The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-21
OILSLEADUPTUR'.
NIICHT TRADEAf
COSTOF SHORTS
Rails Run Second in Re
covery From Recent !.
Bearishness.
BEARS STAND SHAKY
Declaration Of Pullman ,Divi-
dends Disrupts Campaign.
Crude Oil Prices Advance.

NEW YORK, Oct ao.-Today's
stock market furnished additionaI
evidence that a small volume Of
transactions is required on an al
vance more 30 than on q decline.
With oils again leading and rails
running a close second. the whole
market moved forward. largely ae
the expense Of shorts There was =
recoil from the recent cbearishness
toward every. class Of stocks, even
the shares rejecting demand
which was in sharp contrast with
that Of yesterday and TUESDAY.
Gains OF 1 to points were spread
over broad list Of stocks, few
making new high records for the
year.
Bears Position wesk.
The position OF bear operators
under present market conditions
was concisely and crispIy described
by a large commission house in
these words: "A bear market when
needs for its background events al
ready passed cannot be long s0S-
tained." The author Of this state.
ment goes on TO say that most Of
the recent selling has been on poor
quarterly statements II was the
misfortune Of some operators on the
short side that they should have
launched an attack against Pullman
on the>day preceding the declaras
ton OF regular dividends for two
quarters. and Of another CLIQUE or
bears that their venture on the
short side Of American Sugar stocks
should have spoiled by the inter
ference Of President Babst on be-
half OF the stockholders.
PetroIeum Industry.
No discussion OF any stock mar.
ket session OF the past three weeks
or more has been complete without
an explanation Of the latest devSl-
opment in the petroleum industry
and its effect upon the oil stocks.
Today Was no exception The pre-
diction Of another advance in crude
oil prices which Wall Street heard
on Tuesday was something better
than bull propaganda Il was
brought out as the opinion Of OK
perts- A few minutes before the
market opened this morning word
~
been advanced 25 cents a barrel 20
$3.50. Other Eastern grades i'm
mediately followed the example Of
Pennsylvania. Naturally this news
called for q rise in of stocks just as
previous price increases had done,
and in this respect Wall Street wa s
not disappointed. All the oils on
the big board and the more sub
stantiai ones on the curb exchange
started forward with the opening
bell, some reaching new high levels
for the movement Pacific of was
one Of these. On the upward sport
last week this stock was freely Of
fered when II reached the years
record high price of l1h To-day il
went through that level without
any dificulty.
Some traders are buying the. oil
stocks for quick profits and are in
fuenced chiefly by day 20 day devel-
opments. which are likely 20 be re-
fected in corporate earnings during
the next few weeks or months
They consider the repeated ad-
vances in crude prices chiefly for
their effect upon inventories at the
end Of the year. The stock that Is
being taken away from Wall Street.
on the other hand. Is the result Of
I what the speculative community
calls buying for the long pull. e
Developments ef far-reachirE "a
ture are considered by this class OF
/ buyers.