Evening star., 1921-12-21
COPPERS AND OILS
SUSTAIN DECLINES
Market Shows Evening-Up
Process Without Much 4.
Activity.
BY STUART p. WEST.

NEW YORK, December 21.-Today'
flecIine fluctuations on the stock ex-
change had little or no meaning for
the financial situation as whole,
outside causes played no part. The
day was given over to the speculative
coterie which has been endeavoring
TO follow the recent price movement
clearing up their commitments pre-
paratory to the holidays.
These operations involve consider
able weakness, especially during the
carly part of the day in stocks like
the oils and coppers in which specula-
rion for the rise in the last fortnight
or SO has been keenest.
On the other hand 1t involves
strength in a number OF stocks OF
the type of Studebaker. Famous
Players and Sears Roebuck in which
a considerable short interest was out
standing.
In the other markets the day was
quite uneventful, as it was In stocks.
Uncertainty characterized the move
Dealings in foreign exchange were
equally dull and the price variations
equally unimportant. The latest sug-
sestion regarding the conditions upon
which Germany would be allowed
moratorium on the next two 1ndem-
nifty payments-that the TREMENDOUS
initiation of paper note issue should
Cease-iS all the more pertinent, IN
view of the latest German bank re-
port. This showed total increase OF
nearly 100000 marks in the circula-
tion item during the past week and OF
jun. when the German government
6esa.i it's desperate effort to buy gold
and foreign exchange with paper
marks.
Steel Was Firm.
In the stock market the reaction
after almost a fortnight of advanc-
ine prices was not surprising. The
setback was moderate, considering
the extent of the previous rise. The
oil shares were about the only group
Ihnt were really weak. The coppers
started in under the same persistent
selling that had been going on In
them from the outset of the week.
but later in the day this pressure was
lifted.
Steel common stood up sturdily.
even while the selling in the oils
was heaviest. and the locomotive
stocks. especially American Locomo-
tive. gave a remarkably good account
of themselves. So did Corn Products
and the Tobaccos.
Railway shares sagged of early
in the day. but they, too, hardened
again later on.
Further Drop In Coppers.
The heaviness in the copper shares
again today was due to market condl-
tions. to the presence Of a fair-sized
outside speculative account and to alb
Sence of short interest. Nothing has
happened within the last few days to
affect opinion on the copper trade. For
the moment the metal has stopped going
up and predictions Of 15-cent copper by
the first OF the year are not likely to be
realized.
The best Judgment still holds at the
present rate Of consumption the remain
ing copper surplus will have got down
TO normal by next spring. and that then
production will start up again.
This program would be accelerated
if the German reparationS matter is
settled in a way that would be help
full to the industrial outlook in Ger
many, which Is the largest patron OF
american copper of any OF the nations
The selling of Kennecott since the
first of. the week has been rather
more persistent than in any of the
others. 1t is understood that Ca
madam house which recently failed
had a lot Of the stock in loans, and
that much of the selling came from
this source. There is no other rea-
son why Kennecott should have been
especially weak. 1t is among the very
lowest cost producers;
Oil Shares Weak.
As with the coppers; SO with-the
oils These are the only two groups
in which the public have been dab
bling and they are the ones. there
fore, whose market position had be:
come most vulnerable. This was all
that showed in their decline today.
Pacific Oil. and Texas Company went
down the easiest. although in the
case of Texas Company those who
have been most right all along insist
some important announcement re-
garding the distribution to sharehold-
ers of the company's valuable sulphur
properties is near at hand. Cosden.
California Petroleum and Sinclair
went with the rest.
A somewhat belated move in Invin-
chile early in the day was nipped in
the bud. There was no reason for the
special weakness in White Oil so far
As the company's earnings and gem
eral financial position are concerned.
But, as Is well known, a bond issue
has long been under negotiations, and
the assumption was today that this