Evening star., 1921-11-09
.ST0CKSARE HIGHER
AND TRADE ACTIVE
BY 5. p. WEST.

BY 5. p. WEST.
NEW YORK, November s.-Very lit
tie happened over the holiday to affect
the Wall Street situation. The election
results meant nothing from a financial
point Of view.
While New York was closed for busi-
ness the German mark had struck a
new low. This morning there came a
sharp rebound from the "a minimum to
above 40, followed by q reaction later.
The fluctuations had no bearing upon
calculations in other markets.
The stock market was definitely
strong from the outset 1t needed no
stimulus to put it up. 1t was simply
continuing the movement interrupted
by the holiday, rejecting primarily
confidence in the business outlook and
enthusiasm over the abundance of the
money supply. the downward tend
ency OF interest rates and the con-
sequent huge demand for investment
issues.
Two new offerings of bonds came
out this morning-one a $27,500,O00
Goodyear Rubber loan, the other the
$2,5O0,O00 farm loan bonds-and both
were snapped up with avidity. Mean
while the general bond list continued
active and very strong.
There was the same overflow de-
mand for investment issues in. the
stock market, with the result that
preferred industrials like Standard
Oil, American Car and Foundry,
American Can and American Smelt-
ing and common stocks like Car and
Foundry and American Telephone and
Telegraph rose sharply again.
Speculative Shares Firm.
The speculative list was equally
well sustained, to the discontinue Of
hns iah
been looking for reaction.
Mexican Petroleum went through
it's previous high of the recent move
ment with a rush. Baldwin Locomo-
tive, in which a short interest had
accumulated, ran up briskly.
high on word that the company had
raised the price of gulf crude oil
again.
fhe motor groups were prominent
under the lead of General Motors an6
the Fisher Body preferred.
in part by the general wave of in
vestr1ent buying and by the news
that the western carriers had an
nounced their intention to cut wages
another 10 per cent.
The question now is what the at
titude of the Labor Board will be
toward this proposal and how long
it will take to reach decision. If
there is to be a protracted delay, and
the further rate cuts are put into
effect in the meantime, it will not be
an argument in favor of railway
stocks in general.
The buoyancy of today's market
upset>the calculations of the trading
rank and file and Of most of the
Wall street letter writer's, who have
been talking for several days past
about stocks being distributed" and
have been predicting a reaction.
What this element have failed to
appreciate Is the strong background
afforded the speculative list by the
voracious investment demand.
Stocks paying no dividends are not
apt to be affected. but almost ev-
erything on the dividend list that
has any claim to the permanence Of
its dividend is bound to feel, in one
degree or another, the influence. Of
investment buying. :,
At the same time there could not
have been any distribution of
speculative lines or such leaders as
.Pacihe Oil. Texas Company, Baldwin
Locpmptive and the steels would not
have come back with the ease and
snap which they showed Monday and
&aiA enday.