Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-15
Market Sltuation Clouded

Market Situation Ciouded
The stock market situation was the
subject Of a good deal of conjecture
after the closing on Saturday In view ci
the crumbling away Of values last week.
which unquestionably seriously i'm.
paired many speculative accounts and
forced meterial liquidation. Most Of the
confident belief that the worst OF
liquidsting movement had been seen
and from technical standpoint alone, a
substantial rally was In order.
Opinions Of some of the leading
brokers follow:
Chandler Bros. q Co.-The market
was In a semipanicky condition most OF
the week for reasons no more apparent
than have been In possession for sew
scarcity Of money, discrimination In
loans and high rates demanded. but
there Is nothing new about that, nor
has there been anything new about II
since the millennium Of easy money and
orthodox rates for money were prom
ised as the birthright of the Federal Re-
serve banking system, which has fat
tened to almost the extent Of bursting
its buttons as the result Of just op-
posite conditions. Borrowers Of money
are growing thinner and more anemic
uS tHty 1lhu bhVbth dlbSt thohNh sh~
average rates Of money ranging between
8 and 10 per cent, while lenders are
growing more and more uncomfortably
corpulent, carrying around the en-
larging profits Of their thriftiness. II
Is not strange, therefore, that the ma.
jority OF security holders, who owe
balances on their commitments, blame
present extreme weakness upon these
conditions.
West & Cove are in the midst
Of severe business readjustment. Most
Of this has already been forecasted by
bankers and discounted by the stock
market. But just az the extent Of the
imitation of the last few years was diff
fcult to gauge, just 80 Is the extent OF
the present deaation difficult to meas
ure.
At the moment. goods are slow in
selling even at great reductions, foreign
exchanges are weak, indicating also an
inability Of European nations to buy q.
present lower prices; manufacturers.
merchants and spectators are faced
with losses, and many who have made
large profits early In the year are not
adverse to marking down prices with
the double result of clearing shelves and
avoiding taxes.
II. F. Bschman Co.-During the
last week prices for both spots and
futures have continued to decline and
at the close Of the week spot cotton
showed a larger net decline than futures.
There has been no improvement in trade
conditions. which. II anything. are
more unsatisfactory than ever with in :
dustries further curtailing and the list
| or unemployed steadily growing both
In this country and Europe. Sterling
exchange, along with all other foreign
exchange. has suffered further sharp
decline. The stock market and all
ersins have declined steadily. The spot
hasis both In the eastern and western
belts has broken sharnlv and cotton Is
being Ooered freely in the interior at the
lowest basis ~ the season.
Hughes & Dier - In our judgment,
the wave of pessimism now sweeping
over the country is unwarranted. and
short selling in the market as result
Of such pessimistic feeling is overdoins
itself. Our people are given to sudden
reversal Of mental attitude and resili-
ency of mind is likely to soon take the
place Of present depression. condition
to be quickly followed without an,
doubt by a sudden change in marke
reeling and rebound in price Of securi
ties Of suddeness to cause the presen
short interest a great deal Of discom
fort. It has always been a market rul
! that securities should be bought whel
everything looks the darkest and thi
seems to us like time when one view
ing the future as optimistically rs |
should be viewed and having the cour
age Of his convictions. can come into
the market with every prospect Of mos
substantial results for commitment
made at present price levels.
Hocker & C0.-"The recent markets
reflect the effects Of the unfavorable
underlying forces at work. The price
Of some classes Of securities may go still
lower before discounting the adverse
conditions directly pertaining to them
The nearer bottoms are reached, the
more frequent will be the rallies and as
there has not been rally Of any con
sequence for some days it would seem,
Judging by nearly every precedent. We
are entitled to one most any time
Whether the rallies will hold will
depend somewhat upon how thoroughly
the market is liquidated and what money
rates are" THE TRADER