Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-09
PRICE MOVEMENT
WIDE AND ERRAT|C
Weeks Violent Fluctuations
Largely the Outcome Of
Speculative Influences

New York, July 9.--The highly pro-
fessional coloring Of the trading in to-
days abbreviated session Of the stock
market robbed the rather wide fluctua-
lions Of any significance. Considering
the moderate volume of business the
variations were uncommonly feverish.
These, however, were solely the result
of the evening up operations of the room
trading contingent and other profess
sionaf traders. At the outset the mar
ket ran into another wave of liberal
realizing sales. which coupled with
some belated liquidation caused sub
stantial recessions all along the line.
This was Offset in the second hour by
equal free covering of shorts. 30 that
not only were the earlier losses quickly
retrieved. but the more active stocks
were carried from one to two points
above last nights closing level. On
the recovery intense dullness developed,
disclosing the same restricted buying
power when the requirements of the
shorts are filed.
There was little in the overnight de.
velopments to affect the market much
either way. In the morning news the
outstanding development was a sharp
decline in exchange rates. Demand bills
on London we're quoted close to the low
est figure Of the year Apparently the
incident was not a market factor.
Those seeking quick action could not
possibly find the slightest complaint
against the weeks market The wide
and rather violent gyrations should have
appeased the appetite of the most fas-
tidious trader. After all, did the me-
curial character of the weeks move
ment mean anything? 1t was primar-
lily a thing unto itself. Analysed closely
it will be found the rapid changes were
inspired almost solely by technical con-
ditions rather than rejecting the fuc-
tuating events in the world outside.
This was not because Of the lack of
important developments or events, as the
week was replete with happenings all Of
which had direct bearing upon the sit
uation marketwise. For the moment
| these are overcome by speculative in
fluences, but in the long run are rea-
| sonably certain to figure prominently
in shaping the course of the security
markets. Just when that period will be
| reached is problematical, as there are
no means of measuring the readjust-
| ment still in progress.
The more disappointing side of the
| weeks operations was unquestionably
found in the disclosure of signs of fur
ther weakness in the speculative struc-
| ture Of the industrial division. The
continuing crumbling Of values in this
quarter of the market was additionally
discouraging because 1t had been widely
believed the industrial situation, Ill
though admittedly bad and offering lit
! tie promise of immediate improvement,
had already been discounted by the tre-
mendous depreciation in market quo
! tatiop.
1t was made plain, however, despite
the drastic character OF the cleaning up
process much still remains to be done
before Wall Street can put its house
in order. Attention has repeatedly been
called to the pronounced contraction OF
brokers' loans and pointed out as a re-
| liable indication Of the thoroughness OF
the liquidation of speculative accounts.
No one will deny that, but, on the other
hand, each succeeding semi collapse OF
the market supplies undeniable testi-
mony Of the fact that much bigger fish
than the ordinary Wall Street specu
lator has been forced to unload. lr
addition, the sharp rebound witnessed In
the middle Of the week demonstrated
quite conclusively that there are reamt
of stocks which institutions were forced
to take over in the "helping out in the
previuos breaks being dumped OF
every substantial rally.
The market, however, Is not without
a favorable side. It is readily recog
nized unless the powers to be did not
have the situation we'll in hand, the
recurrent sinking spells with the fast
melting prices would surely run int
complete Generalization. The auto
matte pauses in either swing is alon'
sufficient proof of the market havin,
successfully passed the real crisis an'
: the necessity of a major operation. Th'
thing most desired on all sides is
period of inactivity. Prolonged dull
ness might be irritating to professions
traders, but rest period would not onl'
do a heap of good but also possibly