The New York herald., 1921-12-22
FINANCIAL NEWS
AND COMMENT
Stocks React When Pressure Is
Put on Industrials-0ther
Markets Unaffected.

The long predicted reaction of stocks
occurred yesterday and as soon as the
| tendency OF prices of oil, steel, copper
and other industrial shares was seen
to be toward lower levels professional
short sellers took hand. They had
little 10 work with as far as outside
events were concerned. The other
markets were not affected by the reces-
sion of stocks. In fact. wheat futures
advanced cents a bushel, showing the
first appearance of strength this week
while cotton was steady and foreign
exchanges generally firm. News from
the steel trade. although noting that
plant operation had declined from SO to
As per cent of capacity in the Pitts
| burgh district in the case of the
United States Steel Corporations mills,
made the point that the weeks slowing
down was not disappointing to pro-
ducers. Steel makers. 1t is evldent--and
has been for considerable time-are
counting more on improved conditions
after January 1 than on current opera
tions. because they have knowledge of
depleted supplies which will require ex-
pansion a little later on. Call money
eased to 51a per cent. after opening at
per cent.
The decline Of stocks was substantial
among the petroleum group. reaching 2
and points in certain issues. Through
out the active speculative list, as
whole. recessions Of a point were nu-
merous. but weakness was most notice.
able in issues which had enjoyed ad-
vances of 8 to 10 points in the last six
weeks. That fact moved the Street to
describe the reaction as one brought
about chiefly by technical influences
and ii was impossible to draw conclu-
sions as to the course of quota tions In
the next few days from developments
in yesterdays market. Atchison. South
ern Pacific. Union Pacific and a few
other rails declined a point but rail-
road stocks generally gave little ground.
The season when production OF many
kinds of goods is curtailed by annual
inventory taking has arrived. Possibly
traders in stocks took that fact into ac-
count in staging yesterdays broad pres
sure against Industrial shares 1t is
probable that from now until the end Of
the year there will be daily discussion
OF seasonal plant shutdowns. and the
marketplace. If precedent counts for
anything, will hear exaggerated reports
about declining orders and prospects of
slow business when work shall be
started. The steel industry enters the
inventorying period with many prospec-
tive buyers in an uncertain state of
mind about the freight rate outlook.
hesitating to close orders for fear that
II freight rates be cut they will find that
they might have obtained better prices
for sizable railroad orders. which can
not be held back much longer. The Iron
Age reports steel fabricators active. due
to several large building projects.
The output of new securities continued
yesterday at a pace which showed that
industrial corporations were anxious 20
get into a strong position in respect to
working capital before the end OF the
year. There were also in borrowing an
nounced as fully or partially arranged
indications that an urge to reduce bank
loans was factor in the situation.
Bonds on the New York Stock Exchange
were somewhat irregular. most Liberty
issues losing ground. but It had been
clear for several days that an easing
tendency among securities. which ad-
vanced extensively In the last four
months, had no effect in reducing public
interest In new offerings