The Washington herald., 1921-07-02

NEW 1Ohks july i.--cpeculatiNe
onslaughts upon the same set of is
sues which had disturbed Thurs
days stock market continued today.
Otherwise the market was a typical
pre-holiday affair. noted principally
for Its bullness and general lack of
direction. Preparations for a three
day suspension of trading were
practically completed before the ses-
sion started but there was still a
little adjusting to be done in view
of the prominence given to the
highly speculative issues referred
to-. The days transactions were
small in the aggregate. and con-
sisted in a great measure of profess
sional trades of shares between op-
orators on the -foor Of the exchange.
Apart from the sharp declines In the
Mexican oil shares. weakness was
most pronounced in Sears Roebuck,
International Harvester, United
States Rubber and q few other mis-
cellaneous .industrials. Railroads
were again Strong.
Sears Roebuck common was Of
fered down in the second hour fol-
lowing publication of the companys
June business showing a decrease
OF more than 20 per cent in sales by
comparison with June, 1920. The
stock closed at 66 yesterday and on
heavy offerings broke to 63% before
meeting any support Tke~Street did
not look upon this selling as an at
tack by shorts. but rather thought
nnNrfAaffnn Of
some large account at a time when
the demand was particularly small.
Sears Roebuck common has fol-
lowed an irregular course since the
beginning of the year. On January
3 it sold at ss%. but gradually fell
away when maintenance of the reg
ular divided was brought into
question. touching 65S on March 2S,
the day on which the directors de-
eided to pass the dividend. 1t later
took part in the spring recovery.
going to SIN on April 80. Then in
the general slump IL sold of to
SO Il on June % and recovered to ~
last week.
BEFORE the market opened today
the Street was uncertain as to the
course Mexican Petroleum wouIl
follow. The stock had recovered al
most 3 points to 101 before the
close yesterday and nothing of an
unfavorable nature developed over
night. Traders were a bit surprised,
therefore, to see the stock break
from an opening price OF 1917 to
9Sk on the first string of sales.
Thereafter IL rebousded a point or
so but by midday had slid down to
s6. Wall Street still processes to be
mystified by the tremendous daily
turnover in Mexican Petroleum. The
floating supply is estimated at
something like 100000 shares. Yes
terday an aggregate of $4,000
shares were sold on the two ex-
changes on which the stock is
listed broker checked up the net
long position of a small number of
the larger commission houses yes
terday and found a large bull ac-
count, constituting a considerable
part of the supposed outstanding
and free stock. Yet in spite of these
figures and this evidence the stock
loaned at 4 per cent interest after
the close.
Half of the market community
anticipated the triple holiday by
putting their affairs in order before
the close yesterday and leaving a
day in advance. Brok erage houses
were thinly populated today and
even on the floor of the exchange
the attendance was small. The feel
lngs of the average trader on leay-
ing for this short vacation were
much different from those enter
tained prior to the last triple holi-
day. That was the Memorial Day
vacation, which came at a time
when the market had been reactine
steadily for more than three weeks
with no apparent prospect of a
change for the better. In the pres
ent instance, despite the Weakness
of specialties, traders went away
full of hope
While awaiting the reduction in
steel prices which everyone in the
Street expects with as much conf
dence as If an official announcement
had been made. the market commu-
ity was greatly interested in, and
not little gratified by the an
nouncement that wages in the
Steelton plant of the Bethlehem
Steel Company will be reduced Is
per cent on July Is and that on the
first of August a 10 per cent reduc-