Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-09-03
SHORT COVERINGS cause
PRICE BOOM IN MARKET
!; Smart Traders Take Advan-
: tage Of Unexpected, Develop
mcnts in Wheat and Cotton.
FORD OUTS PRICES
Huntington Rniiroud Places Huge
Order. for Considerable Material.
Such M Steel Plates, Bars md
Angle Irons.
By Il. l.. IInrntiIn.

the very same traders who only a
few days ago were putting prices
. down. Today's upward price move
ment was due to short covering.
smart. traders realizing that new
factor in the general situation has
been created ty the unexpected de-
velopments in wheat and cotton.
However. those who were not short
of the market showed no uncon-
/, trollablc desire To get aboard. 1t
was believed by Those willing to
stand aside and look On that thu mar
ket would be In "A weakened technical
condition just as soon as the large
D.. outstanding short interest is climi-
mated.
Ford Rr<Iuces Prices.
Much interest was displayed by
Wall Street In the new price cut by
Ford, making the second since June
and tho third within q year. with the
new price for open cars the lowest in
the history OF the company. wall
Street credits Ford with showing "A
grasp OF underlying conditions In
today's statement that those who are
cutting pricce nre doing the one big
thing that will help this country into
more prosperous times. People are
Interested In prices and arc buying
where prices are right.
For a company that was about to
tic taken over by Wall street bank
crs. according to rufEors. only yer?
few months ago. the Ford corpora
ton reported today remarkable
condition ~ Of June 30. Cash stood
at S5I,Sii.000. which. with accounts
receivable. makes Sso,O55.0Oo. THIS
item on June 30. 1920. stood at S62.-
$4,000. Today's statement shows in
ment n year ago showed this item At
3sG.O6s. 900. and between June 30.
1890, and the end of that year, II WAS
largely Increased. Accounts payable
in today's statements stand ~ only
S2S,724.Ooo. There are no notes out,
standing and no bonds. There Is a
nront and loss surplus OF Sla6.GsS.-
600 with outstanding stock of only,
Sl7.o00.00o.
Tell. OF Cnnndn's Finances.
A prominent Wall street banker
returning today from Montreal had
this to say; 1T is like getting out
Of stufry room into the fresh ar
TO get away from come people IN
Wall street and hearing the way
they are talking up In Canada. They
are saying with emile. we may
have thought that good times were
and We may have loaded up with
high-priced commodities. but we
have written the prices OF our In
vcntories down 10 the market or be-
low the market, and we are going
to stand pat until business again be-
gins TO come our way"
With the reserve ratio OF the
twelve Federal reserve banks rs 4
p whole now up TO Cos, against Cos a
year ago and AS Mt this time last
year. Wall Street is combining its IN
tcrest to the statements OF four
banks. These banks in today's
statements OF reserve ratio show the
following: Richmond. 4ol. against
al week ago and $50 year ago;
Atlanta, 4o.S. against io.l week he"
and 4o.7 year ago; Minneapolis.
4 1914. against 400 week ago and
1916 n month ago; Dallas. 40l.
against $40 week ago and sos -
year ago. :.
Eight principal Iron and steel
products are now selling at an aver
age price OF 4s.76. against 1896 n
week ago. 1853 month ago. S5.03
the high for 1890 and $3.50 for Au-
gust OF 1913. typical pre-war price
Cuts Quarterly Dividend.
Southwest Pcnnsyivan pipe today
cut it's quarterly dividend from 81 n
share to 81.
While the official figures for the
country's gold holdings Mt the close
of August VIII not be available for
some days. IL was estimated today
that the figures now stand at new
high record for all time ut s3,37s.-
60S.0o0 This would mean an in
crease since January l OF no less
Ia in
crease heretofore for any full year
was $685., 100000 for 19l6.ror when
the allies were making their heavy
purchases here of food and war sup
plies
Burlington has just placed an or
der for considerable material, such
as steel plates. bars. angle irons.
Montgomery Wards sales for Au-
gust were }5,4S3,000 against s7,751,-
900 for the same period of last Gear. n
decline of 90 per cent; for the eight
months the figures were $36,982, 900
against s7+,393.0 900, n drop Of SO per
cent.
Form 7s5 New Companies.
For the month OF August 785 new
companies were formed, each having
capital of 500. 900 or more, with total
capital of s5S0,o00.00O against $40
companies, having total capital Of
s941. 100000 during August of 1920.
For the eight months the total capt.
tai OF new companies formed was only
s5.979, 100000 against s11,Il 100000
for the same months OF 1920 decrease
OF SO per cent. During this August n
number of new companies with large
capital were formed. several with as
much as sl5.00O.O00. one the Column
bia Carbon Company, with $50.0o0000,
and one, the Dalford Oil Refining
! Company, with s1OO,0oO,d0o.
: Today's dispatches, from Fall River.
state that the cotton print mills. of
that section, had been taking large
orders this week: some for delivery
, as late as the end Of this year, with
prices advancing, until yesterdays
:. government crop report was issued
and then they Withdrew from the
market, refusing to take any more
orders until they had adjusiAl them
selves to the new situation. Today
Wan street was even more enthusiasts
tic than yesterday, regarding sthis
sudden change for the better In the
whole Industrial, agricultural and fin
ancial position, OF, the South. and close
watch is being kept. too. on the adj
vance in wheat. which is going to
help along liquidation of frozen"
Ia n FIIr INo H. &. 49, lr..-