The Washington herald., 1921-05-07

stock market ran into the kind OF
profit taking that might be expect
ed after SO pronounced and pro-
longed an advance. For a time In
the early part of the session IL ap-
peared as IL stocks might continue
upward at a more moderate advance
Indeed, the list displayed come fur
ther remarkable gains, but they
were mostly In stocks of the class
called "specialties," or stocks which
are known to have Cor to have had)
strong professional backing. But
general selling of the standard in
dustrials began to make itself felt
by the end of the frst hour. and
continued with a short intermission
around midday. until the close,
Net losses OF a point or more were
numerous. The rails were not as
easily turned about as the indus
trials, yet they became reactionary
in the afternoon. Union Pacific
was q strong feature. United Re-
tail Stores, Mexican Petroleum, and
some of the minor oils were strong.
United Retail Stores stock was
run up quickly just before noon.
gaining almost two points and
reaching a position only fraction
ally below the years high price be-
fore meeting any profit taking. The
greater part OF this movement was
carried out after the United Cigar
Stores dividend was announced. pi-
rectors of the latter company voted
to pay dividend of per cent.
The stock received IL per cent in
January, 1k in February. / per
cent in March. and / per cent in
April. Inasmuch as United Retail
Stores dividends are paid out Of
dividend disbursements made by the
United Cigar Stores Company, IL
was easy to construct today's dec
laration into a bull argument for
stock OF the former. Retail Stores
sold as low as s2& on Tuesday OF
this week. At noon today IL was
selling at Ssk.
Since Monday there has been a
marked decrease in the number Of
traders attending personally to the
stock market commitments. Brok-
ers proclaim Enthusiastically that
the public is finally coming in. At
tendance in commission houses is
certainly much larger than il was
few days ago. Chairs in board
rooms were filled in most Of the big
houses today. and telephones were
busy. Wire houses report that their
out-of-town branches are respon-
Sibie for more buying orders than
at any time since the March move
ment
The percentage of business done
with OUT of town branches and cor
respondents was reported to be the
greatest in those New York houses
with strong Chicago connections.
Two weeks ago the Middle West
could see nothing but the dark side
Of things. Grains were reaching
new low market levels every day
and the steel mills around Chicago
were showing no signs OF a turn.
Since then the Steel Corporation has
lowered wages. faVorably affecting
sentiment. especially in the Chicago
district. The bullish market fac
tors which have been responsible
for the change of sentiment in this
center have applied with equal force
to the West. Chicago is reported to
be buying stocks. especially the
rails. That city is the hub Of the
grain regions. and grains have been
making a substantial recovery.
Reduction of the Atlanta Reserve
banks discount rate by a full point
to per cent is the more interest
ing in view of the fact that this
banks reserve ratio now stands at
46.2 per cent. At the time the Bos-
ton bank made a similar reduction
in its ratio it was close to - per
cent. while the New York bank
waited until its proportion Of re-
serve had risen to approximately 5s
per cent before dropping its rate
L point. This circumstance points
TO a considerable divergence Of pol-
icy as between the banks and en-
phasizes the fact that here, as in
England, the purpose behind the
lowering of rates is to decrease the
cost of doing business rather than
to find employment for anv large
surplus Of funds. The recent
changes also raise the question OF
how much longer the per cent rate