The Washington herald., 1921-05-22
TIMELY WALL STREET TOPICS

NEW YORK, May 2i.-AIthough
there were frequent displays OF
strength In the stock market DUR
ing the past week the advances
which were made were without
yigor or sustaining power and the
most that could be said when up
turns occurred was that many
stocks had become oversold through
extensive bear. operations and had
been put In a position where short
covering was easily forced. The
long list Of dividend changes. In
cluding the suspension Of dividend
payments on several stocks. while
definitely expected and In some In.
stances fully known Of long before
the directors took action exerted
cumulative influence toward the end
Of the week and made many Of the
room traders who had taken a posi-
tion on the long side quickly turn
bearish. In the general drift OF
market opinion the reductions and
suspensions recorded caused a good
deal OF discussion as to what was
in prospect at the June dividend
meetings and possibility Of reduc-
tions at that time was used az a
chief reason for selling stocks in
the past few days.
Washington provided an instance
for the selling of American su-
matra in the past week although
the statements coming from the
agricultural bureau were denied In
part by interests concerned In tho
affairs of that company. The situa-
tinn nf fnhaNan
confused to some extent by strength
which developed in other issues In
this group. Trade interests state
thst the collapse Of leaf tobacco
prices for the 1920 crop. which was
most pronounced in cigarette types.
mas erected a tremendous saving
Tor lne larger tobacco companies,
the chief business of the r. J. Rey-
nolds, Liggett and Myers. p. Loril.
lard and American Tobacco Co. con-
slsting OF cigarettes. According to
these statements cigarette con-
sumption is showing a continued in
crease not being checked by indus
trial depression and idle labor. some
u the cigarette manufacturers as
sat tl~t 1921 viii he the biggest
year in the industry.
A good deal Of surprise was
caused In the Wall street district
by the action Of the stock exchange
authorities in arranging for a spc-
ciai meeting of the governing COM
mittee, at which IL was decided To
grant the petition to close ths ex-
change on next Saturday. II was
stated by some of those concerned
In stock exchange affairs that this
action was not due TO any special
desire to Lessen the labors of thos.
employed in the Wall Street dis
trict. but simply to facilitate neces-
sary work in connection with the
rebuilding of the exchange which
called for changes in the bond de-
partment at the present time. As
the Fourth of July also comes on
monday. the suggestion was made
that the stock exchange may again
De governed by the same necessity
10 provide for alterations and make
a triple holiday at that time.
divergent views are expressed in
regard to the copper trade and out
look for copper producing COM
panies. Some Of the low cost pro-
ducing companies have made no
contraction Of their output. but
nave been steadily selling the metal
Whlle other companies have entire
~ suspended mine operations and
are out OF the market as sellers
except for the transactions mad.
through the copper export company.
Miami Copper was one of those that