The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-08
LATE HEAVINESSJi
WIPES OUT EARLY.
MARKET ADVANCES
Profit Taking Apparent,
With Trade Remain
ing Active.
VIEWS ARE CHANGED
Traders Believe Many Stocks
Will Go Forward in Pace Of
Reactionary Movement.

NEW YORK. Dec. In the carly
trading on the Stock Exchange IL.
general appearance bore distinct
resemblance to yesterdays session.
Certain spocialties were strong.
with the list as a whole little
changed. After noon. however. sc-
tive selling OF st. Paul turned the
rails heavy and as the day wore o.
early gains among industrials were
cancelled and a number Of losses
amounting to a point or two were
substituted PROFIT taking was ap-
parent and trading was active.
Among the bonds. Libertys contln-
ued 10 sag. VictOrys and Industrialz
were firm, rails were irregular and
foreign bonds were In good de-
nand Call money. after OPENING
at AZ per cent. was raised 10
per cent during the fourth hour and
TO 5 4 per cent during the last hour.
Views Undergo Change.
Commission houses which were
looking for a reaction in tho carly
part OF November and who. AL
though plainly disappointed b." the
markets action in the moan ima.
still believe that there will He a
setback before the end OF the wear.
have suffered their views 10 b. mod.
fled materially. when reaction -
spoken OF now exception is made
OF many Of the more substantial
dividend payers. n IS believed ros-
sible that dozens OF stocks will b.
able TO move forward at warning
PAGES even in the face OF a down
ward swing in the main body ~ the
market. Even the most bearish
houses are making out selected
lists OF stocks which they believe
ran be bought rrohtsbly at stated
distances under the present market.
This or that stock t. pointed out sS
showing unfailing signs Of having
completed its bear market Al the
same time market observers IRE
equally positive in their tones
when warning customers against
climbing for other stocks which
have been too closely ASSOCIATED
with tho operations Of hic tra 3ers.
Taken as whole tho market Suc-
Cests to rnary observers tho PROS
poet Of srotv trading.
Another reduction % = per cent
in the discount rate on eligible
member bank sc-cptauccs would b.
sufficient 70 convince a great many
financial observers that a lowering
Of the reserve bank rediscount rate
would come on December Is in
stead OF later in the month. Tho re-
port today OF the non-n1ember ac-
centance rate being reduced from
AZ to AZ per cent carried some
weight but IL was not convincing
enough.
Weakness IN Rails.
The weakness OF Chicago. MI
v-auke~ and St PAU common md
preferred and. in smaller derrUe
the persistent selling q Penu~vI-
vauia checked what had the an
rorance ~ being renewed buv-
ing movement in the rails The
break in 81 Paul did not come until
shortly after noon. The common
was offered freely before the de-
cline in the preferred. From q
the Junior shares slid down quickly
until thav passed under % before
the beginning Of the fifth hour. The
preferred broke from af2i 20 sex
This stock sold as high as 1881 in
1917 before the dividend was ornr-
ted. The common sold as high as
% IN the same wear. The trouble
with 81 paw stock rs that large
clement ion tho market community
/ do not believe that the company viii
/ be able 10 met its obligations next
spring. They hold 70 this belief in
spite of tho fact that the govern
ment is st PauTs chief creditor.
. Pennsylvania stock declined =
NJ H B.
going down. At a2S this stock was
only Is point above the cNtrCm"
/ low price Of last June.