The Washington herald., 1921-06-02
SELLING BY SHORTS
FORCES NUMEROUS
PRICES TO DECLINE
Crucible Steel Features
Trading by Extreme
Weakness.
SUGARS IN DEMAND
Afternoon Rally Cancels Many
Losses In Spite of Higher
~ Money Rates. 40
SUGARS IN DEMAND

NEW YORK. June I.-Short sell
ing Was resumed at the opening Of
the stock exchange and in fairly
active trading numerous declin-y
OF a point OF two were forced. Cru-
chile steel was a feature for weak-
ness and continued TO be 90 ali d,y,
but the sugar stocks were also sold
aggressively. In the afternoon.
however. the market rallied hack
wei. most of the losses being can
celed. despite the raising o, the
rate on call money from 70 ~
per cent The afternoon trsdine
was. nevertheless. duieter. Toward
the close industrisls showed a pre-
dominance Of fractional gains a,
did the rails, which were relatively
hrm all day.
Exchange.
IL is now abundantly clear that
the recent pronounced weakne,, in
the continental exchanges was due.
as was suggested In this column
over q week ago. TO shifting OF
FUNDS IN connection with German
reparations payments. The repars-
ton commission having required
the Germans TO make the entire
nrst payment in dollars. the latter
were forced TO sell their stocks Of
sterling. francs and other cur
rencies in order TO be able 20 buv
the Necessary dollars. The natural
result IVES marked depreciation
in the European exchanges at New
YORK. a Circumstance which gives
point TO queries as 20 why the
commission should have refused 10
accept anything but dollars.
Tooay's trading in the exchanFes
indicated that dollar buying has
been at least temporarily suspended
and that the market had consioer-
able confidence in the earlier ana
higher prices ~ the allied coun-
tries. With little actual business
transacted. the quotation on sterl-
ing jumped up cents 20 sa.slk.
while francs gained i2E points al
$50 cents, and lire gained iIiS
points at 53sk cents. Narks
meanwhile, were quoted point
lower al l-Ss cents. while Scanda-
navisn exchanges were weak ana
those on Switzerland and Holland
showed good recoveries. After the
recent demonstration 81 the extent
To which reparation payments can
z
esting 70 consider the probable ef-
feet Of the larger payments which
remain to be made The relative
weight Of the different factors in
volved is. however. Insurnciently
known to render prophesy any
thing but hazardous
steel Iadustry. ....
Suspended animation continues Fn
the steel industry. which is QUITE
natural when II is considered that
q general expectation OF lower
prices on the part Of the buyers
Is now compounded with the ap-
prosch 81 the trades usually dull
sePson- The Iron Age reports that
Independent manufacturers are op-
Grating at about IS per cent ~
capacity. while the steel corpora
tion's rate is about 81 per cent with
orders coming in az a rate equal 20
less than 20 per cent OF capacity.
Certain producers continue 60 SHADE
prices and others undoubtedly
would do SO n they felt that anv
considerable volume Of business
would be developed thereby. Mean
while talk Is heard Of the possi-
bility OF another cut in wages dur
ing the coming summer.
April's iron and steel exports
amounted to only $4,000 tons. this
being the smallest amount in seven
wears and comparing with an aver
are OF $4,000 tons a month during
1920. Nevertheless. some export
business is being booked partly 50
result Of the industrial paralysis
in Great Britain.