The New York herald., 1921-12-08
FINANCIAL NEWS
AND CjMMENT
Stocks React Under Pressure
of Realizing-FOreign Ex-
changes Drop.

[ speculation TOT lne uecllDo met with
some success in the security markets
I yesterday. assisted. In the case OF bonds.
| by the desire Of holders with substan-
tial paper profits TO convert them into
was limited chiefly to Issues which had
advanced rapidly of late. making them
vulnerable to realizing sales, or were
affected by especial influences. Thus
pressure against Chicago. Milwaukee
and st. Paul shares and Pennsylvani
Railroad plainly was brought about by
comment on the fact that earnings have
been insufficient to meet fixed charges.
There was nothing new about that SIT
uation. but the market was moved TO
discriminate between shares OF proper
ties which improved their earnings in
September and October TO degree that
warranted expectations of better things
later and others which wero thought not
to have made satisfactory gains during
the autumn. dividend OF 10 per cent.
on Pere Marquette per cent. preferred
stock acted 10 sharpen the contrast
which exists between roads being oper-
ated at a profit and others which are
not.
In the industrial list automobile. rub
Der and oil shares were prominent In
the reaction. AS they had been bid up
ward for several preceding days, there
was nothing significant about the set
back. Ths same situation prevailed
among railroad equipment stocks. and it
was probable that the slowness with
which the proposed merger of seven
independent steel companies was going
forward caused sales of certain steel
stocks by impatient spectators who
had bought them in the last fortnight
The current steel trade news was by no
means conducive TO change OF senti-
ment about the outlook for manufac-
turing. Pig iron makers were forced to
expand production in November, COM
pared with October results, because OF
large inroads into iron stocks made by
Increased steel manufac turing since
4 August. The IRON Age reported daily
output OF 47,1s5 tons In November. In
contrast to 40.215 tons In October. an
expansion made possible by resumption
OF twenty-four previously idle fur
naces Tin plate mills are active in all
sections Of thu industry. In heavy ma
terials the largest demand is coming
from railroads and car builders, a fact
that holds out good prospects for fairly
active business In the first quarter
of 1922.
Reaction marked all markets except
that Of call money. which moved up
ward from IA per cent TO 6 "a per cent.
Although the range OF money was not
unusual, II was likely that the after
moons stiffer tone had a part in the
selling OF stocks. Tho holiday demands
are evidently being felt In the money
market. but the cost Of credit is not as
yet showing signs of rising, an excellent
proof of which was provided yesterday
by the quick sale Of S16,4o0.000 Oregon
20 yield about 6 y per cent. the lowest
return SO far recorded on an issue of
their class. They Immediately advanced
~ points In open market dealings.
The foreign exchanges failed to hold
Tuesdays brisk upturn. an event not
surprising In the present state of un-
certainty about reparatIons and other
matters which affect quotations Inquiry
shows that bankers with excellent In
ternationai connections are as much in
the dark as any one else about develop
n,ents shaping up for presentation to the
Reparations Commission