The Washington herald., 1921-08-14
TMELYWALL STREETTOPIcS

borrowings, and Il could only be
explained by the assumption that
some leading institutions had
called In loans and forced borrow
Srs to make now arrangements
with other institutions.
Leading members Of the New
York Stock Exchange In discussing
prevailing speculative conditions
made the positive statement that
The short account the present
ine Is the target in the history of
the Stock Exchange. This state
ment was confirmed by many Of the
brokers making q speciality of
transactions in the stock loan mar
Let held each day with the excep-
ton OF Friday on the floor of the
Exchange after the close of the
stock market. Many of the active
stocks loaned during the week at
substantial premiums to those who
n'eded them for delivery against
short sales. United Fruit loaned
IS high as " premium and on
Wednesday Western Union COM
banded a premium of Y, large
mounts being required by those
t aders who had offered It down on
m. reports OF new financing.
.merican Sugar Refining has ror
long time ranged from lis to Y
premium. The heaviest borrowing
demand continues in the United
States Steel with the next largest
borrowing in eMxican Petroleum.
TIE short interest. however, in
Guides practically every stock trad
ed In for a long time past.
1t was insisted in some quarters
that the recent selling of Union Oil
vas for the account of q combina-
I. on that acquired over 10000 shares
s!-ortly after the Incorporation of
'he poperty in 1919. This selling
vas heaviest on Thusday, when
TIE stock sold at a new low rec
ord.
Bearish operators and combina-
tions found incentives for violent
attacks during the week In the
statements issued by Industrial cor
porations. an instance being the
heavy selling OF General Asphalt
on Thursday following the semi
annual report OF that company
Unfavorable features of these docu.
ments have been seized on as de-
termining forces, although reports
for the first quarter OF the year
were in nearly all cases fully a.
unfavorable as those for the three
months ended June 80, and have
already been effective In placing
many of the Industrial stocks at q
price level very close to a receiver
ship basis. AS a matter of fact
declines resulting from these bear
attacks end quickly when the bear
pressure ceases and the declines are
generally without effect in unset
Ting actual holdings Of stock.
The behavior OF the financial
markets during the past week has
continued confused and IN some
ways puzzling. Sharp nuctuation.
In the foreign exchanges attracted
attention first. Sterling's value
suddenly Jumped 12 cents and ther
reacted 6. The effect Of reparatior
transactions was at once suspected
and subsequent developments indi.
cate that the likelihood OF over.
provision OF dollars. and the con.
version Of some OF these back intc
OP~oh ne EVEN
therefore was In no way disturbine
and the differences to be drawn ar,
favorable. Germany plainly 4.
meeting her obligations and tn,
European nations are finding Il DOS
sible to meet their financial re
ouirements in this market. In tn,
other and more strictly domesti,
markets a reactionary tendency de
veloped. Stocks went of rather
sharply. bonds lost headway ant
raceded slightly. and cotton dis
played a generally heavy tone. L
was clear that a general tendenc,
towards liquidation existed ant
pessimism developed to an almost
amusing degree. Vague rumors ot
financial troubles were circulated
by the bears and all the symptom.
or a switch in sentiment were ap,
parent.
Actually, however no measurable
change has taken place in the un.
deriving situation. The rally In
stock prices which occurred during
July was conducted in a dull and
professional market CONSIDERING
the absence OF public participaticv
and the season of the year. the re-
markable thing was the magnitude
of the forward movement accom-
nIished. It would appear. however.
that when the movement reached
the distributing stage lack Of pub
lie interest proved an unrleasant
snrnrise and left prices readily sus-
reotible to bear attacks. The reac-
ton in stocks. in other words.
simply marks the elimination Of a
snec"Iative swing and is practically
devoid Of Significance with refer
en"e to the trend Of business IN