Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-11
ANOTHER SINKING
SPELL IN MARKET
Combination of Unfavorable In
dustriaI Developments Re-
sponsible for Weeks Slump

New York. June 11.-The stock mar
ket suffered another alarming sinking
| spell this morning as result or en-
forced selling because Of unwillingness
or inability to meet the marginal calls
sent out last night. The initial de-
clines at the same time quickly ran into
big strata of stop loss orders. AS
result of the heavy pressure. prices
crumblcd with unsettling rapidity all
along the line, with the weakest spots
found in the sugar. oil and steel stocks.
The downward swing, however, reached
stocks Of practically every description,
with many making new low prices for
the year. The downward swing spent
it's force before the end of the first hour.
During the remainder of short period
desultory covering of shorts brought
| irregular recoveries, but aside from
these operations the buying power re-
| mained feeble. There was also con-
siderable weakness in the grain and
cotton markets, while foreign exchange
was very unsteady.
It was another week of discourage
mcnt for both the investor and the
spcculator. As q result of the combi-
nation of unfavorable developments
| largely pertaining TO the industrial
situation. there was a further alarming
crumbling of security values. This ad-
| ditional depreciation was made the more
| dsconcerting because of the already
disturbing shrinkage of market values
during the last twenty months. Prior
to the short lived spring rise the belief
was entertained by some of the very
shrewdest market analysts the market
was not only thoroughly liQuidated but
also that the unfavorable side of the
industrial situation known and likely
to happen was fully discounted. I'm
doubtcdly they were sincere in their
deductions and at the time were essen
TALLY correct in their verdict.
Like all tissue destroying diseases.
unforeseen complications Unexpectedly
developed. which completely upset thier
demonstrations. In brief, the industrial
companies have not been able to liqui-
date their inventories against which
their additional financing last fall and
again this spring was founded. As
result the majority of these concerns
find themselves little better off thaa
they we're before. They find they have
no profits to pay dividends while bank
ers are clamoring for the repayment OF
promises loans. This logically has led
to n great unsettlement of mind and
has been prolific of whole lot OF lr-
responsible talk of sore spots to De
eliminated. 1t also has resulted in n
virtual deluge of dividend omissions aud
dividend reductions. 4 further under
mining influence developed in the semi
collapse of the foreign exchange markets
and in the first part Of the week in the
pronounced tightening of the money
market.
Under these circumstances possibly
II was not surprising lower level OF
prices should have been established
!. when it is considered the average prices
Of .he active industrial issues and the
railroads as we'll are within only few
points of the exceptionally depressed
levels Of last December and Aprils re-
sneCtiyely. there seems to be every pos
stbility Of the downward swing bein!
oyerdone. Because Of the recurren
: enforced liquidation, the bear part
have encountered practically little op
position in their raidng tactics. En-
boldened by their success, some OF IN
attacks were little short of reckless
While they may be able to pound tn
" market with still greater fury, unles
many well known signs are misleading
and false, the market as a whole Is fas
approaching an oversold condition. II
other words, the bear ranks is rapid
becoming ovprCrowded and eXpcrienc
has shown when the following on eithe
. side of the market becomes con
.. spicuously popular it is always wise t
do little sidestepping.