New-York tribune., 1921-08-12
Stock Prices
Continue to
Lose Ground
Industrials Offered Freely
at Concessio ions; Rail
Shares Under Pesssure;
Good Demand for Bonds

1HAuCiAScS iidhii& 4OI UllStLtlcluSUL
of sentiment in the market for specu-
lative securities continued yesterday
to dominate the situation. Industrial
stocks were in rather free supply most
of the exchange session, and the down
ward movement which began earlier in
the week proceeded further, with many
issues touching new lows. 1t was plain
from the action of the general market
that liquidation was going on in many
industrial issues and the downward
tendency was accelerated somewhat by
fresh speculative offerings for the de-
cline. At the close yesterday the mar
ket showed net losses in many stocks
ranging from l to points. Railway
shares were under pressure as we'll as
the industrials, although the downward
tendency here was not quite so pro-
rounced. Total dealings were some
what in excess of the turnover of the
previous day.
While the market appears to be
largely in the hands Of the so-called
professional trading element at the
moment, an unfavorable aspect of the
situation is the continued forced liqui-
dation which is appearing from day to
day in various issues. Corporate re-
adjustments and congratulations aris-
ing out Of the severity of the general
depression are forcing securities onto
the market for sale. Although the
amount of such selling is not large in
Tie aggregate, it is of sufficient volume
to make an impression in a market
such as is now being experienced In
view Of the present state of business,
further selling OF distressed security
holdings is to be expected.
Certain industrial stocks were de-
pressed yesterday for special reasons
One outstanding feature of weakness
was General Asphalt, which dropped
off sharply on the publication of an un-
favorable earning statement of the
company covering the first half of the
year. Utah Copper was pressed for
sale for time on adverse dividend ru-
mors, and other weak spots were Inter
national Paper, General Electric, Cali
fornia Petroleum, Tobacco Products
preferred, Sears Roebuck and General
Electric. In the rail group Canadian
Pacific and the st. Paul issues were
cons nspicuously weak
Although the momentum of the re-
covery in bond prices has shown signs
of slowing down during the last day or
two, the undertone Of the investment
market continues good and there ex-
ISIS an excellent demand for prime
issues. Indicative of the demand was
the fact yesterday of the oversubscrip-
ton of more than four times of the
S15,000,000 Offering Of Western Union
Telegraph G1a per cent ffteen-year
bonds
This weeks statement of the position
Of the Federal Reserve system dis
closes further Improvement, and the
ratio OF total reserves to deposit and
Federal Reserve liabilities combined,
as shown in the consolidated reports as
OF the close of business Wednesday,
stands at 65 per cent against 63.7 per
cent a week ago. The system made a
further gain of S23.0O0,0O0 in gold re-
serves, mainly through fresh arrivals
from abroad while discounts Of mem
Der banks were smaller in the aggre-
gate. In New York the ratio has risen
/ from 69.2 to 69.9 per cent, with a slight
los in gold reserves, but not much
change in rediscount operations of
member banks.
Call money held at 6 per cent yester-
day, but the banks found it somewhat
more difficult in the afternoon to place
funds on that basis. The exchanges
were firm. In the commodity markets
cotton prices rallied after an early de-
cline, while the grain markets closed
with higher range Of quotations.