New-York tribune., 1921-06-21
Prices Break
To New Low i'm
Heavy Selling
Weakness Presents Appear
ance Of Reverse Bull Mar
ket as Professionals Sell
in Quest of Lower Levels

| Yesterdays extreme weakness in Sc
of an inverted bull market. The spec
tacle of falling quotations drove i'm
patient share holders to dump their
holdings into the marketplace. Spec
ulators, though operating in the re-
verse direction, revealed much the
same attitude as is shown during a
! boom period, when folk buy stocks
merely because prices are rising.
The smashing declines yesterday,
which were again facilitated by slam
ming tactics on tho part Of fearless
| professional spectators in quest Of
lower quotations, were in large meas
steadily receding quotations. Each
fresh break brought prices to new low
stratum and weakened the position Of
holders of securities. Margins in
many instances were wiped out, neces-
stating unusually large numbers of
calls for additional funds. Every new
recession uncovered multtudes Of
stop orders, and, with no vigorous buy
ing movement to offset the factors
making for lower prices, the move
ment fast gained momentum, impair
ing not only margins but the CON-
tidence of holders of stock-a more
serious impairment.
In many instances the market values
of industrial and railroad stocks we're
the lowest thus far in 1921. More
over, some securities, notably United
States Steel, sold lower than ct any
time since the war boom began, in
1915. The average of thirty industrial
stocks yesterday at the close was
63,53, compared with low for 1920 of
67.67. The average price of twenty
typical rails dropped to 57.4o, the low
est quoted thus far this year.
AS on Saturday, the rails, which
heretofore had been steady during the
wave of liquidation of industri,.ls.
yielded to the dominant tides of SELL
ing and became conspicuously weak,
with Canadian Pacific, again vulner-
able, tumbling to the lowest market
quotation in score of years.
The mere action of the market, per-
sistently downward for more than a
month and half, has tended toward
making sentiment cheerless, and those
who use fluctuating prices as crystal
Dali with which to see the business
future have been wondering whe; .er
any untoward events are imminent or
hidden beneath the surface of present
happenings. In banking quarters en-
phasis was laid on the improving credit
situation, and no fundamental reasons
were ascribed to the present market
collapse, which has been in part due,
no doubt, to necessitous selling.
In the money market call funds
were renewed at 51a per cent, and
later in the day the rate at the Stock
Exchange for the second time this
year was quoted at per cent. In the
foreign exchange market sterling and
the Continental exchanges decline ed, los
ing most of last weeks gains. Sterling
cables at the close were worth S3.771a
"a cents less than on Saturday.
The weakness in exchange was nartlv
due to the decision of the British
miners to remain on strike, and this
was reflected, too, in weakness in the
Cotton Exchange, where new low
records for the season were registered.
Losses exceeded so points, as further
weather reports indicated excellent
crop prospects.
In the wheat pit traders were sem
sltive to the declines in other markets.
ana prices closed to 4 cents lever.
Corn quotations were easy also.