Evening star., 1921-07-12
TRADING IS NARROW
I OILS ARE FEATURES
Short Covering in lndustriaIs
Is Main Influence in
Market.
BY STUART p. WEST.

BY STUART p. WEST.
NEW YORK, July 1:.-What little
interest there was in any Of the mar
kets today was confined to the ef-
forts of recent speculative sellers for
the decline to extricate themselves
from a position which had ceased to
look promising. Covering Of short
contracts in some Of the industrials
which have lately been under the
hammer was the main influence in
the stock market.
The same closing out of bear" op-
erations was q factor in the wheat
market Of the day. and 1t also figured
In another and quite unlocked for
German exchange. From their low Of
1.27 yesterday. marks recovered near
" 10 points. and the only explanation
apparent for this upturn was that
there had been too much selling for
short accounts under the impression
that no rally was possible while the
German banks continued to pour out
new paper currency issues.
Operators Intimidated.
On the stock exchange buying in
against short contracts carried stocks
like Harvester. international Paper.
Seass. Roebuck. Famous Players and
American Sugar up rapidly from two
to three points. The premium charged
on some OF these and other shares
for their use by short sellers had
evidently intimidated operators OF
this class.
Mexican Petroleum jumped four
points and other Mexican and South
American Oils two points or SO on the
letter Of President Harding to the
chairman of the ways and means COM
mittee, asking that the proposed tax
on crude oil imports be eliminated
from the new tariff bill. These gains
as short covering ceased, prices fell
away again. 1t was another exhibi-
ton of the extremely narrow and pro-
fessional character Of the present
trading.
Call Money UD.
The call money renewal was marked
up from 5h to 6 per cent, but 1t was
so well understood that this was due
to temporary causes that 1t had no
effect upon the business Of the day.
This Is the time of the year when the
large sums under the appropriation
act, and, in consequence, Is calling
heavily upon it's bank balances.
That there is no thought Of any
real hardening Of the money market
Is shown by the easier tendency In
commercial paper rates and by the re-
fusal Of borrowers Of time money to
bid more than 6 per cent for this sort
Of accommodation. A further indica-
ton Of banking judgment toward the
future course Of money rates 10 the
action Of the bond market. and here
there were no signs today Of any let
up in the buying movement which
began a week ago. New high prices
for the year were reached. especially
in some Of the recent issues, like
those of the Hill roads.
Firmness Of Coppers.
Firmness Of the copper group hal
or more. 1t is not that these stocks
have been going up, but that they
have ceased to como out while other
parts of the market have been going
down. The ordinary reading of this
is that copper shares have been sold
ing into the hands Of long-range buy
ers. Of people who do not see any.
thing Immediately in store. but who
believe that with supplies Of the cop
per metal steadily shrinking the way
they are: It cannot -bs.-4eng before
they feel, will be the signal for con.
sumerB to enter the market and fol
the mines to get ready to resume.
The situation in American Sugar
had not changed from what 1t was at
the close last night. when it was found
stock. It was said that 5000 shares
were still wanted at the opening. but
this was not borne out by later de.
velopments.
Leather stocks Strong.
All of the leather stocks were
strong under the lead of Endicott-
johnson. New orders OF this company
for the past two months have been
running Is to 50 per cent ahead OF
last year in actual pairs. A large pro-
portion Of these orders are for imme-
diate shipment. The factories are
running up to capacity and the output
is in the neighborhood of $4,000 pairs
Of shoes daily. In the case Of Amer
lean Hide and Leather 1t was pointed
out last week that this company will
show in its next quarterly report. due
the last week in July. that 1t has
turned the corner.
international Paper had as sharp a
run-up - anything. There has been
q heavy short interest in this stock
which based its attitude on the idea
that the paper industry has not yet
passed through It's readjustment and
that the labor troubles were cutting
severely lHtO pIouSc. 4ucEc was q
sudden reversal this morning when
word came that the company's mills
at Niagara Falls and Fall FLYER had
opened up on full time and that the
men were going back to work on a 81
per cent reduction OF wages.
OIL Tariff.
The street has figured right along
on the most energetic sort of oppo-
sition to the tariff on oil imports. But
1t had not reckoned upon the admin
istration taking a hand, As President
Harding did. in writing to the chair
man Of the ways and means commit
tee a letter Of protest. With this un-
expected support the market took the
view that the OIL tax was likely to
fail Of adoption and there was a rush
at the opening to buy the Mexican
issues and the South Americans.
Mexican Petroleum. Royal Dutch and
General Asphalt jumped. The bear
campaign in Asphalt has been based
upon the belief that an American
tariff on oil would compel the South
American companies to cut down their
development work and shut of at the
same time the big market for their
products The possibility Of this DO.
sttion being wrong caused q furry
among the Asphalt shorts. On the
other hand. the American oils were
not depressed :
COTTON MARKETS.
NEW YORK Julv 12-The COTTON