Evening star., 1921-06-03
REARsiN CjONtRt(,>'
&-0F :lNDuS1|lR|AiL:S /;
See9p to Have Plenty Of AM
Notwithstanding to Take
Chances.
as By $. r. wEsT.

sNN YORK. june. 5.--The stock mar
ksH Nike that OF yesterday. was given
otar to professional raiding. This was
directed first at. one industrial, then at
another. so that in the end a consider
able part Of this section Of the market
wE Effected TherA -uers Hors stocks
thatessucsunbsd-. to- this selling than
th6e. refs: On previous days. Cohsea
qeFnyE the Impression vas, given. o.
rathef more general weakness.
dasre and theee- bear operators were
soS4s4sfuF:tn bringing. out some. real
st4fe. ahn. there was nothing like the
yaae1re =ol selling; that; there was on
and March. 49, -
Thap<aply development in the news
OF tho da,: was the raising Of the
ratG.pn call loan renewaiS. from to
~ spsf cent This action had been
pretkx clearly >,foresh&do~ed by yes
tecdAy's jump In the figure on new
money to 8 per- cent. As a factor in
counted only in u sentimental way
There is no question Of any deficfen-
cy in the supply. OF funds available
to stock exchange Borrowers as there
il il. shs of sf fo% iss1
other. quarters forcing the price Of
money up Wall street has had TO
meet the higher bids from the
agricultural communities and from
local underwriting. syndicatess in or
der to obtain it's due share of bank
funds. There is no suggestion of bor-
rowers on stock collateral being re-
fused accommodation. much less OF
their being forced TO sell y.
>, Rear Ammunition. ~
The principal material for the bear
campaign were the reportS of slack.
ness In trade and the talk Of further
passing of dividends:
This gossip was emboldened by the
action of the Cuba Cane Sugar df
rectors in oniettng altogether the
quarterly Payment on the preferred
stock
The explanation given was the IA
miliar one about the impossible con-
ditions in the sugar trade and the un-
certainty OF whom a revival might be
expected = = - .'
Sugar stocks were one oYthe groups
under pressure. but they were by no
means the weakest.
Shipping stocks had another sink
ing spell and SO did the oils.
The fact that it-cok practically all
the profits of the first quarter f'In-
vincible Oil to write down it's invep-
tory was a reminder OF what other oil
COMPANIES are likely to show. as the
result of the severe price cutting
which has been. going on since, the
first of the year in their industry.
Marine PreferDed..e
Whenever nowadays any stock de-
velops special weakness rumors i'm
mediately start about. possible cut
ting or passing of dividends These
stories, were in circulation regarding
Marine preferred yesterday afternoon
and today. In quarters close TO the
inside there was. an unwillingness to
declare positively that. the s per cent
was certain. I!l that these. people
would say wasthat they-"thought the
dividend was safe" Mercantile Ma
rine, on account OF the slackness in
the export trade, is losing money sup
posedly on its freight business. But
it is doing almost all of the lucrative
Atlantic passenger traffic, this traff1c
commanding the highest rates on rec
ord. Moreover. tho cash positions of
the company is very strong. and this
is a thing which counts most hoWa-
days whenever. there Is a question of
dipping into surplus. to maintain divi-,
dends which perhaps have not been
covered by current profits. - =. y