The Washington herald., 1921-06-21

weakness was shown in 1mericsn n
International, American wooleE,
Corn Products and Sears -Roeouck
Transactions were in excess OF
1.000. 900 shares evea at the end of
the fourth hour.
One of the results Of today's
heavy selling of railroad stocks
was to force the price of twenty
representative issues down below
the average of last December. In
cidentally the December average
was the lowest in some twenty
years.
When United States Steel COM
mon broke below it's previous low
price of 1914 traders became bear
ish on the iEdependea: Steels,
principally Bethlehem B. Crucible'
Lackawanna, and Republic Re
ports coming from the steel
producing centers continue TO fur
nish agreements for short selling
and real Liquidation in tbs Steel
group. There was no change in the
tone of statements coming over the
weekend.
II further evidence that cheap
call money and rising sock prN
do not necessarily go hand in hand
was needed, the acticn OF the mar
ket for several days past has been
serviceable. Loans were renewed
again ar 5IL per cent, and the sup
ply of funds seemed pleutifu', N'
the decline in stocks showed n
NF. ri
of call money, brokers are urwH
ing to bid higher than So per cent
for time loans. and are finding a
very small supply at tEat ngure.
The demands. however. are not
heavy. The principal demand for
commercial paper is said to be
| coming from the country banks.
Prime paper is being discounted at
So and So per cent A further
cut in the price OF mid-continent
crude oil to 81 a barrel was in
part responsible fer the heayiness
of American oil stocks today. With
overproduction looming up as the
greatest problem confronting the
oil industry. the value of reports
Of new wells is shrinking in Wall
Street estimation. The Oklahoma
Corporation Commission has pro-
hibited further drilling in one OF
the most important fields IN that
State. The Secretary of the In
terror has also given recognition to
overproduction. suspending the re-
quirements for drilling on feases
granted or to be granted by the
government.
Various suggestions were made
today in an attempt to explain the
extreme weakness in Canadian Pa
ciflc stock. At the close on Satur-
day the stock was So points under
the high of that day. most OF the
selling coming in the last quarter
hour. 1t opened today without a
loss at los. advanced a half point.
and then sold down rapidly. going
from 104iL to 1o1 OIL the sale of
1900 shares. This was the lowest
price at which Canadian Pacific
had sold in twenty years. and was
1Si4 points under the 1921 high.
Foreign selling is alU avs an ac-
ceptahle explanation when Ca
madam Pacific develops weakness
1t was stated in one quarter that
block Of German holdings Of this
stock had been shipped to this
country some time ago to await
selling orders. and that some OF
this stock was sold today. Union
Pacific, which is also a 10 per cent
stock. sold at Ile when Canadian
was at l01. Comparison between
the two is not considered exactly
fair, in view OF the fact that the
Unions dividend record and fnan-
cial position were earned. whereas
the Canadian Pacific has often re-
ceived government assistance in the
past. The question which many in
the Street now raise is whether the
Canadian or British governments
are in A position to help the Ca
madam Pacific to maintain its divi-
dend record.
One commission house described
the selling of railroad stocks this
morning as smoke screen TO ia
cilitate short covering in other di-
rections. The only fault that can
be found with this theory lies in
the fact that industrials did not
show any gIaring evidence OF such
covering. The theory was prob
ably suggested by the recollection
that a sudden drive on the rails
has had that significance fire.
Quently IN the past. Losses Of one
and two points were spread over
broad list OF railroad stocks today.
Reading. Union Pacific, St Paul.
and Rock Island were conspicuous
losers. Low-priced shares reacted
in proportion. Kansas City
Southern. which has made some
kind of response to every favorable
monthly earning statement since
last fall, failed to profit today on
the publication of the May state
ment showing continued progress
in earnings