The New York herald., 1921-08-25
FINANCIAL NEWS
AND COMMENT
Price Weakness in Stock Mar
ket Widens-Decline Hits
Rails Hardest.

Price weakness spread yesterday Into
on Tuesday, but it was again the rail
road group which received most atten-
tion from partisans OF the fall of quota
tions. The Street was puzzled over the
puzzled than it was before, because. with
the railway outlook improving through
economies of operation and expectation
of an increase of their cash through
pending legislation. the situation Of the
shares had seemed to be stronger this
month than 1t had been at any time this
year. Evidently two major factors have
been assisting the decline. The first Is
the tendency Of all stocks to lose ground
when depression has been recorded for
weeks on end in particular depart
ment. and the second Is doubt about the
permanency OF certain dividends. In
view OF the fact that the last Northern
Pacific dividend was taken from sur
plus it is not difficult for the market
In its present mood to make conjectures
about action on the next quarters dis
bursement. Stock of that road led yes
terday's decline, receding 2 points and
carrying with 1t Great Northern pre-
ferred to the extent OF 1A points. Bal
timore and Ohio. st. Paul, Kansas City
Southern and Rock Island preferred
stocks lost a point or more, and sizeable
fractional recessions occurred among
others.
The industrial shares. which had been
fading away before the rails began to
slip this week. drew into their ranks
several mining and oil issues. 1t has
required no great amount of pressure
TO unsettle mining stocks OF late, as the
sluggish condition of the mining indus
try IS plain to all who have examined
recent reports OF producing compan es
state OF demand at home and abroad.
Steel shares were steadier than were
most others in yesterdays transactions,
despite definite news that the Steel
Corporation continued to mark its prices
down to conform to those OF its COM
petitors. The fact that here and there
steel quotations are being shaded as
producers strive for business Is inter-
esting against the Background OF trade
news. The Iron A ge reports indications
of slowly expanding demand for certain
forms OF steel. although the industry
has not acquired confidence that autumn
will see a genuine revival OF buying.
The combination of easing prices and a
creeping growth OF purchasing suggests
that the time when real stability will
appear In the trade is drawing near, and
when 1t does arrive. 1t is reasonable to
assume. reduced warehouse stocks which
are reported from many sections of the
country will stimulate orders.
The financial markets had very little
outside news and few events OF impor-
tance to shape the course OF prices
In foreign exchanges business was en-
livened by a moderate increase OF deal
ings in sterling. buying of that exchange
being sufficient to carry 1t upward "a
cents. Other exchanges were firm and
duh 1t is possible that spectators have
become convinced that the German rep
arations payments due by the end of
this month have been arranged for an
are covering short sales made in recent
weeks when 1t was thought that pres
sure similar to that which disturbed
the market in May would come on ster-
ling and other exchanges through Ger
man operations.
Cotton recovered Tuesdays recessions
with a margin over. buying In the after
noon being large after reports of ex-
tensive damage to the growing crop In
eastern sections OF the Cotton Belt were
received. Grain prices were 8 ready.
Call money was considerably easier
than 1t was on Tuesday, although it's
rate on the New York Stock Exchange
stayed at 5h per cent. Funds were OBJ
tainable In moderate amounts In the
open market at and AZ per cent.