Evening star., 1921-07-27
STOCKS ARE SLOW,
BUT HOLD WELL
Bond Buying Features the
Session-SteeI Steady.
United Drug Weak.
BY STUART p. WEST.

NEW YORK, July 21.-The bond
market today continued the most in;
terestinE point In the situation. as 1t
has been for the last week. There
were some significant features in the
trading in stocks. but the stock mar
ket as a whole was dull and OF Tar
less consequence than the bond mar
ket,
The advance in bonds was fairly
general. but the main interest CEN
tered in the railway and public utNty
now back, to the high Of last January
and in some cases have gone through
this level. Inasmuch as the main
criterion for valuing investment Sc
curities is the interest rate, there is
no reason why the aavance a snosir sir
months ago. ..
Certainly there Is no comparfso? !?
between the outlook for ease ana
further decline in rates in the pres
ent money market and In that al the
close OF January.
of some IS per cent. a federal reserve
discount charge of Z per cent and Z
per cent commercial paper and time
money rate.
Now we have a 81 per cent reserve.
5k per cent discount. and time
money and commercial paper market
fully adjusted to a per cent OASIS
steady. But Dull
The stock market demonstrated
quite as much as On any day SO far
its ability to stand Up against un-
favorable trade Jews and against
sporadic weakness in few Individual
stocks. Not only did prices resist in
the face Of these tests. but as rule
they advanced. The Steel Corporation
issues were a good deal above ex-
pectation, and this might have been
strength in the stock. But actually
the report for the second quarter.
having shown earnings going rapidly
down hill. and a deficit OF $4,571.00O.
after paying dividends. could not De
construed as a piece of good news.
The reason why Steel common ana
the other steels were strong tooas o"m.
mon with the general run Of stocks,
have adjusted themselves to trade
conditions and are looking ahead 10
better things.
Some Free Selling.
In the early part Of the day there
was further heavy selling OF the
Central Leather stocks on the oisap
pointing report for the second quar-
ter issued yesterday. There were al
so professional attacks upon Inter
national Harvester, Famous Players
and one or two other specialties. hu
neither the development OF these
weak spots nor a further and still
more violent collapse in United Drue
shares had the least effect upon the
general list This practical proof oil
the markets stability unnerved the
short interest and a covering move
ment set in which became fairly gen.
eral and in certain quarters assumed
considerable urgency.
United Drug Soft.
United Drug added another
points to its loss Of 81 points regis
tered on the opening transaction In
the stock today, when it sold at ~
From that figure 1t broke rapidly
to 6514 and later. took another tum-
BILE below 60. Yesterday the wide
open smash in the stock was some
what of a mystery, but today there
were any number Of explanations. The
fi,st of these was that one OF the
officers of the company had been
forced to unload a large block OF his
stock in a hurry In order TO mee'
obligations at the banks. Another ex-
rlanation was that the dividend was
in danger and that adverse action
would be taken by the directors when
they meet the middle of next month
The forced liquidation in United Drug
was helped along by offerings by the
tear party, which has had its guns
trained on the stock for some time