The Washington herald., 1921-04-28
EUROPEAN NEWS
CAUSES WEAK TONE
ON STOCK MARKET
Recent Optimism Shaken
By French Stand on
Reparations.
STEEL STOCKS WEAK
Pennsy's Reduced Dividend
Rate Breaks Issue and Un-
settles Rail Securities.
STEEL STOCKS WEAK

NEW YORK. April zT.-wth re-
cent optimistic views regarding the
settlement OF the German repsrs-
tions question shaken by reports
Of the French stand in the matter.
the stock market displayed q weak
tone from the start. Trading was
again active and yesterdays leaders
for the rise, the steel stocks, were
today the outstanding weak spots.
Oils also were uncertain. although
General Asphalt enjoyed a spec
tacular rise. During the last hour
announcement OF the reduction in
the Pennsyivsnia dividend from 50
to 81 on the $50 shares resulted in
a break Of IL points in that stock
and unsettled the rails. Toward
the close the latter were lower, in
some cases by better than l point,
while among the industrials despite
considerable irregularity, declines
Of l and 3 points were frequent.
all day.
Exchange
After yesterdays violent advance
in French francs, which suggested
that many were short Of the mar
ket and feared a composition OF the
reparstions dispute, a fairly sharp
reaction occurred today following
reports OF a French refusal of the
German proposals After gaining
80 points al the previous close Of
7.1O cents. the quotation to-day re-
ceded 10 7s6 cents. Belgian francs
sustained an equal loss and Italian
lire fell back points to 4.Se cents
Sterling. meanwhile. was actively
traded in and was relatively steady,
losing quarter OF a cent at $3.50 =,
and again moving within a mar
row range. Weakness continued in
the Scandinavian exchanges and
particularly in that on Sweden,
which reacted y cent. and was ac-
compsnied by reports 90 the enect
that gold shipments from this
source are likely 20 cease. Greek
drachmas continued their decline
and are now worth S-22 cents as
compared with 7.5s at the time the
recent offensive against the Turks
was started.
Steel Industry.
An Improvement in steel trade
sentiment with a slight increase in
demand which is attributed TO de-
layed spring business is reported
by Iron Age. At the same time.
even though baying by the automo-
bile industry is more persistent than
had been expected the Improvement
in actual operations is comparatively
slight. the average for the entire
steel industry still beinC somewhat
under 40 per cent OF capacity. This
improvement. Furthermore, is the
| result OF increased bookings made
BY independents just before their re-
cent increase OF prices and Of the
reinstatement Of certain business by
the steel corporations subsequent 10
its lowering Of prices to meet the
| independents' schedule. Consequent
! ly IL is clear that the amount OF
actual new business developing
spontaneously continues small. There
/ is. in fact. no reason 10 expect =
change in this situation until
labor costs in consuming industries
are reduced and money is cheaper.
or until greater assurance may be
had that transportation charges and
steel prices have reached a more
stable equilibrium.
Reports Of steel company earn
ings for the FIRST quarter Of the
year which are now available indi-
/ cate that most OF the independent
cannot do business at their recent
rate OF operation. which averaged
about 30 per cent and still earn
dividends.