Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-18
new Low RECORD
l FOR NEW HAVEN
Neal Motive Behind Weeks Ter
vific Slaughter of Values More
or Less a Mystery

New York. June 1S.-The week
closed with another discouraging market
today. While the selling did not reach
the large proportions Of the preceding
sessions and while the declines were not
20 violent, the tone Of the list was dis
tinctly heavy, the more disconcertlng
development being the fresh weakness
which cropped out in the railroad divi-
Hartford selling at 1875, the lowest
8 price ever touched by that stock.
Hurried covering Of shorts in the
Mexican oils, Cruciblc Steel and sew
eral other industrial specaltics which
had seen severe pressure during the
current week brought substantial
rallies from TO more than points. But
this was quickly counterbalanced by the
extensive offerings of Chesapeake and
Ohio, New Haven and other rails. Most
of the initial improvement was quickly
Cancelled and the greater portion of the
list fell under last nights closing level
to the extent of l TO 3 points. The
trading became dull on the declines,
but the market as a whole showed little
rallying power. The only demand to
speak of came from profit taking of the
shorts.
1t will be n very interesting story
when the inside history Of the weeks
terrific slaughter of industrial stock
values is written. Perhaps the real
motive will never be known and it will
go down in the annals Of Wall Street as
another mystery, just as did the silent
panic" rich mans panic" and other
memorable episodes. After six days OF
one hard drive after another the average
market observer was pretty fully con-
WINGED that something more than mere
bear raids was behind the alarming
melting of security values. Somebody,
or some interests, for reasons best
known to themselves were dumping
stock overheard about as fast as the
market could take them without pro-
ducing complete dcmoruIizatiou. When
IL is said that the average of fifty rep
resentative stocks sold at the lowest
level of the year. with quite few
touching the lowest prices in many
years and one or two the lowest in a
generation, some idea is given of the
Astounding shake down Of stock values.
This crumbling of the market occur
red in TIE face of a number Of con-
stIuctive developments. The good in
fiuences of these events, however, were
lost by reason of the further unpleasant
reminders of the unsatisfactory business
and industrial situation in additional
dividend omissions and reductions. But |
apparently there was still some deeper |
influence Mt work undermining the |
market structure. While the mystery |
was well guarded, yet there was present |
enough evidence to suggest belated |
liquidation for the account of the large !
speculative interests whose recklessness |
and bad judgment year or more ago |
prepared the way for Wall Streets |
subsequent experience. In fact, there |
are many reasons for believing that a |
number of speculative pools and |
combinations which fagrantly and almost
1nsultingly defed all Cautionary signals |
were given just treatment for their |
short sighted policy in hampcring the |
readjustment or reconstruction program |
or whatever else you may want to call
st.
This, of course. is poor solace to
those who had their nerves shattered by |
the spectacle of stocks tumbling day !
after day without any apparent |
reason. 1t must be remembered that |
bear market carries itself forward by |
its own momentum after weeks of per-
sistent declines and the bottom of the |
downward swing is equally as difficult to |
measure as the pinnacle of an eYtrava-
CANT upturn, when prices are run sky
ward until fundamental conditions or
credit and business cause Il halt such
as experienced in 1919. There is,
however, crumb of comfort to be
found in the further depreciation of Sc
curity values, and that is the common
sense appreciation, in the first place.
that prices cannot go the same way all
the time; in the second place, such vio-
lent upheavals mean eventual claritica-
tion and strengthening of the market
technique; third. the market must
necessarily be approaching a stage
where a decidedly constructive develop
ment would produce one of those hair
standing transformation phenomenas
only seen in Wall Street.
World conditions. t is true. still rc-
main in an undeniable state of unrest,
but satisfactory progress is being stead
lily made in the readjuStment program.
Some of the remedies are proving quite
painful and the curative dose hard to
swallow, but still good results are ob.
tained. The recovery is going to be
long and tedious, yet white matters zen
orally at the moment may seem black.
the horizon is not SO heavily laden with
storm clouds as it was year ago. Dav-
light is already in sight. Patience will
be a good thing for all hands concerned
to develop.