Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-27
market WEAKENED
AT TER EARLY RALLY
Motive for the Weeks Neces-
sitous Liquidating Movement
Remains Undisclosed

New York. Aug. 2T.--After cstab-
Nshing further advances at the opening
at the continued expense of the short
interest today's stock market not only
developed considerable irregularity, but
there also cropped out in scattering
parts Of the list fresh weakness. The
instability Of the list reflected weaken.
ening Of technical position as result Of
the rounding up of the short interest
yesterday. 1t likewise disclosed the
impoverished buying power and the
consequent inability to follow up tho
recoveries
The rebound of the two preceding
sessions invited liberal realization Of
profits. while at the same time quite a
number of specialtips' rPcurrent sinking
spells indicated further ncCcsSitouS
liquidation. Quick cancellation of the
initial improvement followed, and in the
tobacco. sugar. rubber and textile is
sues breaks of IN to nearly 3 points
fairly active scale during the first hour.
but after that period thcrc was a
marked contraction in the dealings.
The weeks market gave every symp
tom of having the feel Of something
OF an unfavOrable nature impending in
corporation affairs There was not an
inkling of the character of the scented
disturbance and the very mystcrious-
ness Of the overhanGing trouble, If
there really was any, naturally wns
productive of n sense Of uneasinpsS As
a matter Of fact, the opinion was OPEN
ly expressed even in the most Conserv-
ative circles that il there was really
anything unsetting impending 1t would
be better for all hands 20 let it be
known and gotten over WITH The
greatest surgeons say anticipation is
invariably the hardest part of an Oper.
alton. The idea Of trouble was perhaps
intensified to large extent by rPa-
son of the continued So-caIlcd dis
tressed' or "neCeSstOus' selling 1t
used to be called forced liQuidation
That is to say. the selling out of spec
ulntive accounts which had been i'm
paired by inability or ~cfusal to meet
additional marginal calls.
There are many reasons however.
Tor supposing this "nccesstous" was
not alone confined 70 the unfortunate
position of over extended speculative nc-
counts; on the contrary. ample tpSti-
mony was given in the character Of tn"
dealings to suggest quite a good dpal
of it came from different reasons One
was the thawng out of the frequently
used application of frozen credits" in
Guiding the loans OF a number Of bob
tailed pools and other speculative com
binations who took prominent part in
the market orgies Of several years ago
Another was the selling for tax pur.
poses. That is for people who wcrc
unable otherwise to acquire sufficient
funds to meet the third installmcnt of
the income tax payment next month
Then there was evidence indicating so
called financial geniuses had found their
mountains of fancird wealth nothing
but papier mache and appointed trus-
tees were finding it compulsory to dis
pose OF real marketable goods to plug
up the holes of less negotiable stuff.
BY reason of its anemic condition
the market continues highly sensitive to
all pressure and disappontmPnts the
greatest in the latter sense being the
failure to carry through the post cleo
tion promises of quick remedial lcgis-
lation to bolster up the languishing
business conditions of the country. The
procrastinating attitude of Congress
unqucstionably upset carefully prepared
constructive plans. which now. Of
course, must be deferred until fresh
measurements are made of the legis-
lative possibilities
Despite the troubled surface waters
many elements of encouragement are to
be derived upon closer examination and
analysis of fundamental and basic con
ditions. While almost imperccptible.
there is consistent improvement being
made in all directions. Whether sep
arately or collectively, they all combine
TO steadily strengthen not only the in
herent position Of the security markets.
but can be unhesitatingly accepted as
a precursor of approaching normalcy in
Industrial and commercial conditions
and financial conditions as well. 1t re.
mains to be seen when these potent in
fluences will have reached sufficient mo-
mentum to overcome the irritating and
temporary surface events.