The Washington herald., 1921-05-04

NEW YORK, May 3.-Despite the
attempts of professionals to rake
headway by bringing forth the new
fayoritee, the market pursued de-
clining course after the display Of
uncertainty In the first hour. Not
even an easing of the call money
rate to s1s~per cent around the ind
of the fourth hour could stop the
general profit taking and the return
of many traders to the short side Of
the market, A few specialties made
marked forward progress such as
Allied Chemical American Agricui-
.ural Chemical and Atlantic Gulf,
but broadly speaking, the trend was
downward. American cotton oil sold
of sharply on the omission of the
regular preferred dividend. Other
weak features were United Retail
Stores. Tobacco Products. Mexican
Petroleum. United States Rubber
and Sears Roebuck.
Another industrial which came in
to the limelight under practically
the same auspices as Industrial Al
cohoi was Allied Chemical and Dye
common stock. Last week when this
issue was selling around 4zk Il was
stated in one large house that a
combination had been formed TO
boost this stock. Quiet buying
started late in the week and yester-
day resulting in a price of I4h at
the close. Before noon today it had
touched 4sh.
The impression one gained on a
tour Of the commission houses this
morning was that Wall Street has
grown less sure Iof its bearings.
Doubt Of the markets sbility to
continue advancing began to creep
into the average traders mind late
last week and yesterdays advances
converted this state OF mind into a
psychological factor which is likely
to be reflected in the demand for
stocks. The elimination of the
short interest Is not a ,serious con-
sideration when Il iS counterbaI-
anced by a proportionate increase
in public demand. Observers Of The
present situation believe the re-
ports of public participation for they
have commission house records as
guide, but II Is only the extreme
optimistic who believes that buying
from this source has grown in pro-
portion to the retirement Of the
short interest This whole feeling
of uncertainty began to make itself
felt before todsy's market was tn
session an hour.
Big traders continued to single
out previously inactive specialties
and mark them UP without regard
for hesitancy in standard issues.
Industrial Alcohol was one of the
favorites selected today. The move
ment of two points in the first hour
confirmed accurately to information
freely offered in several houses be-
fore the opening. The story was
that the same group of big opera
tors had been active in Cen
Steel b." and American Inter-
national. While there is no posi-
tive assurance that they had aban-
doned these stocks m favor of Al
cohol. it was significant that the
rise in the latter was concurrent
with reactions in all but American
Intentional. Miscellaneous gossip
which has been heard for several
days was dished up anew. and
brought out TO give an appearance
of substance to the buying of AL
cohol.
The possibility of a forward
movement in the railroad shares in
the event that the Railway Labor
Board makes a decision in favor of
the wage applications now under
consideration is being considered
seriously IN speculative circles.
Even today traders showed q dis