Evening star., 1921-05-03
PROF|T-TAK|NG IS
CAUSE Of REACTION
Market Showed Strength in
Early Hour - Strength
Noted in Foreign Exchange.

NEW YORK. May "A further ad-
vance occurred this morning IN nu-
merous parts of the share list, but
later in the day the market ran into
heavy profit taking. This selling was
heavy enough to check the rise IN
most directions and to bring about
an irregular reaction. There was
very little incident in the outside
news to throw any light upon the
price movement. 1t was merely the
familiar adjustment of market
which has been going up rapidly and
in which attractive profits have ac-
cumulated in speculative hands.
Of more interest than anything
which happened in stocks was the
continued advance in the foreign eX-
changes. Sterling rose another cent
and a half in the pound. Francs, for
the first time. got across the Scent
level. italian bills were equally
strong 1t is not easy to place i'm
mediate bounds upon this movement.
Sterling went as high as S4.o6 year
ago. with conditions nothing like as
favorable as the present for an ad-
vance.
Last springs high was made when
Great Britain was owing monthly
merchandise bill fully two and half
times the present one, and when IN
stead Of S225. 100000 gold transfers
the maximum sent here from abroad
was s6O,OOO,o0o This comparison
would either seem to make the S4o6
sterling rate of a year ago too high
or today's rate of s3.97a altogether
too low.
The equally notable advance in
French exchange reflects of course
the turn in the French foreign trade
within the last two months from an
excess of merchandise imports to an
excess of exports.
Gulf States steel.
1t has fallen to the lot of the Guif
States Steel Company to furnish the
first bright spot in whatever turn
there may be in the steel business.
Reports from the south. where the
plants are located. tell of decided
change in business since the first OF
April. During the first three months
of the wear the company received an
occasional order of from so to 100
tons daily, but during April orders
have been coming in at the rate OF
from 400 to 700 tons per day.
The Panama canal route has
brought much of this new business,
but orders have been scattered all
over the United States as well. Gulf
States Steel has had no trouble at all
with labor: wages have been de-
creased and the working force cut
fully 25 per cent.
Gulf States Steel is Independent for
all raw materials. having its own
coal mines and iron ore body.
Look for Increase.
American Express Company di-
rectors at their meeting scheduled TO
be held tomorrow are expected to IN
crease the quarterly dividend rate,
which at the present time is 81
American Express received close to
100000, or a sum equal to s2.3S per
share, on the 10000 shares of no par
value from the American Railway
Express Company. which recently de-
clared a dividend Of $3.50 share to
stockholding companies.
The Wells Fargo Company. distrib-
uted its share Of this dividend imme-
diately, and it is felt that American
Express will do the same. The main
tenance of the per cent dividend by
the American Railway Express means
S4.o9 annually for American Express
stock. The present So dividend is un-
derstood to have been earned with
ample margin in the past year.