The New York herald., 1921-07-07
FINANCIAL NEWS
AND COMMENT
Rally of Stocks Is Sharp and
Well Held-Mex. Pete Re-
covers 10 Points.

The sharp and well sustained rally IN
stocks yesterday supplied a somewhat
striking illustration OF the way the short
interest IS sent scrambling once a de-
gree OF confidence in prices is restored
and offerings OF shares are withheld
from the market The advance Of 2 to
10 points suggested that while many
speculators for the fall were Influenced
by Mexican news and other factors to
pyramid their short sales during the last
week or ten days. some well balanced
! investors and traders were accumulat-
| ing leading rails and seasoned indus
| trial issues. Efforts on the short side
were continued for a half hour at the
start of business yesterday morning.
with the result of carrying Mexican Pc
| troleum to a new low record at S7A.
but as soon as pressure relaxed the
character of the market changed abb
ruptly. Those who wanted stocks had
to bid briskly for them and the scarcity
became more and more pronounced as
time passed.
The stock market was the outstand-
ing feature of the days financial busi-
ness. AS the downward course of quo
tations reflected during June a process
sion of unfavorable Industrial news and
events. Just so yesterdays upturn indi-
Gated relief over latest occurrences. The
railroad share list reflected confidence
that the referendum proposed by rail-
way union leaders in regard to wage
cuts and the readjustment of pay sched-
ules would not result In strike Rail
stocks furthermore, were helped for
ward. as they had been in the preceding
net earnings as the crops go to market
and operating economies are made effec-
tive. Such net gains as Az points in
Canadian Pacific, 4 S points in Great
ern Pacific. 2A points in Reading and
points In Union Pacific are indicative
OF constructive forces at work under the
surface of railway affairs, all of which
dkO liOS 0AoSCi AioAo dI lllAS llliic. AT Ill6lT
best prices those shares were 4% to ~
points above their lowest prices of last
week
| Whatever uncertainty there was In
the market on Tuesday about the down.
ward trend Of steel prices was dispelled
over night by comment from the trade.
The Street inferred that the companies
were out for business and that prices
and costs would henceforth be shaped as
far as possible to the end Of attracting
consumers whose attitude toward the
steel market has been made clear
enough by sluggish buying since March
1. The formal announcement by the
Steel Corporation after the close Of busi-
ness that prices of a lengthy list of
products had been reduced to "corre-
spond with the existing prices of COM
petitors" indicated that the largest single
producer was going after orders ag-
gressively. An offset to price concessions
is to be made in the elimination of the
payment Of time and a half for overtime
work after July Is.
The steel and iron industry Is looking
upward from the depth Of greatest de-
preston since the panic period of 1907.
The Iron Age reported yesterday that
pig iron production in June was smaller
than 1t was in any month since January.
1908. when manufacturing capacity was
about half as great as It is to-day. The
daily output was 35.494 tons and con-
trasted with ss.Ss4 tons in May. and
there was net loss of fourteen In the
number of active furnaces during the
month The first six months has brought
not much more than so per cent of the
production of the first half Of last year.
The forward leap of 10 points by
Mexican Petroleum and extensive gains
Of stocks Of other companies. properties
Of which are outside the country. was
explained in part by the fact of an over
crowded short interest and also by more
confident expectations that proposed tar
IF plans would be modified.
Call money renewed at 5h per cent
The foreign exchanges worked lower. due
mainly to the normal summer expansion
of grain and cotton bills.
"