The New York herald., 1921-11-01
FINANCIAL NEWS
AND COMMENT
Stock Prices Recede as Profess
SiOnals Take Profits
Bonds Advance.


ings changed abruptly with the opening
of business yesterday. numerous indus
trial issues receding as easily. as they
had been advanced last week. The ex-
planation lay In the of business that
has been done during the. last month
OF the summer for that matter. Specu-
lators were active prior to this week.
bidding up stocks OF companies whose
business made the first signs of recover
ing from depression, and in that connec-
ton the collapse Of railroad strike plans
was a factor of primary Importance.
But much of the stock bought while the
strike outlook was occupying newspaper
| headlines was taken on for sale at a
profit. It was quite clear that realizing
sales supplied much of yesterdays turn
| over. The way for the decline had been
paved In the closing days OF last week
by comment in trading circles to the
effect that prices were about due for a
reaction.
As demonstration Of professional
maneuvring. yesterdays market was all
that one could ask for. Once 1t became
clear that the price un6ertone was weak
ening short sellers took hold, finding
q fruitful field in General Asphalt, Mex
lean Petroleum, Pan American Petro-
leum and Transport, United States Rub
ber and others. Just as the market ap-
praisal of Mexican Petroleum was
shaped last week largely by favorable
discussion of potential oil supplies in the
southern republic, so the price was
pushed down S5s points yesterday by
renewal Of talk about 6windling re-
serves. Were it not for the fact that
the United States has a really impor-
tant interest in the production OF Mexi-
can oil in the next few years, the battle
which has been waged over expert and
near expert examination OF the fields
and through the medium Of rumor and
plain dope would stand high amid the
many examples of stock market opera
bouffe, to which Wall Street has been
treated in the last i've years. The ex-
travagant gambling In that stock has
lent nothing to the promotion Of stable
conditions in the market as a whole
since business began to work out Of Its
after war difficulties.
Railroad shares did very little but
were inclined to give ground under mod
crate sales. The market evidently is
seeking to discover how much was
gained by the carriers through the meet
ing In Chicago. which Is difficult, be-
cause no one may say yet whether
wages are to be permitted to recede
abreast of reductions Of freight rates
The situation promises to be uncertain
until the railroad managers show
whether or not they mean to move for
a new wage readjustment and their at
titude may be directed chiefly by the de-
clsions OF the Interstate Commerce
Commission. A fairly long liso Of Sep
tember railroad reports showed. to an
extent greater than those OF last week,
that economies were not always sue
cessful in converting fall Of gross rev.
enue into favorable net income.
The bond market again moved for
ward under buying of considerable ex-
tent and an advance OF the call loan
rate from 51a to per cent did not
tend to check the momentum Of the mar
ket. The stiffening OF the call rate pre-
sumably was attendant on month end
requirements, and an easier tendency is
looked for in a few days. Sterling ex-
change was slightly lower than 1t was on
Saturday, but there was firm tone to
French and Belgian francs. News that
some sort Of Encouragement Of Ger
many's reparations payment of Novem-
Der Is, postponing the transaction for a
few days. had no reflection in the mark
exchange rate. which, at .5s cent was
down a fraction.
Cotton futures sold off rather sharply
after firm start. the decline of about
40 points showing that much confusion
existed in trading circles over the ac-
tual size of this seasons crop.