The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-03
STOCKS ADVANCE
DESPITE REACTION :
IN EXCHANCEMART
Sensational Steel Rise in
First Hour Spreads
To Entire List.
SHORT LIST BUYS
Attempt TO Take Profits in
Afternoon Causes Forfeit
Ore of Some Gains.

NEW YORK. Dec. a-Despite a
reaction in foreign exchange. prices
moved upward in the stock market
today. An almost sensational rise
in all the steel shares during the
first hour spread TO one group after
another. taking in especially the
copper. motor. railroad equipment
and rubber stocks. IL was evident
that no small part Of the demand
was for the account OF disappointed
shorts. The upturn continued with
out material Interruption until the
afternoon. when an attempt TO re-
alize profits resulted in many cases
in the forfeiture OF half the early
gains. Railroad shares turned
very heavy. despite a general be-
lief that the labor groups affected
by the Railroad Labor Boards de-
cision on working rules would agree
TO the change. Call money re-
newed at S per cent
steeis Are Big Sensation.
The big sensation in todsys mar
ket was the rapid rise in steel
stocks during the early trading.
Evidence that there was a great
accumulation of buying orders on
brokers books before the market
opened was presented in the fact
that net gains on initial trausac-
tions ranged from y 20 full point.
Before the end OF the first hour
the period OF greatest appreciation
In this group. Republic had ad-
vanced 80 points. Lackawsnna a.
Midvale az. Vansdium IL. Bethle-
hem B Is. American Steel Foun-
dries, IN. Crucible Ia and Sl--S
Sheffield. 3iA. That the buying wa
due TO some factor other than the
proposed merger OF seven is sue-
gested by the fact that only the
first three stocks here mentioned
are participating in the neCotia-
tions. Short covering OF the most
urgent nature was credited with
being the cause 81 the rise The
only news overnight on the MERGE
project was a statement bv Thomas
l. Chadbourne confirming the report
that the companies mentioned are
working on a plan for consolida-
tion. Dispatches from Pittsburgh
state that the merger will be an
accomplished fact within few
months.
Mercantile Marine.
A further rise OF IL points ~
Mercantile Marine preferred today
Intensified interest in several Sto-
ries circulated yesterday afternoon
as possible motives for the quicken
ing demand for this stock. There.
was a report that the Mercantile
Marine would seek to transfer it,
ships from British to American ro--
istry II Congress had acted favor
ably on the suggestion OF a subsidy
to American ships Persons cor
verssnt with shipping affairs point
out that the main body OF the r7.T.
camille tonnage fyinE the Brit ~r
flag is included in the White STA
Line. which is manage by 'r#
per cent British board OF direrfHr-
who would have the hnal word r
any proposition 10 change the N-s-
flag. The story which attracts No.
attention goes into the NercarE. g.
Marines latest balance sheet al
points out that the item % s.
100000 receivable consists er-s-
sively OF debts owed by the gov
eminent to the company. Il Sc
eests that a settlement OF this DO ne
would enable the company TO -z-
of some n the - per cent % de-
ferred dividends due on the pre-
ferred stock.
The reason for the apparent Lac
OF response by TIE Sears. Roeh-rS
stocks to the declaration OF a res
ulsr dividend on the preferred late
yesterday was plain enough whl r
the recovery in yesterdays mark.-
was considered The preferred sold
as low as SIS early this week. att
closed at SO YESTERDAY