Evening star., 1921-07-20
SOME SECURITIES
ARE FAIRLY FIRM
Leathers, WooIen and Rub
ber Shares More Steady.
The Exchange Situation.
BY STUART p. WEST.

NEW YORK, July 20.-The only
difference between today's stock mar
ket and most recent sessions was that
on the buying side. This did not lead
to anything like a general forward
movement. Operations for the rise.
such as they were, were confined to
a dozen or so stocks OF companies
which have turned the corner in their
trade situation and are beginning to
make money again.
Among these were the leather ana
boot and shoe group. American Woolen
and the rubber shares. Business with
the equipment companies has not
changed, but 1t is expected to after
the government project for FUNDING
the claims against the railroads and
paying the half billion dollars into the
railroad treasures, as the remainder
of the guaranty obligations. has been
put through. Consequently the equip
ment shares. especially Baldwin Loco
motive and American Locomotive,
were included in the category OF those
whose business outlook has bright
ened.
Movement II sluggish.
But while stocks in this class gave
evidence Of a sold-out condition and a
certain amount of initiative toward
higher prices, the general movement
was extremely sluggish.
Short covering went on IN oesui-
tory way for the first hour or so.
Then it stopped. and as soon as the
demand to retire short contracts was
over the advance halted and prices
sagged off again. with some 1resh
selling in the motors and one or two
other quarters.
Foreign exchange. after yesterdays
recovery. started down again. but
there was no repetition OF the severe
declines of recent weeks. The point
was made a few days ago that while
it was hard to set limits upon the
downward movement. where German
bidding for dollars was such factor.
rates might conceivably get low
enough to discourage the conversion
of sterling and francs into dollar ex-
change, because it involved too mucn
Of a sacrifice to sellers OF the former.
There have now appeared some tnd1-
cations that a stage like this has been
approached. the most significant OF
these being that the bulk OF the third
lreparations payment is to be made IN
lars The chief objection to using
sterling and francs as a medium for
payment has been that their Value
was much more uncertain than ooi-
lars. but objection has been removed
by the decision of the British and
French banks to receive their cur
rencies at the prevailing market value
at the time of purchase, thus guard :
| ing against the possibility OF De.
probation between now and the end
Of August. when the last of the In
demnity money must be paid In. This
action is designed to steady the ex-
changes and ought to have that enect
were it not for the increasing pur-
| chases of Europe in our grain and
cotton markets.
American Ice.
This is the seasonal time for bull
| the increased activity in American
Ice today was a reminder OF this fact.
! There was no distribution of Ice COM
! mon on the recent dividend increase
and the stock bought In anticipation
! Of the dividend is still in the hands OF
| higher price level. What few offer
| ings of the preferred came on the
| market during the unsettlement Of
the last two months were readily
taken without the stock breaking So
At this figure the return Is 10 per
cent, and there are apparently plenty
Of investors who are willing to buy
at this attractive yield.
Pennsylvania II Tipped.
Whether Tip" on Pennsylvania could
mean anything or not, such thing has
come to pass, and In most quarters IN
Wall street there is much laughter.
Pennsylvania, which has been the bear
target in the rails for something like
\ two wears, is now being used to steady
the shares Of the carriers. and, says the
| Tip" it will participate in any advance
| in the rail group as whole.
Events Of a constructive nature are in
the making which will have a decidedly
| important bearing on the movement or
the shares Of equipment companies. The
equipments did a little better today In
anticipation of these developments. which
are connected with the projected advance
of S50O,OOO.OO0 to the railroads. 1t is
understood. that the equipment COM
strong railroads in exchange for in
renfories now carried on their books