Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-03
MARKET LACKED
SUSTAINING POWER
Liberal Supply Was Met on All
Rallies, Giving Bears
the Advantage

New York, Aug. 3.--Extreme ir-
regularity marked the movement of to-
days stock market. Waves of strength
and heaviness followed each other in
quick succession, so that the general
list was virtually without any settled
trend for any length of time. Beneath
this ragged surface appearance there
seemed to be an underlying reactionsry
current. In all events, the least re-
sistance was apparently encountered on
the downward swings.
Yesterdays losses were partly re-
trieved in Il number of instances at the
| opening, but the display of strength was
of short duration, lasting only as long
as the overextended short interest seen
fit to cover. In truth, the entire list
| weakened again when 1t was found
prices could not be advanced very far
from last nights closing level without
getting a liberal supply Of stocks.
Many reasons existed to presume that
the greater amount of pressure eman-
ated from the bear camp, as these
gentlemen were quite ready to follow
up the successful tactics of the pre-
ceding sessions in making an active
hunt for weak spots. Yet, on the other
hand there were just as many equally
convincing reasons existing to feel
much of the selling represented real
| liquidation, which while not having
characteristics of the enforced type
witnessed in some Of the recent back
sets, yet was positively of a persistent
| character,
The we'll executed bear drives were
to some extent facilitated by the rather
disturbing surrounding conditions and
adverse news developments. A break
of 4 points in sterling, due to the
threatening Polish situation, together
with rumors of new financing and poor
earnings of the various industrial cor
porations, together with the unsatisfac-
tory credit situation, only naturally
tempted additional extension of short
lines in all quarters of the list.
On the other hand, at the lower levels
the market showed plain evidence of be-
ing oversold, and when support appear
ed for certain stocks prices rallied
briskly. Still, the general buying was
rather cautious because of the sensi-
tiveness of some of the speculative in
dustrials and the growing appreciation
of unimportant progress made in cor
recting the strained bank credit situa-
ton. As result the rallies quickly
faded away as the market conspicuous
ly lacked sustaining power.
The drive following the opening
seemed to have been somewhat over
done, for prices came back sharply by
the end of the first half hour, with the
leaders up l to 4 points, with market
strength in certain steels. equipments,
oils, motors and railroads; in truth,
comprising largely those stocks recently
under active pool manipulation. U. S.
Steel, after duplicating yesterdays low
at S5A, rebounded to near ST.
About the time the recovery seemed
to have gained real headway the whole
market was upset again by active selling
of Bethlehem Steel, Baldwin Locomo-
tive, Corn Products and others, which
fell 2h to 3 points in comparatively
brief time. Denials by President Grace.
of the Bethlehem Steel Corporation that
any new financing was contemplated
checked the reaction, but the rest of
the list continued subjected to spasmodc
selling.
In the meantime the renewal rate for
call money was fixed the same as yes
terday at s per cent, and the demand
for funds was said to be light, a natural
outcome in view of the lQuidating char
acter of the market.