New-York tribune., 1920-09-25
Decline inStocks
Is More Orderly:
Partially Checked
Liquidation Continues ON Di.
nninished Scale; Strength
Of Bo'ad Market Stands
Out i'm Bold Contrast

The first impact on the stock mar
Het OF the important reductions in COM
modify prices was absorbed by recess
sions in the quotations on industrial
securities earlier in the week. Conse
4uently fluctuations were more orderlv
yesterday. despite the momentum eoth.
cred by fresh developments and bv the
focusslng Of public attention on the
trend In industry.
me nquidation continued. but to a
substantially diminished extent. rhe
weakness was for She most part To-
canned, and stocks that were especially
vulnerable suffered. The indiscrimi
nate selling OF industrial! stocks was
at least temporarily halted. The mo,
.or ana accessory stocks, the coppets
and at times. the securities Of food
companies were the detectives Of hear.
ish attack, and they yielded most in a
market that was by far the most quiet
OF the week. The unusually long list
of stocks dealt in, however, indicated
that scattered holders of long stocks
mad been frightened by the latest Sc
r'es of price reductions and were rush
ing to get out of the market.
Against the irregular, uncertain,
largely professional speculative mar
ket IN stocks the investment market
stood in sharp contrast. The active
pu!ing OF bonds, varying from the gilt
edged to the most speculative, which
has been impressive all week, yester-
day carried the upward movement still
further. The Various Liberty bond is
sues were bought with especial avicity
and gained point each on the aver
age for the day and two points for the
week. The upward movement is at
tributed partly to q arealizaton that
the current high money ratesand CON
sequentiy the present low quotations
on nlgh-grade lnvestments--are not
permanent, and partly also to a desire
on the part OF large groups Of per
sons whose speculations have proved
disappointing to lay stress on the safe
ty Of their principal. Many of the
out banks have reported that
their purchases of Liberty bonds have
exceeded their sales for some time
Investment bankers have long contend
ed that recession iaeindustry would be
helpful to outstanding bonds by re-
leasing the demand for money, so the
improvement in the bond market, de-
spite the news coming out Of indus
try, is not anomalous.
The virus Of price cutting profound
ly affected spectators in commod ties.
The real financial thrill Of the day
originated in the wheat markets, where
prices declined from 11A to ~ cents
bushel, despite the placing of un-
usually large foreign orders. Without
the support from abroad observers
wondered how far the smash would
have carried quotations. AS a direct
result of the break in wheat corn
prices again slulnped, losing another
two cents to the bushel. Similar in
tiuences dominating cotton traders and
prices for the staple of the South
slumped from G5 to 20 points.
Bankers who try to take long view
Of the situation, instead of merely the
effect Of important events on quota
tions five minutes later, were inclined
yesterday TO describe the convergence
Of price readjustments as healthful.
They characterized prices that have
prevailed as artificial and welcome. a
return to q more economically sodnd
basis, even though the adjustment is
certain to be more or less painfu!.