The Washington herald., 1921-09-08
TMELYWALL LSTREETTOPICS

country as a whole could be pro-
nounced as improved. No one In
Wall Street has ventured the opin-
ION that the rise In cotton has been
primarily responsible for the inn
proved sentiment in speculative cir
cles, but all observers agree that u
has been a great contributing fac
tor.
Certain market observers must
have reason for everything. In a
market which 10 advancing for some
general reasons, they feel called
upon TO Justify the movement OF
particular groups when the general
motives themselves would be suffi-
Client. The rise in Southern Rail-
way, Seaboard Air Line and other
railroads operating. in the cotton
belt has been linked up with. the
rise In cotton prices. II there had
been any doubt about the entire
cotton crop being moved, and IL the
rise In cotton prices were due
to causes which have removed
that doubt. then there might be
some logic in the argument for
higher Southern railroad stock
prices. But, as a matter OF fact,
this years cotton crop is expected
10 be smaller than any since 1892
which means that railroads operat
ing In The cotton belt will have as
small volume OF freight to carry,
The freight rate on cotton, more
over, is not regulated by the price
at which cotton sells in New York
or at any OF the other seaports. As
far as the railroads are concerned
IL makes no difference directly
whether cotton is worth l2 cents
or % cents. The only logical argu-
ment that can be drawn from the
rise in cotton is a general one ap.
plying to Southern industries a,
well as railroads. line OF reason.
ing predicted on the general revival
which a bigger profit on cottor
would bring to the South.
Being in a more cheerful frame OF
mind, Wall Street is able TO sens,
something favorably significant ir
Judge r. II. Gary's trip to Mexico
The Street recalled the recent visit
Of Baldwin Locomotive representa-.
tives to that country. resulting In
the completion Of financial arrange
ments whereby equipment for tn,
modern railways will be built in
the Baldwin plants. The memory OF
the deliberations between the oil
presidents and Mexican officials i,
still fresh. il is generally believec
that Judge Gary will bring bach
some steel orders. No one pretend.
that a country like Mexico could
furnish tn" necessary impetus for a
boom in the steel trade, but il is be-
lieved that whatever business the
head Of the steel corporation is able
to secure will help fiji the gap un.
til real demand springs up in this
country.
A noteworthy sign Of the times is
/ III. profusion of tips" that are be.
ing handed out free of charge in
the speculative community these
days. An even more readable sign
< the Willingness Of traders TO give
patient ear to the various bits
Of advice. Throughout the trading
district there is an air Of eNpec-
! fancy. Those who give credence IL
the story that the bigger bears
have switched to the constructive
side Of the market expect that The
iirst item on the program will be
some sensational effort or series OF
efforts TO bring the public off the
sidelines and into the market. There
can be no real bull market without
the public. Therefore the public is
wanted. Traders believe that some
speculative favorite is being groom.
cd and will be sent forth as a stalk
ing horse. Hence the apparent sul.
libility Of every trader when h,
hears new rumor applying 10 this
OF that stock.