Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-20
more new LOWS IN
THE |NDUSTR|ALS
Weeks Developments Sug-
gested lncompletion Of Liqui-
dation Of Industrial Group

New York. Aug. 2O.--Thcre was
continued dribblng liquidation in the
Industrial division in today's stock
market, causing the establishment Of
further new low levels for the year.
The trading was Of very limited vol
ume, and with the exception Of the
railroad issues. the days abbreviated
session was generally one Of slow re-
action. The announcement Of tho Nddi-
tional wage cuts by the United States
Steel Corporation was without the
slightest effect. Chandler Motors. Cru.
chile Steel. Republic Iron and Steel
Studebaker and Pierce Arrow were the
weak features. The entire list, how
ever, showed a conspicuous lack Of sta
bility and had no rallying power what
ever.
About the only additional light thrown
upon the general situation by the
weeks operations was the conclusive
testimony of the incompeted liQuida-
tion. This applied almost exclusively
to the industrial division, and more
particularly to the stocks of the manu-
featuring companies. 1t has become a
common practice to charge the weaken
ed condition of the most part of the
list to depressing tactics of the So
called bear party. Attention repeated
ly has been called to the growth of the
short interest and the apparent over
sold condition of the market, using as
a proof of this assertion the premiums
exacted in loan crowd for stock borrow
ing. This misleading phenomena for a
time fooled a good many, but it has
proved to q large extent to have been
simply camoufage TO cover up liqui-
dation of certain parties who did not
wish their operations to become public
property.
This does not mean to imply there
has been no short selling during the last
three weeks of declining prices. as there
ts always o certain degree Of selling for
the bear account when the market bar
ometer is falling 1t does mean, how
ever, the larger part of the selling
movement represented real liquidation.
Furthermore, there are many reasons
for supposing quite a good portion Of
it was enforced in order to strengthen
impaired resources on the one hand.
and in other quarters to build up fences
of less marketable securities. While
a good many do not know 1t, there has
been a wholesale house cleaning of loan
collateral envelopes recently. Then
there has been another element. In or
der to meet urgent requirements needed
OF them to prop up weakened structures
many were compelled to let go quite
big line of what formerly were classi-
fled as seasonable securities.
To a great many it was another week
Of increasing disappointments. At the
close of the preceding week a general
supposition prevailed with the clearing
up of the New York bank disturbance
the market was in a fair position TO
enjoy a material recovery. There was
some sort of rally, but it was found
as the week progressed stocks, espe-
cially among the industrinls, were freely
supplied on all advances. In other
words, the character Of the market in
dicated beyond dispute there was still
quite lot Of stock to be sold and that it
was being fed out Systematically until
signs of saturation were apparent. At
such intervals pressure automatically
relaxed only to recur with every moder-
ate rally.
Impression prevails in some quarters
that a goodly part of this systematic
liquidation, at times quite urgent, or
made to appear 80 because of the thin
ness of the market, largely represents
dumping overheard of the holdings of
Q good many who were responsible for
the speculative orgy several years ago.
Little doubt exists that number
of pools and other speculative combi-
nations oVefStayed their market, or
else never had the real opportunity Of
carrying out the skylin program. 1t
Is difficult. If not impossible, TO meas.
ure the duration or extent of such
liquidation.
Little, II any change, occurred in the
general situation. Further unpleas-
ant dividend omissions and reductions
exemplitied the difficulties encountered
by most all corporations to make ends
meet. In general business, some
brighter spots have appeared here and
there. In the basic industries little
real improvement is to be found. The
promised easement of money conditions
has not materialized and hopes of early
legislation, both as to the relief of the
railroads and the tax revision, have
been chilled TO some extent by the pro-
crastinating policy of the Washington
lawmakers.