to depress
prices.
Early in the afternoon the market
trend changed The shorts decided to-
take profit by covering their commit
ments. About this time a rumor
reached the floor from the lobby of the
House of Commons to the effect that
the Russians had signed a four-day
truce. Whether this piece of uncon-
hrmed information served as cause
or merely pretext for covering is a
Haller OF dispute, Dut at any rate it
came at the time the shorts decided
that the decline for the day had gone
far enough.
The unsettlemcnt in the forenoon
over the Polish imbroglio was height
ened by fresh smash in sterling ex-
change quotations, which opened at
5000. against closing of S3661A on
Saturday, A rally brought the dollar
value of pound up to S3.G25O later
in the day, figure substantially higher
than last weeks low. In the confusion
over the foreign news, wheat and cot
ton moved lower yesterday
The rapid decline of stocks in the
forenoon carried them too far for the
rally in the afternoon to efface the
losses registered. During the break
nineteen active stocks including U. S.
Steel, Z. S. Rubber, Baldwin Locomo-
tive and Marine preferred. slumpcd to
the lowest points attained this year.
The rebound later in the day wiped
out large proportion of the losses
but the general list closed with sizable
net declines for the day