Evening star., 1921-05-06
'PR0F|:T-TAK|NGIS IS
MARKET FEATURE
Steel Seems Confident as to
Future-Mexican PETROL
eCm Higher.
by STUART p. WEST.

NEW YORK. May GA greater de-
gree Of irregularity appeared in va
rous market movements today. as
was quite natural in view of the
rapid accumulation of speculative
profits on previous days.
Where stocks sold off. it was almost
| wholly because realizing sales tempo
rarily were greater in some instances
than the incoming buying orders.
Not the slightest change occurred in
the main position either within or
outside of the share list. Sentiment
in speculative circles continued cheer
full and sanguine regarding the ulti-
mate price movement, regardless of
more immediate fluctuations
Investment sentiment was equally
confident, taking its stand upon the
easing money conditions and tn" sus-
tained recovery in bank reserves The
reaction went somewhat further in
sterling exchange, but here again
profit-taking by recent speculative
buyers was the factor and not any
change in the general situat;cn.
Continental rates. with the eXcep-
tion of German marks, which were
lower, moved contrary to sterling.
French francs in particular made a
new high. the advance in this case
having a direct connection with the
latest word on German reparations.
which has made the outlook for an
early settlement seem brighter.
Pnsses Dividend.
Again the stock market demonstrat-
news which had been pretty well an
ticipated. The American Smelling
directors passed the common share
dividend altogether. but the maximum
decline in the stock was two points.
and this was followed by a partial
rally.
The explanatory statement of the
smelling directors was interesting
for the thoroughness with which it
, went into the entire situation in the
metal trades. The widespread shut
down at the mines severely curtail-
ling the smelling business, was. of
course. the reason for omitting the
dividend. but the management made
the point. which is now familiar. that
this drastic reduction in output is
bound to make itself felt before long
in restoring a more profitable level of
copper prices.
Take Profits.
Railway stocks. after a further
rise at the opening. ran into heavy
profit-taking. but they continued to
! hold up well.
Tobacco stocks were prompt to re-
spond to the increase in the United
Cigar Stores dividend. which had
raised to .. Special strength deveI-
oped in shares of steamship and al
lied companies and in the coal
shares.
tSpurt In TObaccOs.
The spurt in the tobacco stocks
followed the declaration of 2 per
cent dividend on United Cigar Stores
payable in June. This was an in
crease over previous monthly pay
l " per cent was declared and in
! March and April l per cent. The in
crease fitted in with statements
which have recently been made on
good authority that the tobacco
| trade is doing much better than it
was at the start of the year Re-
tail Stores and Tobacco Products
were the ones which benefited most
by the United Cigar Stores action.
Mexican Petroleum Doomed.
The Mexican Petroleum tip was all
over the street this morning. but in
spite of this widespread publicity, it
! made good. There are reports of
favorable developments regarding the
property to be announced some time
around the middle of next week. In
side knowledge Of these probably had
omething to do with today's ad-
vance.
But the street also had a story
! to the effect that a we'll known oper-
ator. who in the bear market was
banging away at the stock and talk
/ ing very much lower. prices. suddenly
made up his mind that the thing to
do was to double up and go long. The
! operator in question was given the
credit for the Mexican Petroleum
move, as he was also supposed to be
behind the later stages of the Stude-
baker move.