The New York herald., 1921-08-17
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Continue to
Move Down-MarkS Fall
to 1.06 1-2 Cents.

The procession OF industrial share
prices toward lower levels continued
yesterday, partisans OF the fall of values
evidently making the most of plans of
the Republican majority In the House
to retain excess profits and super in
come taxes for the current year. The
stock market received this news as
slap at business, and, while excess prof
its in 1921 are quite certain to be nomi-
nal. the principal of the thing carried
no constructive influence for shares OF
producing companies. All along the
market following had been hopeful that
prediction pledges in regard to those
two forms OF taxation would bear fruit
in this year of vast business readjust-
ment and tension. The Street realizes
that In case those taxes apply. there is
more than a possibility that persons
amenable to the higher schedules OF in
can to tighten their burdens by taking
losses through the sales OF securities.
thus getting credit on their books for
whatever depreciation Of prices has oc-
CURED during the year.
Stocks opened lower than they did on
Monday. and after declines of large
fractions to more than points had been
recorded by oil. railroad equipment and
speciality shares. there was brief re-
covery, followed later In the day by a
second period OF weakness. Rail issues.
too. gradually went lower. although
business in them was light and COM
ment of brokerage offices disclosed hope
that the Administration would yet have
its wishes met in consideration of the
funding bill before the Congress should
adjourn. The activities of the Con-
gress, 1t is safe to say, supply the chief
influence In the present markets. For
one thing, uncertainty about the final
terms OF tax legislation is causing in
vestors to hold off their orders, which
in turn makes it all the easier for the
bear party to depress quotations.
The heaviest pressure was directed
against petroleum stocks, including Mexi-
can Petroleum, Pan American, Houston
Oil and Texas Company. although sharp
er reactions were brought about in GER
tain equipment issues. The average de-
cline Of active industrial shares was be-
tween point and points. steel issues
again making an exception to the rule
by losing no more than good sized frac-
tons Reports from steel manufactur-
ing centres tend to confirm earlier inn
pressions that a fair degree Of improve
ment has occurred this month compared
with July production records New buy
ing is traceable to railroad repair work,
a moderate growth of export orders and
the replacement of warehouse stocks
which have steadily been drawn down
by needs of domestic consumers which
could not be postponed indefinitely.
Germany has two more weeks to Ii
quidate the balance Of the 5000, 900
reparations payment, the last for this
year of which about So, 100000 has been
proviIad for. according to tabulations
from abroad. The action OF mark ex-
ch1nge in the last few days indicate
that the German Treasury officials are
selling marks on a large scale in Lon
don and New York and probably in
other European centres in order to build
up requisite balances. The mark rate
yesterday went to 1864 cents. the low
est since January. 1920, when it's quota
ton approached cent. In late trans
actions the rate rallied yesterday after
noon to 1.115 cents. Sterling receded
2 cents to 3.64 and Continental ex-
changes generally eased off.
The question whether European ex-
changes win noe work toward again af-
ter the German payments are concluded
may be raised. BY that time, however,
the export movement of grain and cot
ton probably will be approaching the
highest totals of the year with conse-
quent expansion OF bill offerings.
Call money was per cent, with sup
plies rather light