Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-16
MARKET MOVEMENT
HIGHLY FEVER|SH.
Midday Smash in Mexican
Petroleum Caused cancelIa.
ton Of Early Recovery

New York, june 16.-Trnding in to.
days stock market was of n pre- -Cmi
nently discriminating character. Price
movement continued extremely irregular
and fcvcrish. There were both strong
and weak spots, but the general market
again conspicuously lacked stability.
The sugar stocks came in for another
hard drubbing. Considerable pressure
still prevailed against the oil group. The
steel shares were sensitive and so were
the equipments, but the rails were Dol
stored up by the strength of the Hell
shares, which made a rather disappoint-
ing response to the declaration Of the
regular Northern Pacific dividend.
Between the time Wall Street closed
up its shutters yesterday and resumed
business this morning there were sew.
eral developments of highly con-
structive character. One was the de-
cision of the Northern Pacific board to
maintain the I per cent dividend rate.
1t was frankly admitted the dividend
was not earned, but the board decided
tn dip into surplus There was some
division of opinion as to whether this
was altogether Il wise policy. Another
bit of good news was the announcement
of the reduction of the rediscount rate
| by the Federal Reserve Bank from ca
! to q per cent. Apparently the street
would have been more disappointed If
the reduction had not been made than
they were surprised in that il was done.
Possibly this accounted for the short
| bulIish influence these two constructive
developments had upon the market. As
the day progressed. however, it was
quite apparent the necessary qualfica-
ton to maintain the recovery was con-
,ft,t, l.. 4
power. There was quite big scramble
of the shorts at the outset to get in
out of the wet as il was not certain how
far the powers to- be might be disposed
to carry the recovery. When they dis =
covered they were supplying the prinCi-
pal buying demand. and when rccurrent
| !iquidationS began to crop out in differ
rnt parts of the list. together with prof
taking by those who had the temerity
to pick up stocks during the recent vol
canic shakedown. the covering quickly
subsidized, and robbed of this artificial
| support the market started to crumble
again, but weakness was confined TO
tower groups, as beneath the ragged sur
! face appearance there was an under
current of growing resistance.
opening of today's trading, with shorts
soon gained points, while Great
| Northern. Louisville and Nashville. At
lantic Coast Line, New York Central.
Reading, Baltimore and Ohio and Texas
and Pacific advanced to 2l2 points.
Mexican Petroleum, yesterdays weak
est feature, made an initial rally Of
3 points. Pan American Petro-
leum rose 21a, the "B" stock rising
| 81. Baldwin Locomotive, Studcbakcr
and American Sugar were among the
other strong Issues.
| The greater part of the early advance
was Cancelled within the first hour, ex-
tremc hcavincss being shown by various
specialtics, particularly sugars and to-
baccos. Steels, equipments, shirpings
and chemicals also gave way. American
Sugar, American Tobacco, Sumatra To-
bacco, Bethlehem. CrIcible and Replo-
gle Steels, Pullman, Chicago Pneumatic
Tool, Atlantic Gulf. Mercantile Marine
preferred and Industrial Alcohol fell
TO points Just before noon Mexican
Petroleum became the center of another
severe drive. selling down TO 1l04 or
further reaction of points. Stude.
baker and American Woolen also were
| weak