Evening star., 1921-02-19
WALL STREET INFLUENCED
BY MANY CROSS CURRENTS
DEVELOPMENTS Favorable and Unfavorable.
With Latter in Majority-Real
Improvement Slow.

statements. it will also have much
mat IS encouraging to buoy it up
conditions in the New England
textile mills are rapidly getting back
to normal. that the cut in prices is
stimulating new business on a large
enough scale to keep operations ul
In many cases to capacity.
Some Betterments.
There is no doubt, too, that the
retail and distributive trade is in
better shape than it was two months
ago; that high-priced goods have been
worked off and the Shelves cleared
for new buying at the reduced price
levels.
The indications are that the lower
Ing OF oil prices since the middle of
January have been radical enough to
readJust the industry completely to
the new conditions of general busi-
ness. All the tobacco concerns are
nourishing. and their current earn
lngs statements are showing it,
summing up the Wall street posi-
ton in relation to outside trade. the
market is a carefully discriminating
one. 1t has ceased to move in any
marking time while the outside situa-
tlon Is developing. But with stocks
OF companies which are doing a good
business or which. having completed
their adjustment. are on the upgrade.
the tendency is toward higher prices.
vorable position will either be left
alone. or quite likely will work lower.
Too Many New Bonds.
The investment section of the mar
ket is working out precisely on the
lines expected. Syndicates bringing
out new capital issues have tempo-
rarily overdone things.
IL was discovered a fortnight ago
that most of the declared oversub-
scrlptlons were not real oversubscrip-
tlons at all, and that a great part of
the applications came from dealers
VINO were merely anxious to make a
quick turn and get out. The market
1or these new securities finally be-
came congested. and a resting spell
was necessary to allow a better dis
triDution to the ultimate investor.
The competition of the $3.50 Oo0 O0o
OF pew bonds and notes put out since
the beginning of the year was keen
~ enough felt in the regular bond
iist to check the rise there and to
nring about reaction. Altogether
me increase in the investment sup
keep pace with it, and while there
IS nothing serious in this situation,
II does call for a suspension of syn
d1cate Undertakings for the time
pelng ana Tor less haste on the part
or the investment buyer for fear that
ne may be missing an exceptional
Foreign Exchanges.
The sharp reaction in the foreign
exchanges toward the close of the
week is set down partly to the deci-
sion of the British treasury to begin
preparations for paying interest on
Its American debt and partly it is
analysed as sequel to a speculative
movement which had been pushed too
Vigorously In no wise does the
downward turn reflect upon the
causes which have underIain the i'm
Drovement in the exchange markets
since the close of December. 1t still
remains true that the British for
eign trade is steadily coming back to
normal. that other European coun-
tries are cutting down their imports
ana in some cases Increasing their
exports and that If the all-important
German reparations question can be
settled the International business out
ook will appear altogether cheerful
This has been the main basis for the
recent advance in the exchanges and
has not been weakened by the
attest developments.
Copyright, 1921