Evening star., 1921-08-11
ssSSOcKS ARE WEAK;
.NEWL0WSSC0RED
Entire Market Suffers From
Widening Scope of Bear
Activities.
BY STUART =. WEST.

sEEW YORK. August ll-ihere
was Scarcely anything in the line OF
new development TO account for the
decline on the. stock exchange To-Day.
1t was simply a continuance In d
rather larger way .ot. the doWhMhiu
movement which set in EesteruaS-
This movement was influenced ny ihe
prospective delay in the railway re-
lief bill. which is source OF Srett
disappointment. because Tor the iaSt
month or more this has seemingly
offered the best hope there was Tor
an early turn in the business sltua-
tion.
The tightening of the money mar
ket has been n contributing factor IN
the decline. not because 1t has IN,
volved any restriction upon wall
Street credit but because IL mas
thken away the incentive for the ac-
tive investment buying which was
such, y stimulating feature a Tort
night ago. Along with these causes
there is the constant reminder, as IN
the action of the American sugar
] ot yet ut the end of the periou of divi-
dend passing.
Declines More General.
Today's decline was more general
and was attended by a larger volume
OF trading 1t was evident that. while
operations for the decline We're stu
IL most active influence at work
bringing out real stocks than they
had been on preNio days. Son"
speculative accounts which had SUI
vived the sinking spells OF June and
July were finally undermined, eSpc-
Cially in the lowc- priced oil stocks
Shares OF companies Effected b.!
the recent cuts in the California oil
district, like California Petroleum
and Union Oil. were extremely weak
he sudden Offering of large block
of international Paper broke the
Price two points between sales
Shares of the electric companies
slumped rather badly and the coppers
" ere haayily s1ld. ecause of the ''is-
GppontinG course OF the copper trace
The feathers. were another weak spot
and Baldwin Locomotive was Til"
member of the equipment group upon
which the selling chiefly conversed
O,her Markets Subordinate.
The other markets outside of the
stock market, which so often have
been of much more Importance. were
today of subordinate interest. There
: was no such weakness in bonds as
there was in stocks. but the check
imposed by the higher money rates
stilI made itself felt. Cotton options
which are usually sensitive to wall
street fluctuations. Were affected by
the drop in the share list
, Dealings in foreign exchange were
l.
verse sustained by short sellers al
the outset of the week. the disposi-
tIon among spectators has been to
let sterling alone. The weekly state
mcuts of the foreign banks again re-
Vcaled a heavy contraction of note
issues, especially in the case of the
Bank of France. This curtailment OF
paper currency has now become quite
as marked in Europe as in this coun-
try. Ii is. of course, part of the world
IL Ia L., a. ~
trade depression.
Alcohol Makes New Low.
Industrial Alcohol made new low
record. but was not ANY weaker than
the average for the industrial list.
The dividend meeting is scheduled
for next week, but there is no means
of knowing what will be done. 1t is
one of those cases where it is doubt
full if the directors themselves will
know what they will do until they
actually get around the boardroom
table.
OF the S15-000,00 bond issue. the mar
ket for Western Union stock evinced
considerable relief. The proceeds of
this issue will put the company in
funds for all purposes. 1t is partly
borrowing to provide for new extern
SlonS and partly to REIN 0urSe the
treasury for moneys spent in past
years, which would ordinarily have
been charged against capital account.
but which were actually 9aken out of
earnings. AS for the Western Union
dividend, the margin shown for the
hrSt six months was rather skinny.
American Sugar Discussion.
There vas quite a bit of discussion
today regarding the ultimate price
OF American Sugar common. without
a divident- 1t was the consensus OF
opinion that Sugar would probably
act like United States Rubber com
mon, which is selling around So 1t
was also the general belief that
liquidation would crop out in the
stock from time to time when holders
of il saw a chance to transfer their
holdings into some stock selling at
or near its price, which still carried
a dividend.
Selling which looked like special
liquidation broke out in Union Oil and
the weakness in this issue communi-
Gated itself to other of the lower
priced oils. A weak long interest
was built up in Union Oil some time
ago. and those who bought then never
had a chance to get out at a profit
Today when pressure was brought
to bear by the confident short inter
est a flood of selling orders came on
the market