Evening star., 1921-08-05
REACTION IN RAILS:
TRADERS BEAR|SH
Market Slow - Orders Are
Few and Gossip Favors the
Selling Side.
BY STUART p. WEST,

NEW YORK, August 5.-Lower quo
tations for the rails. especially those
that enjoyed the largest Improvement
early in the week, marked resump-
ton OF trading today. To specify,
taking the lows of the first hour.
Northern Pacific at 76% was 4 points
down from the high Of the week:
Great Northern preferred at TAN. off
3 = points: New York Central at 7as.
off 2la points: Union Paciflce at 1908.
on 2S; Atchison at SAN. Off 2A:
Southern Pacific at II. off points;
Pennsylvania at BIN, off points, and
Reading at 69A. off 21s.
These quotations are part of the record,
but significance they have none, except
possibly to show what profit repurchases
would realize to the hypothetical trader
who sold at Mondays and Tuesdays
high.
The railroad situation is unchanged
and the market continued to make no
distinction between roads which, like
the Atchison. have actually demonstrated
their ability to get operating expenses
under sufficient control to secure a good
margin for the stockholders and roads
which, like the Northern Pacific, have
still to demonstrate the same ability.
Industrials Were Weak.
OIL, steels. equipment and coppers
were all weak. Traders professed to
consider the sale of a large block of
the metal under 12 cents as an ex-
cuse for selling copper shares. Little
response was made by the sugars to
continued firmness in the market for
refined sugar. The Java crop has all
been sold. according to today's advices,
and so another obstacle to the hoped
for Cuban revival has been removed.
Probably the big event. as far as the
speculative interest goes, will be the
dividend meeting of American Sugar
Refining Company on next Wednesday.
Commodities Strong.
Turning from the stocks to the
commercial markets, cotton futures
again were strong. New high levels
were reached for the current move
conflict of opinion between Liverpool
and the southwest. on the selling side.
and Wall street and the traders on
the buying. One was Influenced by
supply. the other by demand. 1t was
not difficult to mobilize arguments for
from the wholesale dry goods trade
continue encouraging.
Grain quotations showed further
decline without any particular change
Ia the statistical situation. The reduc-
ton of freight rates from Central
Atlantic ports had little effect.
Did Not Count Heavily.
Little attention was paid to the
weekly statement of the federal re-
serve banks. The reserve percentage
for the system was up and that for
the New York bank was down.
But in both cases the figure is so
high that minor fluctuations are with
out great significance. The ultimate
effect of the steady piling up of gold
reserve few are so hardy as to pre-
dict. Meanwhile call money was quot
ed at per cent and there was a dis
tinct hardening in rates for time
loans. The bond market, while not so
strong. showed an increasig breadth,
the number Of issues traded in
steadily increasing. Dealers reported
difficulty in accumulating in large
blocks of desirable securities at cur
rent prices. If this demand for prime
investment is any criterion, the money
situation has not materially changed
Foreign exchange was irregular,
following yesterdays sharp advance