Evening star., 1921-08-04
STOCKS ARE FIRM;
TRADING IS DULL
Outstanding Feature of Day
Is Strength of Foreign
Exchange.
BY STUART p. WEST.

of yesterdays trading. Nor ola II
exhibit any sign OF continuing lne
advance except in a few cases where
the short interest gave indication or
nervousness from which. judging
from records of the recent past, the
shorts will recover soon Ihls IN
dication was noticeable In the motor
stocks. where there was some run
ming to cover.
The rails gave a very good ac-
count of themselves considering the
advance they have enjoyed anu the
consequent profit taking. Fluctua-
tions in the industrials were mostly
meaningless. and trading was pure y
professional, and on very small
scale.
Deyelopments Confusing.
Developments in the commodity and
commercial markets were contradlc-
tory and confusing Indications pms were G
provement in the steel trade Both
birmingham and Youngstown sent
more cheerful reports. Exports of
iron and steel were greater in June
than in the preceding month.
A sale of a million pounds Of cop
per was reported at the lowest price
reached on this movement for any
substantial amount Meanwhile, the
surplus is steadily melting away. AS
long as consumption continues to ex-
coed production, price concessions are
not SO important.
Little Change in Sugar.
Re-entering the sugar market. the
large refining interest which has
been so "beariSh" on prices. named a
figure above that prevailing when 1T
retired two weeks ago, but less than
recent quotations by Its competitors
Raw sugar showed little change. Beet
sugar manufacturers in the west re-
ported operations at loss at the
current price for the refined. Con-
fidence was expressed on a strength
ening of the demand.
About the only deduction which
could be drawn was that the time
was rapidly approaching when the
actual necessities of the population
must stimulate productive activity.
But If the quotation makers realize
this there was little evidence OF 1t
today.
Steels Are Inactive.
Steel stocks were first heavy, then
firm, but inactive. For the day at least
the bear element was not SO sure
that present prices for stocks in TINS
group, and especially for the leader
thereof, had not discounted the trade
depression. actual and prospective.
Copper shares were almost entirely
neglected and the sugars were more con-
cerned over the past than the future.
Cotton opened firm with the south, as
usual, lately an active seller. but the
cfferings were easily absorbed, ''bullish"'
crop news and strength in Liverpool
being the determining factors. 1t is not
believed there will be any real shortage
Of cotton.
The stocks on hand will take care
Of that. but that does not necessarily
mean there will be no higher prices.
Grains Are Heavy.
Grains were heavy at the opening,
wheat, corn and oats all being lower.
Western Canada reported the out
look for a crop as good as, OF slight
ly better than, the average. There
were further complaints about the
shortage Of cars from the southwest.
Railroads in this section are doing
good business.
Perhaps the outstanding feature of
the day was the strength of foreign
exchange for the first time. Sterling
cables got up to 3.5S4s, against
3.56A yesterday; francs were 7.T2h.
against 1856: lire were 4.25h. against
4.21. and marks were unchanged at
1924.
Motor shorts Hustle.
When the word was circulated be-
fore the opening that the interests
which had marked up Studebaker to
around SO were on the market on the
buying side at the close yesterday
to cover their commitments in both
Studebaker and Chandler. The buy
ing in Studebaker yesterday was the
first of its kind that had been noted
in weeks. Studebaker never did re-
spond to the very favorable six
pany, and for this reason the bear
party trained its guns on 1t. One
house alone was known to be lend
ing 10000 shares of Chandler this
morning, and it can be seen from
this that the short interest in this
lrr TkaN
tivity in the motor group furnished
the feature of the days trading.
VfvaudOu Attracts.
There was some activity in vivaudou
at rising prices on advance knowl-
edge of what the company would
show in its fiscal year, which ends
September I. 1t was learned today
that the company has has Saa cash n,1 on hand ID
100000 above last September. while
accounts receivable are about $500, 900.
compared with s1.000,O00 ten months
ago. Inventory has been reduced
about half of what it was at the be
the fact that inventory as of January
represented finished stock and re-
placement of raw materials has not.
yet become necessary.
The year will also show that ae-
counts payable are only $4,000, which
compares with ss5O,0 at the close of
the last fiscal year.
American Car and Foundry Busy.
The recent announcement that Or
ders for repairs to about 5000 cars
have been distributed by the railroads
is taken to mean that American Car
and Foundry is getting all the busi-
ness of this nature that it cares to
handle. In it's report made public re-
Gently this company showed that it
had s30.O00.000 of forward business on
it's books as of May l, the start of it's
new fiscal year. 1t is estimated that
from this business alone the company
should have little difficulty earning
more than enough to pay it's 12 per
cent dividend on the common stock,
and this without taking into consid-
Grafton the profits from the repair and
other work in which the company is
now engaged.
Taking into consideration the con-
dition in the railroad industry, it is
felt in certain quarters that Chicago,
Rock Island and Pacific. with nothing
more than the normal seasonal in
crease in traffic, should fully earn it's
preferred dividends this year. Any
increase in earnings following gen.
eral business recovery would be avail
able for the common.
The advance in the exchanges was
maintained during the afternoon, The
explanation generally offered was that
of a natural reaction from recent
weakness, although some authorities
thought they saw a connection with
the Russian situation. Obviously a
clearing up of the tangIe in that un-
happy. and sore beset country, with
the restoration of a stable govern
ment. willing to do business with the
rest of the world on the basis of
the established economic order, would
work a recuperative miracle in all
Europe.