New-York tribune., 1920-10-22
Slump i'm Stocks
F olIows s Adverse
News From Abroad
Markets Reflect the Nervous
Sentiment of Traders;
Steel Shares Display a
Resistance to Pressure

The financial markets in Wall Street
were adversely affected yesterday by
tic news from London that the rail
way men in England had served an
ultimatum upon the government an
rouncing their intention to walk out
at the end of the week unless steps
we're taken to settle the strike of the
coal miners. Prices of securities and
commodities slumped sharply in the
afternoon, while the foreign exchange
market reflected the general feeling
Of nervousness, and sterling rates broke
III striking manner, losing much of the
recovery of the preceding day. At the
Stock Exchange The turnover of busi-
ness was somewhat larger than in re-
cent sessions.
On Wednesday the Street had re-
ceivcd intimations that the strike of
the English coal miners not only would
probably not spread, but that forces
were at work which would likely result
in an early adjustment Of the difficulty.
This was largely the basis of the i'm
rIovement in Wednesdays market.
Yesterday stocks displayed fair tone
fol part of the session at the exchange
and the trading element continued dur
view of the situation abroad The news
of the ultimatum of the railway men
came as distinct surprise and quickly
turned the tide, SO that the afternoon
market was unsettled, with a pro-
nounced tendency toward lower price
levels. Losses in some Of the more
speculative issues from the early highs
amounted to 2 to 3 points, while net
declines at the close exceeded point
or more In the case of many leaders,
Steel shares displayed fair degree of
CT 70 ~
was buying of these shares on the ex-
oellent showing made the day before
ty the Republic Iron and Steel Com
pany for the September quarter Oil
stocks were among the weakest on the
afternoon selling movement, with spe-
clal pressure against the so-caled in
ternational issues. Railroad stocks con-
tinued to act we'll and certain of the
low--priced shares, notably the St. Louis
Southwestern issues, were special
features of strength.
In addition to the developments in
England the market had other adverse
influences to contend with. There were.
for instance, exceedingly 'bearish ru-
'mors in circulation regarding the
financial situation in South America.
Advices from Colombia spoke of the
possible declaration of a moratorium
IN that country, while houses connected
with Brazil and Argentina reported an
almost complete paralysis of business
between those countries and the United
States so far as the importation Of
American goods is concerned. The ex
planatlon of this situation with regard
to Brazil and Argentina is to be found
IN the extremely abnormal exchange
situation. At the moment the Ameri-
can dollar is at a premium of 25 per
cent in Brazil and 23 per cent in Ar
gentlna, which makes it almost pro-
hlbltive for the merchants in those
countries to buy goods here
Sterling exchange declined more than
2 cents yesterday in connection with
the English strike Developments. In
the cotton market the recovery begun
on Monday encountered a check and
prices turned sharply downward. In
the grain market wheat broke under So
bushel while corn established a new
low record level for the season.
AT the stock exchange money market
all call loans during the regular ex-
change session were made on a basis
OF Z per cent. After the close 81 ,OOO,-
600 was loaned on call at per cent.
The investment market continues to
display good tone and new issues
are being we'll taken. A new foreign
commitment in this market was an
nounced yesterday in the Kingdom of
Denmark $25,000,0O0 twenty -fve-year
8 per cent loan. the bonds of which
are being offered by the bankers to-
day on basis of par and interest.