The New York herald., 1921-02-25
FINANCIAL NEWS
AND COMMENT
Pressure on Industrial Stocks
COntinues-Exchanges Re-
act, Led by Sterling.

Factors working for the decline of
stocks were still In the foreground yes
terday and sales for the short account
affected more of the Industrial issues
than in earlier days OF the week. II in
natural for bear period 10 be cumula
tive in its results, and at this time the
confidence of sellers has been strength
ened by the appearance of unfavorable
Industrial events day after day Thus
pressure against the rubber issues was
increased yesterday by the passing Of
the Ajax Rubber Company's dividend.
Texas Company shares were forced
down on news OF an increase of 10 per
cent. in the issued capital stock TO be
made shortly, which, while fully in ac-
cord with the corporations policy of
capitalizing business and asset expan-
sion from time to time, was used as a
bearish argument, nevertheless. because
It would expand the number of shares In
the market. Chemical company shares
were depressed as the outlook for fer
tilizer sales this spring was reviewed in
the market gossip, and discussion OF the
slack copper market found reflection In
the copper stocks,
II becomes more puzzling as time
passes why the shares OF many produc-
ing companies should have displayed
pronounced weakness this week. The
facts of dull business and prospects OF
further contraction before real better
ment occurred were fully In evidence
known and anticipated In November and
December that stocks then passed
through reaction comparable only to
experiences In times of panic. In the
slump Of early winter. also forced cell
ing for the purpose OF raising cash
seemed to have been completed: the
liquidation OF inventories and retirement
OF bank loans since that period has
betohencd an easier situation for in
dIvidual and corporate holders Of securi-
ties. But now. when the stock market
might be expected to begin the discount
ing of moderate improvement OF business
in certain lines. there has been a re
sumption of selling. not on large scale
but insistent among the issues especially
selected That an extensive bear party
has been at work has been disclosed by
the Atlantic. Gulf and West Indies stock
episode and also by the quick :.ccelera-
tion of sales of other shares when atten-
tion has been called TO them by records
of last years earnings or sluggish plant
operation so far this year. IF It is the
fact that professional attention has
than mixture Of short sales with con-
siderable liquidation. market history
shows that market recoveries will come
along in due course.
days recession, with declines running
from / point to more than points. in
cluded Allied Chemical. American Agri-
cultural Chemical. International Paper,
Kelly-Springheld Tire. Sears-Roebuck &
Co. Texas Company and United States
Rubber The list suggests In the light
OF what Is known OF inventories and
general business prospects. that such
issues would he ones 70 yield under per-
sistent sales. The railroad department
lost ground, but again the steel stocks
were decidedly more steady than other
groups The bond market eased OFF,
without. however. presenting signs OF
important sales. Call money remained
at per cent 1t is likely that the
slowing down Of the demand for bonds
is having some effect upon the locai
money market. causing the demand for
temporary accommodation to remain
large, as portions OF the recent output
Of new bonds and notes are carried until
distributed.
Sterling led rather sharp reaction Of
the foreign exchanges receding more
than IL cents. The exchange market
doubtless Is In an uncertain state on
both sides Of the ocean because Of the
coming conference on the German rep
aratlon Cotton and grain were weak,
March cotton getting we'll below 10
cents pound.