Evening star., 1921-08-13
FIRM At OPENING;
TRADE IS LIGHT
Pleased at End of Banks
TroubIes-Rubber and Can
Shares Are Soft.
BY STUART p. WEST.

NEW YORK, August 13.-Prices
Started in higher on the stock eX-
change this morning in response to
the announcement made after the
close yesterday that the troubles of
the Mercantile Bank of the Americas
had been adjusted. This has been a
subject of uncertain discussion for
a long time past. Supposedly it has
been accountable at times for some
of the liquidation which has upset
the market.
The settlement did away therefore.
with one of the sore spots in the
financial situation, which has been a
more prolific source of disturbing ru-
mors than any other.
What little buying there was, how
ever. quickly ran its course. The
early gains amounted to a half point
or so. when the familiar selling broke
out in various industrial stocks and
this put a stop to the recovery.
Central Leathers We're again forced
down to new low prices.
Continental Can broke badly. an
ticipating the passing of the dividend,
and the United States Rubber shares
fell sharply. the weakness in the
first preferred being more notable
common. This decline was accom-
panied by rumors of the new financ-
ing, which have often been heard be-
fore this year.
Steels and Rails Firm.
The weakness in these industrials
unsettled more or less the general
market, but did not bring out any
important selling.
Trading continued dull and the
frmness of the steel and rail shares
was a noticeable feature, as it has
been on the two previous days. The
wheat market was helped by the re-
duction brought about in freight rates
on export grain.
There was no variation of conse-
quence in the foreign exchanges
While the street had been looking
all yesterday for an announcement
that the difficulty of the Mercantile
Bank of the Americas had been set
tied. it had not fully discounted the
effect. The formal assurance that the
necessary credit had been provided
came after the close of business.
Stocks in which the short interest is
believed to be largest had the most
gain.
ing in at 4624. as against As at the
close last night. General Electric
opened up more than a point. while
Steel common on the first few sales
rose a half point to IAN
There was no life to the trading,
represent nothing more than a desul-
tory short covering.
Concerning Continental Can.
1t was on June that the Continen-
tai Can directors fooled nearly every
body by declaring the regular divi-
dend. The stock had broken from
above so to around AZ. because every
body was sure that the rate would be
either cut or passed altogether. The
remarkable thing was. however, that
there was so little rally when the un-
expected happened. and the dividend
remained the same.
This action made the street skepti-
dividend policy had been too liberal
for the known conditions in the can
trade.
The next meeting. when the
dividend question will come up. is
scheduled for the early part of Sep
tcmber. and the break in Con-
tinental Can yesterday and today
was taken to indicate that this time
distribution to shareholders will be
omitted entirely. Last year the COM
pany earned little over nine dollars
on the common stock as against
seven rollars paid out in dividends
This year the earnings are known
to have been considerably reduced,
for the pack of the four main lines
upon which the canning industry
uepenus-corn, tomatoes peas and
fruits down to not much more than
half of what it was in 1920.
Fresh weakness cropped out in the
rubber stocks. On December 81. 1920
the company'S inventory stood at
the huge total of $123,50 900, as
against ss7. $4,000 at the end of 1919
At the same time there was an item
of S49.4o5.0O0 notes and loans pay
able where there had been no such
liability the year before. Beyond
unofficial assurances that loans were
being paid off, no authentic informa-
tion has been given out.