New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-27


4 The spasm of selling, which came
after six weeks of declining prices,
represented more than bold thrusts
by professional spectators for the de-
cline. There was liquidation, too, out
of necessity, Impotence and disturbed
confidence.
Spectators have been unable re-
Gently to divorce themselves from the
present. The future normally is the
stuff out of which speculation is made.
But with contemporary events sur
charged with pessimism, incidents such
as the passing of dividends, the clos
ing Of plants and other concomitants
Of depression are forcing themselves
into the forefront of the consciousness
Of those who buy and sell securities.
This, despite the fact that much that
is unfavorable in present happenings
was foreseen and should have been dis
counted.
4 In the weakness Of steeis, for ex-
ample, is reflected an unprecedented
depression in the industry behind the
stocks. AS John A. Topping, chairman
of the Republic Iron and Steel Com
pany, pointed out in an interview in
The Tribune yesterday, "Never before
in the history of the iron and steel
trade has production fallen 80 low or
remained so long at the minimum. In
our previous depressions our low mark
has ranged around the SO Per cent
mark" Mr.. Topping estimated that
present operations were about % per
cent Of capacity. The industry seems
to be at the summit Of its troubles
and the next fiuctuation ought to be
upward.
The precipitate character Of the sell
ing, followed by days of uncertainty
last week, with marked strength on Sat-
urday, led commission houses quarters
to mental speculation as to whether
these symptoms did not indicate the ap-
proach of the end of the downward
sweep of prices which began in Novem-
Der, 1919. A large segment of specula-
tive opinion believed that the December
break marked the ebb, but last weeks
lowest quotations were far below the
most depressed of 1920. Opinion regard
the quickness of business recovery is
more divided now than at the opening
of the year, yet, although prognostica-
tions regarding the touching of the bot
tom are fraught with danger, it is OBJ
vious that the market is now technically
in superb position to respond to any
fundamental favorable developments.
A correspondent has made the follow
ing diagnosis Of the declining stock
market:
I read Mr. Gibson's ideas in the
financial column, Boston Post, where
he denounced the chronic bear attacks
on stocks. / think there may be some
politics in the continual bearing of
stocks; many of the bears may be anti
capitalists and are keeping the market
down to stop the natural rise of
stocks. The bears could make money
on the bull side as we'll as the bear, if
| they wished to turn bull, SO it must
be there are lot Of anti-capitalists
on the bear side to keep prices of
stocks down. If it is SO the class of
men who want stocks to rise in price
| should get together and get the mar
ket away from the bears. There is
nothing in the news of the day why
| there should be q cronic bear market,
and it is time stocks had good move
upward and some action should be
taken to get the market up. There is
| no sense why stocks should be down
every day. Shows the big financial in
terests are not rallying the market.
| Stocks should have a good rise of
many points.
Add the foregoing to the crimes Of the
Bolshevists.
| Wall Street last week again enjoyed
the unusual experience of easy money.
A plethora Of funds existed to such
a degree that the banks, unable to lend
at the exchange at prevailing quota
tons there, made call loans in the out
| side market on per cent basis.
Meanwhile offerings of time funds were
more liberal and with borrowers dis
inclined to make long engagements
| o'oh az VIZ pei CeHt lux SlxCy-Qay
funds. The commercial credit mart
also reflected increasing ease and COM
mercial paper was discounted last
week on q 61a per cent basis, although
the general run of bills were placed
at higher rate. The more comfort
able position in the commercial credit
market follows the lowering of the
discount rate by the New York Reserve
Bank. Competent bankers look for a
J HARDENING, of mnnau ates &c thu month