The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-08-26

NEW 1Ohh, aug. zo.-cI4uoAru
Industrial stocks did better today
but their firmness did not overawe
the, shorts. to the extent that pres
sure WAGE lifted from any OF the
unfortunately situated specialties
which have been under attack for
several days. nor did II encourage
weak holders of these stocks TO
delay liquidation Further losses
were sustained by American Inter.
national, National EnamelIng. Mer-
camille Marine preferred. American
Sumatra, United Drug and crucible
Steel There was a steady increase
in the number of stocks loaning at
premium Rails enjoyed good
rally In the morning but later re-
acted
Tho growing demand for steel
common, not in the stock market tt
self, but in the loan crowd after
the market closes bears out what
has been said about the size Of the
short Interest in this stock. Yes
terday afternoon there was such a
borrowing demand for steel that
the interest rate dropped TO 5 per
cent The oldest traders and OBJ
servers do not recall a time when
this stock loaned at a rate under
the call money renewal rate.
Houses which claim to have some
knowledge Of the identity Of the
big traders who have been selling
steel for the decline state that COM
mitments have been entered into
not with the intention Of realizing
a profit of one or two points with
in a short time. but OF remaining
short until liquidation Of the stock
has been nearly completed.
The announcement made this
morning that the General Electric
Company would put into effect a
10 per cent reduction in salaries
at its Lynn plant on September 1
brought the stock into demand this
morning. At one time IL sold as
high as 11+h. a net gain OF "a
points from yesterdays closing and
points from the low Of last week.
A semi-official statement made
80 about ~" sar'n time as the Lynn
announcement, placed the Schenec-
4 plant sa!ariod employees in
line -or a cut of 10 per cent.
National Enameling started the
day with a break Of 3h points.
following a net loss OF Sh points
yesterday and made a new low rec
ord for the year at IS. This price
represents a decline of over 60 per
cent from the years high mark
made last February. National
Enameling is one of the many con-
Germs which, prospered greatly dur
ing the participation OF this coun-
try in the world war. Prior to
1917 the stock was selling as low
as 6h and from this point 1t rose
to a high Of sS5s in 1919 and SsIz
in 1920. In February of this year
the stock was selling as high as 65
There has been a marked falling
off in the demand for the company's
products following the end OF the
boom period last year. and in addi-
ton II is suffering from sharp do
nestle and foreign competition from
companies well established in the
field. Possible dividend action has
played no part in the sharp breaks
OF yesterday and today. as the divi-
dend for the full year was declared
at the meeting Of the directors last
February.
The periods during which the con-
structive element in the stock mar
ket is allowed to feel cheerful are
few and short. This morning the
railroad stocks started to rise on
the strength of a rumor 10 the cf-
feet that in passing the bill giving
the War Finance Corporation au-
thority TO finance the export Of az
riculturaI products up to $l.500.O05.
900. Congress has really provided for
the railroads as well. The sole basis
for the rumor was the fact that
tho amount of the authorization
had been increased fromS1 900 0O0. 900
TO $500. 600. 900 at the last minute
The inference was that the al
ditionaI s50O,oO0.oOo would be
made available for relieving the
railroads. The rail stocks We're re-
spending to this talk when Eugene
Meyer. Director of the War Finance
Corporation issuer a fiat denial.
Thereafter the rails reacted.
The excitement attending the
sharp decline and equally sharp raj
ly in Mexican Petroleum around
midday was similar in some respects
to that which existed in the spring
Of 1920 when the Supreme Court de-
cision making stock dividends free