The Sun and the New York herald., 1920-05-13

FEW RESISTING ISSUES

The stock market opened heavy yes
terday and continued to sag In a very
uneven fashion again throughout the
day. There were few spots, such as
Baldwin and the Mexican oils. which
offered fairly good resistance to the de-
cline, but the general run Of stocks
closed lower on the day. As on the pre-
ceding day, the principal weakness CEN
tired In the motor, accessory and so
called high inventory stocks, which Wall
Street believes made their high prices
for the year following the sharp crash In
the market In February. These issues were
sold yesterday without regard to value,
mostly by the professional contingent
but here and there was evidence that the
bear propaganda, which Is being clrcu-
lated In connection with the motor stocks
/ in particular, Is beginning to force out
! good deal OF real long stock. 1t was
interesting to note that the motor group
was about the only one which suffered
severe declines, but that was about the
only favorable thing that could be said
about the market.
The poor character OF the selling
seemed to be further emphasized by the
fact that the trading was extremely
light on the down side. but whether or
not the selling was as poor as some
interests said It was the fact was that
the continued hammering was very dis
concerting. It discouraged new buying
which would ordinarily have come into
the market at the low prices, and at the
same time undoubtedly forced out good
deal OF scattered selling on the part Of
commission house followers who have
grGwn tired Of holding stocks any longer.
The people who believe that stocks will
do better during the summer months
still pointed to the way in which they
were being absorbed on a scale down
and to the additional fact that the mar
ket was still in trading area, and
! therefore could do almost anything; but
there was very little real encouragement
In this for holders of long stocks, who
have seen the market go lower almost
daily for the last month. The truth OF the
matter Is that real optimlsts are becoming
scarcer every day in Wall Street, while
the bearish contingent Is growing to un-
usually large proportions.
The Mexican oil stocks again offered
the best resistance in the whole list, but
1t was quite apparent, so far as these
issues were concerned. that the pools and
cliques were holding them up regard
less OF what the rest of the market did
The strength Of these issues naturally
helped the other oil stocks, including
Texas Company and other low priced
issues. The selling of the motor stocks
was due again principally to the belief
that the automobile industry had passed
the peak OF the boom and to the addi-
1A t-N.. l..
financial circles about the discrimina-
ton by various Federal Reserve banks
against loans to automobile concerns
There was a very sharp break in Stude-
baker. and Chandler Motors was very
weak for the first time. American
Woolen and other so-called high in
ventory stocks were subjected TO nn-
other attack by the bear contingent at
the outset and got close to the low
prices Of several days ago, The contin-
ued hammering Of Steel common was
also very disconcerning.
There was no change for the better
in the money situation. After opening
at per cent. call money got up as high
as 10 per cent. in the last hour. Bankers
said that while there may be easier
money next week. nothing Is in sight
yet to warrant the prediction OF much
easier money for some time to come un-
less. OF course, gold imports are re-
sumed. Investigation of the possibility
Of gold imports revealed the fact that no
| gold has started for this country as yet
Bankers generally believe that further
gold will be shipped here before the end
Of the summer. but they refused to make
any prediction as to when the next
movement is likely TO come. As a mat
| ter OF fact there is serious talk now as
to whether or not some gold will not
have to be shipped to Japan before the
end Of the summer. There was no spe-
cial change in the foreign exchange sit
uation. Sterling did slightly better at
the outset, but the improvement was not
at all significant.