Evening star., 1921-11-22
TRADING Narrow;
PRICES HOLD WELL
Conditions Do Not Favor
Bear Operations-Picking
Up Rail Shares.
BY STUART p. WEST.

NEW YORK, November 22-The
volume Of business was smaller in the
stock market today. rejecting the un-
certain state of mind in which the
fluctuations Of the last week have left
spectators.
The greater part Of the market ap-
pears to have lost the buoyancy which
characterized it a fortnight ago. Yet
the reaction which usually follows in
q speculation situation which has
gone stale" has not occurred. The
dwindling interest in the market to-
day signified that the average trader
was divided in his judgment between
these two conflicting symptoms and
was determined that the wisest atti-
tude was that Of an onlooker.
References to the immediate tech
nical situation are dwelt upon be-
cause at the moment Wall street is
giving more heed to the inside posi-
ton on the stock exchange than to
the position outside. The two great
sustaining factors which are set
against much of a downward turn
are, first, the extraordinary invest
ment buying movement, which. after
having run for three months. still
shows no sign of abatement. and.
second. the ability of speculative syn
dicates to borrow all the time money
they want at 5A per cent, with every
reasonable assurance that even this
does not represent the bottom.
The Exchange Position.
The curious weakness which de-
veloped yesterday in French ex-
change was even more conspicuous
today and the selling movement
spread to Italian lira- There could
ho "a 9
was a measure of the disappointment
felt in financial circles that the
French program for disarmament laid
down by the premier of France did
not carry more promise than 1t did
Of reduction in the h FRENCH ;; budget: u,'I tom
France, the weakness in italian eX-
change would appear to forecast a
similar disappointment in the Italian
program.
Low-Priced Rails.
Low-priced rails-that is. a selected
list of them-were actively bought
for time in anticipation of favor
able series Of October earnings re-
ports which will begin to come in
during the next few days. The leader of
this group was Missouri Pacific prefer
red. Predictions are now being made
with more confidence than ever that
dividends will be resumed at the rate of
per cent within the coming year.
BY January l back dividends will
have accumulated to the extent of 20
per cent. In view of this there does
not appear much logic for any ad-
vance in Missouri Pacific common.
Other low-priced rails in which the
of good October reports
was an influence were Rock Island
and Pere Marquette.
Gulf States Steel.
The advance in Gulf States Steel
attracted attention because it came
when other steel stocks were lag
ging. Usually this means that there
is some special incentive back of the
buying which did not apply to other
members of the group. Gulf States
owns rod, wire and rolling mills in
Alabama and, because it specializes
in the lighter steel products, it has
benefited more than most other steel
concerns by the recovery which has
come in the steel trade during the
last three months. This recovery has
been most felt in the lighter products,
like wire and wire nails, while COM
paratively slight in the heavier
products. The company is now said
to be operating at more than IS per
cent of capacity. 1t has brought
down its costs and Is getting much
better prices.