The New York herald., 1921-07-08
FINANCIAL NEWS
AND COMMENT
Market, After Strength, Drops
on New Short Selling and
Profit Taking.

The speed OF Wednesdays upturn of
stocks was too rapid to be maintained
in yesterdays dealings. although the
strength OF railroad issues was pro-
nounced until midafternoon. and sew
eral industrial issues reached upward TO
new high points for the week Exten-
sive selling in the last hour eliminated
most OF the earlier gains. which extend
ed from point to 3 points, and the
final prices OF sugar. steel. oil and
few rail stocks were lower than they
were on Wednesday. Evidently the i'm
tations influenced considerable realizing
sales, and the ever ready short sellers
attacked the market as soon as the price
tone denoted hesitation. Although buy
ing for the long pull presumably has
reduced the floating supply of stocks
since the lowest levels Of June were
reached, the character OF the market
has not changed completely with the
The speculative community has disclosed
readiness after every rally of this year
to take profits without CHANGING the ef-
feet Of possible unfavorable develop
ments at home and abroad
There were yesterday, however. no
events to incite sales. On the contrary
news with application to railroad stocks
was favorable. The Street was Inn
pressed by dispatches from Washington
which stated that the Secretary Of the
Treasury was inclined to hasten the set
tlement of claims and counter claims
growing out of the period Of Govern
ment control by funding railroad debts
to the Treasury coincident with the pay
past services and capital outlay 1t is
evident that the Treasury Department
realizes the prime Importance of put
ting the roads in a cash position to
and make necessary additions and re-
pairs. The lack of adequate railroad
cash has unquestionably been a factor
in the general credit situation, as cor
porations with money due from the
roads have been compelled to wait, and
in turn have been unable to liquidate
loans. The fact that a constructive
railroad policy has been seen in WASH
ington has been an influence Of more
than little value In carrying railroad
shares upward from their low points of
this year.
A broad survey Of the market at the
end of yesterdays dealings showed more
gains than losses considering active and
inactive stocks. Declines Of q point or
more were limited to American Sugar,
Baldwin Locomotive, Bethlehem Steel B.
Corn Products. General Asphalt. Inter
national Paper, Mexican Petroleum. Pan
American, Republic Iron and Steel.
American Beet Sugar and a few others
practically to all classes which have lent
themselves to quick speculative move
ments for many months.
In the bond market the same sort OF
steady buying which had characterized
every preceding session since July was
in evidence. What seemed to be proof of
underlying strength In the investment
field was shown by the sale Of s25,o0o.-
900 of Canadian National Railways 25
year SIS within a few hours after their
books were opened. Call money remained
at 51a per cent and there were frecr
offerings Of time funds at 61h per cent.
than there were on Wednesday. The re-
lation between a relaxed money situa-
ton and the bond market is obvious and
the promise of extensive new offerings
of securities in the next few weeks re-
mains bright.
The grain market displayed strength. |
wheat prices IN Chicago being lifted !
partly by the influence on speculative
sentiment of reports OF unfavorable |
weather conditions In the Southwest |
Wheat futures advanced from 3h to
nearly cents a bushel. Oats gained |
more than a cent a bushel In several |
optiona
The foreign exchanges nuctuated In
a narrow range.