The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-31
NDuS1RIAlS MAXI
GOOD GAINS AFTER
IRREGULAR START
Market Proceeds With
Recovery Despite High
er Call Money.
SUGARS LEAD LIST
Gains of From l 10 4 Points
Cover Broad List at Close.
Selling for Tax Purposes.

NEW YORK. Dec. 3e.-The stock
market proceeded with a sharp re
covery today despite stirenIng IN
call money. Loans were renewed
at S per cent but new money COM
manded a rate OF early in the
ence for the speculative community
TO see the sugar stocks leading .
general recovery. In the frst two
hours gains were confined 20
point or so except in this leading
group and in a few specialties. AT
Ter a period of Irregular trading,
however, the pace quickened and
all classes of industriais moved
forward without serious Interrupt
tion and at the crosse gains Of 1 90
I points were spread over a broad
list OF stocks. The market sus-
tained some selling for tax pun
poses but this was not material
factor.
Selling for Tax Psrpcse.-
The time for selling securities
through the regular Stock Ex-
change channels and concentrating
the deal during 1891 expired yester-
day. Consequently there were
many sales for cash today. much
more, in fact. than had been an
ticipated- There was nothing sur
prising about he cash selling in
greatly deprecated. low-priced
stocks for II was expected that
many holders would kill two birds
with one stone. that is.\dispose OF
highly speculative issues in favor
OF something more sound and at fhe
same time establish big losses for
income tax purposes But there
was cash selling in high priced and
wei rated stocks which are not
only considered desirable issues. 20
hold. but are also close to the
highest price of the year. For a
time one Of every four sales re-
corded on the tape was designated
as cash transaction. In the bond
market sales OF this kind were con-
fined mostly TO weak issues but
there was some hurried selling OF
Liberties.
Despite this cash selling. most OF
which was carried through at slight
concessions from the price of. stock
sold in the regular way, the mar
ket was steady. Brokers have been
pointing out that. in view OF the
smart advance since August. the
tax consideration Restraints profit
taking while encouraging the es-l
Enlistment OF losses In view Of
the recent advance there 10 also an
opportunity for persistent shorts TO
establish losses. and by doing SO
they would support the market
sesrs- Bcchuck co.
The steps taken by Julius Rosen-
wald. president OF the Sears. Roc
buck e. Company. 20 strengthen the
company's position furnished
topic OF general discussion in Wall
Street today. A net gain % ~
points on the first sale Of common
stock indicated that these develop
ments were recognized as constsuc-
tive. In discussing Mr.. Rosen-
wald's purchase of some of the
company's real estate for $4,000.
600 the Streets ideas seemed TO be
clear. but many were caused to
wonder how the gift Of 5o.o0s
shares Of stock would help the COM
pAny. II was pointed out that the
I company cannot realize on these
shares through an outright sale
because the donor stipulated that
they should not be sold for less than
par. II was recognized also that
the stock. being unstable until the
market RECEIVERS TO 100. cannot be
used as collateral for a bank loan.
Another point made is that II the
company decides TO record 1880
/ shares in its next balance Seet as
investment they cannot be classed
as current assets because they are
tied up with the par value Of sale
limitation.