Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-25
SHORTS SUFFERED
SEVERE GR|LL|NG
Weeks Heavy Liquidation In
dioated cIeaning-Up Process
Was Not Yet Completed

New York. June 25.--The over zeal
Gus short interest came in for severe
grilling in today's brief session of the
stock market. There was hasty. coy
ering of commitments all through the
list, the demand being little snort u
urgent in number Of the Industrial
speculative specinlties. which carried
prices up rapidly, resulting in net gains
from l to over ; points. While the re-
bound invited considerable profit taking
the recoveres were well sustained ana
the final quotations were generally close
to the top figures of the day.
Vague hints of the possibility of some
very favorable developments turning up
over the week end was partly rcsponsi-
BILE for the haSty retreat OF the bear
following, but the greater propclling
force in the about face turn in the mar
kct trend was supplied in technical con-
ditiOns. In consequence, the wider
gains were registered in those specula-
tive issues which had suffered the brunt
of the weeks downward swing, but in
all parts of the ljst an oyersOld condi-
tion was disclosed.
The weeks market made 1t plain that
liquidation is still in progress to the
extent to leave decided impression on
the speculative and investment situn
tiOn. In n measure. it served to lift
the veil Of secrecy which had more or
less clouded the influences behind the
prolonged downward swing for some
weeks back. 1t disclosed the utter TOM
foolery of attempting to divert attcn-
tion from the real causes which were
steadily but surely undermining the
market position by intimation and open
Charge of reckless and merCilCsS drives
on the part of the organized bear party.
There Is no doubt that the uggres
sive operations of the reactioniSts con-
tributCd tO a large extent in forcing
market values in the perpendicular de-
scent. But short stocks were covered in
the easiest way imaginable because Of
ever increasing volume in the flood OF
liquidation Of real long stocks. There
was no decentralization, neither is there
any likelihood of such condition being
preCiDitated. The houseclcanngs have
been of too drastic a character and
prices have fallen to such an abnormal
low level as to preclude hystcria which
usually appears in paniCky times. The
nearest parallel TO the present move
ment is to be found in the so-Called
'silent panic" or rich mans panic,
r decade ago. 1t is admitted that some
big fishes in the speculative game have
been landed. 1t is admitted that indi-
vidual and collective interests who only
n few years ago were regarded as among
the most powerful operators on the
Street were forced to let go. There has
been very little of the familiar helping
out" because few are in position by
reason Of already strained resources to
help any one, and it has become case
OF every man for himself. This resulted
in the wholesale dumping of every mar
ketable holding in order TO obtain nee
essary funds to take up other holdings
less marketable and not possessing tam
giblc assets. so not only was the mar
ket forced TO contend with this mighty
volume of forced liquidation, but also
deprived of support usually depended
upon from those who were now found
in tight corner. Added to this was
the average business man. who in peri
DDS of market depression has always
been n big factor in contributing sup
port in stCmming the rapid ebb tide OF
values in the past. Today, because
of the widespread depression and the
money market tension with its contrac
ton Of credits. hc is SO pinchCd as to
resources that he is not leaning to stock
market commitments.
. As to the immediate course of the
market. much will depend as to whether
the liquidation has now been completed.
Many thought it was six months ago;
quite sure it was in the early spring,
only to discover within the last two
weeks that the cleaning up process was
only half done The real commend
able feature of the existing situation,
unpleasant as it may be, is the sur
prising willingness on the part of the
big interests to lay all cards on the
table with faces turned up. 1t is un-
quCstionably best to know the real state
of things. no matter how bad they may
be, rather than permitting indulgence
in general conjecture
Some seem to think the worst is over
That question cannot BE- satisfactorily
answered at this time. II the market
shall become dull all will be well it
will help in the gradual workout Of a
very difficult position.