Evening star., 1921-04-29
EARLY ADVANCE IS
CHECKED BY RUMOR
Exhaustion of Mexican Oil
Fields Causes Sharp Re-
action in Market.

Fields Causes Sharp Re-
action in Market.
NEW YORK. April 2s-Todays
stock market was strong. in fact
buoyant. until a press report from
| Washington came out with a sensa
tional statement on Mexican oil af-
| fairs.
Certain federal agents were quoted
| as reporting that the present pro-
i ducing oil fields Of Mexico will soon
| be a matter of history" and that
the United States would have to look
elsewhere for it's future oil supply.
These assertions went further. con-
siderably than those attributed to the
Secretary of Commerce along the
same line some time ago.
Immediately there set in rush to
sell Mexican Petroleum. under which
the stock broke with great violence.
This decline checked the upward
movement in other directions and
brought about some reaction. Still
condition that it did not impair the
strong tone throughout the mark ct
generally.
Good Advance Checked.
During the first two hours before
the Mexican oil episode. the market
made new high prices all around. TO
some extent. as in the case of equip
ments and steels. the rise appeared to
be more in the nature of a final round :
ing up of a short interest than a
fresh campaign on the buying side.
Still there was a lot of new buying
in addition to this short covering. and
it reflected again the growing feel
ing of confidence throughout the
country that the general business
was pointed definitely upward.
Along with the improved sentiment
toward the business outlook the mar
ket was also responding to the contin-
ued recovery in the banking position
and to the virtual certainty that this
will be followed very soon by reduc-
tion in federal discount rate.
Finances Are Satisfactory.
No attention was paid to the per
cent call money renewal quoted today,
as this was, of course, due to the tenn
porary withdrawal of funds for use in
the May settlement. The important
thing is that the federal reserve ratio
has risen again within the last week
from 54.1 to SIS per cent, and that this
! has been accomplished by deflation in
| loans and circulating notes-that is.
the instruments of credit-quite as
! much as by the extraordinary access
| sion of imported gold.
Industrial Alcohol.
Buying of Industrial Alcohol, which
carried the stock across 40. was based
on the expectation that the directors
when they meet next month will de-
| clare the regular dividend at the per
cent rate. People closely in touch with
| the company's affairs when asked
about the dividend policy have been
| rather cautious in their replies. They
have taken the attitude that the meet
ing was too far off for a positive pre-
d1ctlon Is TO what would be done. But
they have said at the same time that
so far the dividend was safe.
The annual report showed Industrial
Alcohol in very strong financial posi-
ton. The only question was as to
| present business conditions. But since
then the president of the company has
| stated that while not up to last year,
business since the first of January has
| been satisfactory, and it is this state
| ment that is relied upon in figuring
| about the dividend.
Buying Endicott-Johnson.
~ A lot of Endicott johnson stock
| mas had to be absorbed around 62 and
63, representing the cleaning up of
| certain accounts which were carried
| over from last autumn's smash.
whether or not this liquidation has
been completed it was regarded as
| significant that Endicott Johnson
should have broken through the So
level today and taken its place among
the market features. The buyine
! which has been going on for the last
Few weeks is based upon three con-
siderations
First, there is the improvement in
the boot and shoe industry itself,
noted in the reports from the New
England manufacturing centers for
! month past.
Second: there is the downward re-
! vision of Is to 20 per cent in the
company's wage scales.
Tnird, there is the fact that Endi =
colt johnson stock is up only a lit
! tie over Is points from the bottom
of Hotpoint decline and therefore
seems to the average person to have
! unusually large possibilities of re-
covery.
The Declines.
Mexican Petroleum dropped back
depletion story and came back frac-
tionally.
The general market. with the ex-
ception of Steel common. followed the
leadership of the favorite specula-
tive stock into lower levels and re-
| mained weak until after l o'clock,
when some Of them came back frac-
tionally.
Rails and industrials alike partici-
pated in the softsning following the
Petroleum announcement.
COTTON MARKETS.