The New York herald., 1921-02-24
FINANCIAL NEWS
AND COMMENT
Recoveries in Stock Market
Offset New Weakness in In
dustrial Issues.

veloped yesterday among industrial
company stocks, but these were offset
largely by recoveries of shares which
had fallen before. The product was a
seesaw movement of prices. which meant
little and indicated nothing beside the
efforts OF professional traders to catch
casual profits. The Street undoubtedly
points in Atlantic, Gulf and West In
dies. The recent drop of this issue, ac-
companied by disreputable tactics among
bear operators. whose identity Is being
sought after, was a disturbing influence
for the entire list. In these days Of un-
certainty over business conditions the
course OF the financial markets Is made
sufficiently difficult by actual records
Of earnings and prices when the mar
ket situation Is complicated by outrage
Gus maneuvres of the strong arm va
riety to get a stock down, real under
lying influences OF constructive nature
are made obscure.
Tobacco shares and several others.
including Goodrich, Sears Roebuck &
Co. and American Agricultural Chem
icaL lost considerable ground at the
same time that short covering was lift
ing Atlantic, Gulf and West Indies.
Speculative transactions for the decline
were again directed by expectations OF
unfavorable earnings statements for
1920 and by reference to slow moving
inventories. But, as has been said be-
just now more closely than at the end
Of last year whether the record Of past
performance is q proper criterion for
estimating future prospects. The Wins
low-Townsend bill has been enacted
into law, making available part OF the
S350.000,000 due the railroads on Gov
ernment account, and payment should
work to relieve some Of the monetary
stress that has made the financial pro-
grammes OF some of the roads hard to
handle. There is delay in the settle
ment of railroad wage contentious; /;
nevertheless. signs are not wanting that
railway labor stands ready to work with
the managers Of transportation II cause
is shown Of the need for a smaller out
lay for wages. The railroad outlook
would be by no means as unsatisfactory
as at present IL there were indications
of an early decision In the wage con-
tention, for with the advance of the
spring season there should be an i'm
provement Of traffic. Railroad stocks
made small response to the action Of
the Senate on Tuesday, but at any rate
there was an absence Of selling pres
sure. Prices generally made fractional
gains.
When surveys OF the steel and iron
trade state that buying Is SO small that
it is hard to estimate, and operations
continue to shrink. one might expect
material concessions in the prices of
steel company shares. But the contrary
movement has been the vogue for the
last few weeks. excepting occasional
days Of weakness in particular issues.
The Iror Age reports that ingot pro-
duction in the Pittsburgh district this
week is 10 per cent. lower than a week
sgo and price reactions are showing in
numerous products. The market for
steel shares, like that for the oil issues
is puzzling. The way other industrial
stocks have acted in the last fortnight,
experiencing a reaction of considerable
extent after many had thought them
stabilized in accordance with the state
Of business and commodity prices it
might be thought that the steel and
high grade oil issues were due for a de-
cline But they have been steady. al
though not in great demand all of this
month.
Call money was quoted at per cent.
The somewhat firmer tone of the money
market on the Stock Exchange was not
explained, but swings between and
per cent. mean little. Foreign ex-
change shaded off In the afternoon. ster-
ling losing III cents to s.s7. Cotton and
grain lost ground.