Evening star., 1923-05-07
VALUES CRUMBLE
IN STOCK LIST
Bears Pound Prices Down
Again Today in New
Selling Drive.
by STUART p. WEST.


Special Dispatch to The Star.
NEW YORK, May 7.-Violent at
tacks by operators for the decline.
accompanied by further liquidati ton
Ivy SPECTATORS who either had to sell
or were frightened out by the simple
velocity of the recent decline, were
the two chief characteristics of the
stock market today.
New low prices were reached all
through the list. although the losses
were greatest. naturally. in some of
the industrial specialties which had
been bid up so extravagantly during
the winter bull campaign.
Stewart Warner on As Points.
One of these was Stewart Warner.
which opened down 9 points and
was oft altogether some 40 points
from it's top. Another was StromberE
Carburetor in which speculation for
the rise two months had gone to ex-
tremeS. Kelly-Springfeld broke be-
low so. and United States Rubber was
off almost rs much. these being two
other farorites in the advance of two
and three months ago.
Sugar stocks started in higher in
response to the recovery in Cuban
raw sugar. but could not hold out
tionS.
The oils. from the outset. moved
with great irregularity. 1t was con-
Sidered significant that stocks most
directly representing the Standard
Oil interests. which had been the
leaders of the decline following the
first price cuts, were comparatively
steady even while selling was heavi-
est. These stocks were Standard of
California and the new Standard Oil
of New Jersey.
Rail Stocks Hold Better.
Railway shares as a rule did not
suffer like the industrials.
A further disturbing incident was
injected into the market situation by
a flood of letters. accompanied by
spurious certified checks on out-of-
town banks and connection fnStitu-
tions to buy certain stocks at the
opening. Only few houses were
taken in by this hoax. hut the execu-
ton of their orders had curious
effect.
There was no intelligent explana-
tion to he given on the grounds of
outside business changes or revision
of estimates regarding company earn
ings for the resumption of the selling
movement on the stock exchange to-
day after the pause of Friday after
noon.
Again today the stock exchange
kets. Prices went down for a while
very sharply. especially in the in
dustrial favorites of the recent specu-
lation.
Margin Traders Helpless.
The principal reason for the break
in stocks lay in conditions within
the market itself. An average decline
of nearly II points in less than four
",
upon the speculative structure
The spectacle of prices going stead
lily down without semblance of a
rally at length undermines the moral
of people carrying stocks on bor-
rowed money. Becoming demoralized.
whatever these will bring. At the
same time the selling volume Is
swelled by what is termed forced
liquidation" meaning by this selling
that has to be done because specula-
tive holders are either unable or un-
willing to put up more margin.
1t was liquidation Of these two
sorts. plus great deal of short SELL
ing which produced the weakness in
the market today.
Cotton Also Breaks.
Another severe break occurred in the
cotton market. but here it is not so
much a question of overspeculation as
of the curtailing of mill demands while
better line is being obtained upon
the seasons probable supply.
Sterling exchange went to a new
low for the year, rejecting prepara-
tions for meeting the next interest
installment on the British war debt
At s4.62 1t was off over 10 cents in
the pound from the high of February.
The rush of selling increased as
the day went on. Here and there in
Individual stocks signs of resistance
appeared. The selling wave engulfed
practically the entire list. and prices
were swept downward 2. 3 and 5
points.
Steel Breaks Below Par.
1t was shortly before o'clock that
United States Steel common broke
para notable achievement from the
bear standpoint for its effect upon
sentiment. Independent steel shares
were equally weak.
Baldwin Locomotive and Stude-
baker were consistently pressed for
sale and so were the oil stocks. The
losses in this group ran from to
over points, with greatest weakness
in California Petroleum and Phillips
Petroleum.
Railway shares. after early steadi-
ness, Joined in the general route. At
their lows of the afternoon Union
Pacific, Baltimore and Ohio, Reading,
Northern Pacific and Great Northern
nraferrad uera off nniptS