Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-06
week CLOSED WITH
lDR00P|NG MARKET.
current Disturbing Elements
Are Generally Regarded as
Temporary Influences

y New York, Aug. 6.--roday's closing
stock market was typical midsummer
half-holiday affair. There was brief
sinking spell at the opening produced by
virtually the same influences responsible
for yesterdays unsettlement. Declines
from substantial fractions to nearly 2
points were registered through the list
during the first half hour OF the trading.
Once more the declines we're not fol-
lowed up by selling orders. On tn"
contrary, extreme dullness developed
and later profit taking by shorts brought
irregular recoveries. The character OF
the trading suggested continuance of the
same fear Of some disturbing develop
ment overhanging the situation. Ihis
Z possibly was to some extent intcnslted
by the announcement of the cancellation
OF reservations by a prominent financial
interest who was scheduled to sail this
morning on one of the trans Atlantic
liners.
Is it another false start2 This ques-
tion was on the lips of the rank and file
after the closing yesterday, when the
whole list, for some occult reason
turned tail and seemed to be slipping
back faster than 1t had previously
climbed under the revived bullish spec
ulation. Possibly the recent marking
up process overran the reported I'M
provement in things generally, but be-
cause some of the active leaders nave
started to retraCe part OF their upward
steps does not altogether imply there
has been another false start made. Hes
itating. hating and conflicting periods
always have and always will pune:
tuate the inception of the reversal of
the market swing. Things go along some
times for a considerable distance IN the
same sort of groove that it is frequently
difficult to change the order of things,
especially when the majority have their
minds set on the one predomtnatlng
thought and have their eyes trained In
the one direction. That is TO say, the
greater percentage Of the professional,
semi professional and public trading
contingent have become so fOndly aCCus-
toned to bear markets they can sec
nothing else. Just the same as when
the woods are full OF crazy, shouting,
senseless and reckless bulls. No bull
movement ever carried prices quite up
to the sky and there will never be n
bear movement that will carry the level
of security values to q bOttomlcss pit |
In making a casual analysis of the !
list il will be found that most of the |
representative shares (as specialties oc- |
cupy an entirely different footing) have |
enjoyed q consistent as we'll as a mate
rial rise within the last two months. |
The average prices Of these shares run |
from to 90 points above the low levels |
OF the year. No one ever goes broke in |
the stock market possessing the wisdom |
of cashing in moderate prices. The
people who were responsible for and |
who made the recovery possible enjoy |
that peculiar kind of wisdom. They |
are not philanthropists, but just or
dinary red -blooded human beings and |
quite ready to receive the wage Of their
earnings. 1t was this profit taking !
which checked the rising tide of values
and reversed the food to an ebb.
As to the underlying conditions : |
Every fairminded reasoning person will |
admit things all round are not half so
bad as they were year ago. There
has been a whole lot of forced liquida-
ton recently and there Is likely to be a
great deal more of it. When it is stated |
liquidation is completed, it means the |
more urgent, the more menRCing. the |
more, disturbing sore spots are cleaned |
up. There is a whole lot of little sores
still to be healed. There are whole lot
OF foolish, over extended individuals !
WHO stlll nave 10 come TO tne captain |
desk to pay up for their mistakes, and |
there is whole lot of scattered wreck |
age remaining to be cleared up before |
the band wagon announcing the ap-
proach of the real big show can be |
safely put on the road.
The corner has been turned. The
change is almost imperceptible, and
may be difficult to discern for some
weeks yet to come. Nevertheless, our
backs are turned again to the worst
side. Those in position, individually
and institutions, have begun to pave
the way for restoring the extremely
heavy losses they We're compelled to
mark down and they are going to ac-
complish this by averaging their hold /.
ings In buying equal amounts of securi-
ties now held at prices from 20 to so |
per cent under the original purchase
price. If the powerful and money in
tsrests are convinced the time is ripe
TO start these recuperation plans, 1t is |
certainly not the time to foster pessi-
mism or join the overcrowded bear
ranks.