The Washington herald., 1921-06-12
STOCKS DISPLAY
ERRATIC LOSSES
NSHORT SESSION
Steadiness Prevails in
Numerous Prominent
Issues.
MEX. OILS PRESSED
Railway Stocks Comparatively
Quiet with Fractional Losses.
Foreign Exchange Quiet.

NEW YORK, June 11.-Further
weakness was displayed in the
stock market during today's short
session but the decline was car
ried out with great irregularity ad-
mitting Of steadiness in numerous
issues. The same tactics employed
by professional shorts earlier in the
week were again restricted to the
stocks Of oil companies interested
in Mexico being under the most
severe kind of pressure. American
oil stocks on the other hand. were
fairly steady. Losses of l and 2
points were numerous in the stand
ard issues while ill-favored special
ties inclined more sharply. Rail-
way issues were comparatively
quiet, moving fractionally under
yesterdays closing level Trading
was at the rate of approximately
1000. 900 shares for a five-hour day.
There was little business done in
the foreign exchange market and
rate changes were unimportant un-
til shortly before noon when sterl-
rates were practically unchanged
with the exception of German
marks which were in heavy supply
as low as 1.42 cents. There was
very little fiuctuation in the price
of wheat from yesterdays closing.
July futures sold of Il cent at
1.35L and September wheat was
slightly higher at 1.1S&. A narrow
market prevailed in cotton with
local Wall street and Liverpool buy
ing showing some indication of an
expectation Of the resumption of
work in the British coal mines, the
prices being from 1 to 4 points up
on the days trading.
weakness During Past Week.
The past week has also been
notable for pronounced and persist
ent weakness in stocks. many new
lows for the year being made and
many of the leading issues selling
down close to the low records of
1920. with some, in fact. falling be-
low the latter. The markets be-
havior plainly has reflected the
passing and reduction of numerous
dividends and the more pessimistic
view regarding the industrial out
look which has followed the col
lapse of the bull movement worked
upon the basis of the slight quick
ening in certain lines of trade
which occurred this spring: Funda-
mentally. very little change has oc-
Cured in the Industrial situation
and outlook. Most businesses are
either in a distinctly depressed con-
dition or are running at consider
able less than capacity and on a
very narrow margin of profit Moth
ing like a boom in buying Is, fur
thermore, in prospect. The textile
industry continues to do a some
what better business while the
steel and automobile Industries still
sag. and rather expect to continue
to do so for several months, to say
the least. World trade conditions,
in addition. even though political
developments are favorable, show
very little improvement. Pessi-
mistic sentiment has grown rapidly
under such circumstances. fully as
rapidly. in fact, as did the optimis-
tic view during the spring months
Economic Outlook.
II would be foolish to pretend
that the economic outlook is bright.
The whole world has been thrown
into an unprecedented depression.
readjustment Is slow, and time and
patience are required to recover the
prosperity that was. One fresh and
powerful factor is, however. about
TO be injected into our domestic
situation The new crops are be-
ginning to be harvested. Wheat
prices have, furthermore. rallied, up
well. and the present level permits
the farmer to materially better his
position Ultimately his receipts
from the new crop will be mani
tested in Liquidation of bank loans
and increased purchasing of manu-
factured goods. When the manu-
featuring and commercial centers
begin to feel the effects Of this bet
ter buying a moro optimistic feel
ing will return and probably will
have its effect on security prices.
Such Is the usual trend of events
and there Is no reason to doubt
that similar changes will occur this