Evening star., 1921-08-18
STOCKS ARE DULL
At Lower PRICES
Motors and Sugars Are Un'
der Observation-Disclosures
in Script-Notes.
BY STUART r. WEST.

NEW YORK, August ls.-Today's
variations in the markets were gem
orally uninteresting. were attended
with very small business and alto
gether were of slight significance.
Exchange rates on London. Paris
and other centers outside of Germany
came back over the ground lost yes
terday. German marks. helped by the
closing of the Berlin bourse and the
consequent check upon the heavy
speculation in exchange as we'll as III
securities, continued their recovery.
Stocks for the most part were in
tensely dull, with Il disposition. how
ever. to offer resistance to the un-
covering of two or three weak points.
About the only development of con-
sequence occurred IN the bond mar
ket. which. although not much more
active. was distinctly stronger all
around.
1t looked. in fact. as if the upward
movement which was checked a fort
night ago. when call money suddenly
went up from Az to s per cent, and
time funds from 5a4 to 6A. might be
in course of resumption.
Helped by Lower Rates.
The idea that bond prices had
started to work higher again was
sufficiently we'll founded in the. re-
turn OF the time money market and
the mercantile paper market to sub
stantially the same position as two
weeks ago.
Willie there were no transactions
in time loans recorded below s per
cent, the offerings at this figure were
large enough to suggest that lenders
again it would be quite logical to ex-
pect that the bond market would
begin TO get ready for the further
lowering of federal income rates.
which is confidently looked for unless
there should be some surprising re-
versal in the tendency toward piling
up the surplus bank reserves.
- Motors and Sugars Sold.
There was rather q sharp selling
movement early in the day in the
motor stocks and in some of the su-
gars. Recent happenings In the raw
sugar market have been a good deal
of a disappointment. At the close Of
last month 1t looked as if the i'm
proved demand for refined sugar
would force the manufacturers to buy
freely from the Cuban commission.
and thus allow the Cuban sugar COM
panies. even IL they could not get out
without loss. to liquidate their bank
loans.
But the situation. which looked so
promising for several days. has paled
again. The demand for refined sugar
has again fallen off. and .he cuua
COMMISSION is doing little or no buSi-
ness. There is still fair ground for
hope that things will pick up again.
but the decline in the sugar stocks
evidently reflected the closing out of
speculative commitments made three
weeks ago on what now appear to
have been too optimistic calculation.
Overnight announcement that New
York Air Brake directors had voted to
declare the quarterly dividend at the
rate of per cent in scrip was inter-
preted as more favorable action than
anticipated. With the stock breaking
as 1t did yesterday. the street was
rather looking for distribution to be
left off altogether. The stock did not
open for over an hour after business
began this morning. Then it sold .
points up.
Motor Shares Decline.
Weakness cropped out in the motor
shares soon after the beginning of
business. Chandler was carried down
TO new low and Studebaker and
Pierce Arrow were heavily sold. The
street is still skeptical about the
Chandler dividend despite the assur-
ances, given some time ago. that there
was no reason to anticipate any fur
ther change in dividend policy
WIN Stuuepaker IL Is a case where
even the highly favorable statement
for the first six months of the year
was oyerplayed, considering the un-
favorable conditions in the market
as a whole. Studebaker's profits will
naturally fall off during the current
six months: still. whatever happens
the showing for the year will be q
good one and will make certain the
continuance of the per cent divi-
dend.
When the Studebaker bull move
was on a month ago. lot Of outside
stock was bought on the theory that
the Durant interests wanted to see
the price go way up. The outsiders
no bought above 80 may have got
ten their stock from the inside. At
all events. the market position was
weakened by distribution which went
on at this time. and the subsequent
decline which carried the price down
below 40 today was the result.