Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-04
RALLIES MADE ON
SHORT COVERING.
Dividend Omissions and Reduc-
tons Emphasize the Unsatis-
factory Industrial Conditions

New York. June 4.-Week- end
evening up of the professional traders
gave the closing stock market today
better tone and likewise brought sub
stantial recovery in prices in most OF
the activs stocks. Apart from the COW
cring of the shorts, there was little life
to the dealings, and when the former
demands were satisfied the trading be.
came dull and>flat. Some of the issues
which had been under noticeable pres
sure in the preceding sessions made the
largest gains The railroad shares.
however, were the firmer spots. and II
was the strength of the southern ronds
at the outset which practically supplied
the incentive for the subsequent rallies.
The market did not 60 the one way
BY any means, as quite a number of soft
spots cropped out in different parts of
the list, the more vulnerable being
found in the lesser oil company shares
and also in the foreign oils. The market
was governed solely by technical influ-
cnces rather than by outside develop
ments. Little attention was paid TO the
foreign news, which was anything but
promising. including the walkout of the
Manchester cotton mill spnners and
the stubborn attitude of the coal min
trs. These unsettlipg industrial events
found reflection in weakness of the for
eign exchange market, especially ster-
ling.
The weeks market proved to be hard
Shedding for all those pledged to or ta-
voring the constructive side. Between
dividend chils. tight money and null
tiplying adverse developments IN the
industrial situation, the reactionists
experienced little trouble in marking
down prices as they willed. AS mat
ter of fact. the seeming vulnerable po-
sition of the general list was quite sur
prising. On the other hand, 1t was
obvious to every experienced observer
that had il not been for the market
thoroughly liquidated condition the
weeks crumbling of prices would pos
sibly have reached much more serious
proportions. AS it was, new low prices
for the year were not only made by
number of the industrial specialties, but
in many instances the lowest quotations
reached in many years were recorded.
This fresh weakening of the specula-
tive superstructure of the market was
difficult to reconcile with the unmistak-
able progressive improvement in the
economical situation. Besides. it was
productive of growing concern as to
whether it would not be found impera-
tive to apply still more drastic meas
ureS in the deflation process before the
general business and financial situation
could be restored anything near nor
NAL equilibrium. These fears undOubt-
cdly are prompted because of the omis-
sions and reductions of dividends by so
many of the prominent industrial con-
Germs, together with similar policies
which n number of the railroads found
it necessary to adopt. Because of the
forced necessity to conserve all avail
able resources to meet the current press
ing needs, it is thought by some OBJ
servers this policy may extend to COM
pulsOry liquidation of securities and
other available liquid assets. 1t is cer-
tain, in all events, because of the fail
ure of the expected business revival to
materialize, which seemed possible in
the early part of the spring. practically
all the leading industrial interests have
been compelled to institute prompt and
drastic alterations in their plans. In
other words, while the fundamental and
economic situation has been transferred
from a chaotic to more comfortable
position. the industrial and business
situation has gone from bad to worse.
The extreme pessimism which seemingly
pervades all quarters, however, may,
after ALL be real stepping stone to a
permanent turning point. 1t is always
the darkest before dawn and. as was
experienced in other periods of depres-
sion, the change for the better may
come suddenly like bolt from the clear
blue