Evening star., 1921-08-29
new YORK STOCKS
GENERALLY. FIRM
ny q. r. WEST.

NEW YORK. August 2s.-The main
explanation for todays continued re-
covery on the stock exchange lay In
the overflow condition Of tho market
itself and In the fact, which has be-
como more and moro plain all the
time. that operations for the decline
during the last three months in many
instances have been altogether exces-
sive and unwarranted.
| A more hopeful feeling was reflected
regarding the business outlook.
This did not mean any great amount
Of confidence that the situation in
general was about to turn in any pro-
nounced way.
What it did signify was . greater
degree Of assurance that the improve
ment reported in certain lines Of trade
that eventually other industries would
fall into line.
This view was greatly encouraged
by the rise In the cotton market.
which kept on today. With cotton
up overs4 cents a pound. as COM
pared with the low of June. there Is
definite prospect 0f nquidation OF
least partial restoration of buying
power in the southern states. The
cotton goods trade, and with it the
entire textile industry Of Nav Eng
land. is doing an excellent business,
and now that wages have been ad-
justed 10 making . normal margin OF
proht.
Reduce OPERATING Expenses.
Railway traffic statements. while
oh two {va tn ap in
revenue. as compared with the pre-
ceding month. do show that operating
expenses have beeL reduced sufficient
ly to mako the great majority OF divi-
dends reasonably safe.
The reasoning IL not illogical, that.
II the textile and transportation indus
| tries. which were certainly hit as
badly as any. within q half year could
pull UP the way they have. another
six months might we'll see a similar
recovery In steel and other lines, in
| which the depression 10 still pretty
severe.
The new Notwithstanding plan Of
the General Electric Company. which
did away with all doubt about the
maintenance Of the stock dividend.
| and. at the same time, established the
fact that this years business will be
sufficient to cover all dividend re-
Quirements. helped materially.
Another was the United States
Rubber report for the half year, pub
| lished just after the close on Satur-
day. which, although 1t showed a
heavy deficit and was unsatisfactory
inventory and bank loans, still indi-
1 Gated that the business OF the COM
pany had seen its worst.
Rubber shares were rather tardy In
| their recovery, but General Electric
was one Of the leaders from the start,
and the punishment inflicted upon the
short interest In this stock had q
very important effect in intimidating
short sellers elsewhere. There was
further active recovery all along the
line. but especially in the more high
ly speculative issues.
InterborouSh Securities Weak.
The application for the INTERIOR
| ough Rapid Transit receivership
caused a violent break in the securi.
little effect otherwise. Word that
| the party of American oil men had ar
| rived in Mexico City for the confer
| ence regarding the export oil tax waf
the signal for . sharp run up in the
Mexican oil and related shares. =
| strength of the July reports, which
| were especially favorable in the case
| of the Chesapeake and Ohio, the Bal.
| timore and Ohio and the st. Paul.
Equipment stocks were in demand
| Steel common had the distinction-
| quite remarkable In times like these
| of promptly recovering the qual ter
! ly dividend. which came OF the price
| Of the stock this morning.
! U. 3. Rubber Showing.
] Wall street was at q loss Just how
to take the United States Rubber
statement for the six months. Inas-
much as it had been looking for a
I Lott
;s.ooo.ooo. the total of $4.s75.ooo
actually shown seemed quite BIZ
better than anticipated.
But the discrepancy was due to the
! advance estimates figuring on divi.
| dend deductions. whereas the state.
| dends.
The president indicates some i'm
provement in business and dwelt upor
; the fact that earnings for the second
half year will get the benefit Of sales
efforts the expenses Of which were
Also on account of reduced wages and
raw material prices. cost Of operation
I will be less.
But the ofiicial report. while 1t says
that the loss on such inventory as
was worked UP during the period had
much the $123.6oo,000 inventory OF
December 81. 1920. has been reduced
Neither 10 anything said about the
! status Of bank loans
At the nrse Of the year there was an
entirely new item Of SO. 100000 loans
and notes payable. making, with ac-
ceptances and accounts payable. total
floating obligations Of over 3e7,000,-
900. Without information on these
| essential points It 10 impossible to
| know what the exact financial posi-
| ton Of United States Rubber is, and
therefore what its securities can fair
| ly be valued at