The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-08-23
FINANCIAL NEWS
AND COMMENT
Rail Stocks Suddenly Weaken
After Industrials Drop
Cotton Is Active.

The rather sudden weakness which
came into railroad stocks yesterday may
have been the product OF liquidation
from sources which needed cash. but It
seemed more probable that the down.
ward movement was merely part and
parcel of the sort of markets recently
experienced. For three weeks daily
transactions have been shaped chiefly by
the lack Of buying power, the most I'M
portant demonstration OF this fact, until
yesterday, being among petroleum, aa-
tomobile. leather and various special Is
sues. 1t was inherent in business Of
this character that all groups Of shares,
sooner or later, would receive attention
from short sellers. The days news abo It
railroads was by no means uusettling.
During the trading period the Street
was informed from Washington that the
funding measure. which entails the
replenishment of railway treasures
through sales OF securities in the hands
of the Director General OF Railroads,
was expected TO pass the House and the
intimation has been strong all along
that the bill would receive attention in
the Senate soon after Congress convenes
next month.
The weakness Of rails developed after
the familiar process OF offering down
Industrial shares had gone on for half
OF the market session. The atmosphere
Of the market place was not made more
cheerful by the failure OF New York
prices could hardly be traced directly.
The trouble with stocks was what has
been emphasized repeatedly in this co..
umn--the reluctance of spectators and
til they can see more visible signs Of
general revival of business than are
now apparent. Improvement tx par
tcular directions is admitted by those
who follow trade statistics closely. 1t
Is seen In the steel trade. the last great
Industrial department to start into de-
fation last year, but betterment is stlil
too spotty and slow to arouse enthusi-
asm for stocks. As short selling has
been the leading instrument In the de-
cline, 1t goes without saying that the APP
pearance of important constructive news
and developments could lead easily TO a
substantial recovery.
Rail shares bearing dividends were
under greater pressure than those not
on a dividend basis, Great Northern
preferred, Northern Pacific. Reading.
Southern Pacific and Union Pacific re-
ceding II to points. Declines in ex-
cess of point were scattered broadly
among the Industrial list several touch
ing new low levels for the year. In the
bond market Pennsylvania Is and Gas
were strong. and others gained good
/ ever. were on rather small scale.
which, perhaps, reflected to a degree the
vacation season. The retention of a "
/ per cent. call loan rate and rate OF
per cent. for collateral time loans sug-
gested that the money market was
lodged in q modei ately easy position
and the Federal Reserve statements of
recent weeks afforded the basis of expec-
tation Of relaxed rates In tho near
future.
| The cotton market supplied as much
interest to the financial markets as did
stocks. Active bidding came out on the
heels of dispatches from points In Texas
and told OF high temperatures and the
unfavorable effect or heat on the grow
ing plant. Gains OF 80 to so points were
maintained at the close.
| Wheat futures also left off with
strength, advances Of 2 to IA cents a
bushel rejecting reports OF increased
buying for export.