The Washington herald., 1921-07-03
Traders Nonplussed as to
Cause of Hysterical
Collapses.
INDICTMENT FILED
Brown Believes More Drastic
Action Will Be Taken if
Matter Is Sifted.
Nv WALTER b. BROWN,
Editor New York Commercial.
Z Iu-Iaa.aar Limited NeMS.l

1writteu for United News)
NEW YORK. July with bet
ter undertone pervading the stock
market in the latter days of the
week. the question was being asked
as to how much OF the recent hys-
terieal collapse Of stock market
values was due to general liquida-
tion and how much to bear manipu-
lation. Those who have been close
to the inner circles have tried ="
make it appear that hquidatlon was
responsible, but there have been TOO
many evidences of manipulation 10
make the liquidation theory wholiy
tenabIe The grand jury mas af-
ready found one indictment ior
spreading false news relating 10
Msxican Petroleum, and the proo-
ability is that il the matter is sifted
much further other drastic action
will be taken
Accurate Predictions.
1t is a rather remarkable feature
of the situation that certain in
diyiduals have been able to predict
the declines in this stock with abso-
lutte accuracy. What is more, there
seemed to be advance Information
in certain quarters that the pro-
posed new tariff would contain a
ktax on crude petroleum, although
wall Street itself knew nothing
about IL until the bill was pub
ki!shed on Thursday morning. The
stock broke an additional IA points.
carrying II down to 9SA, the lowest
price in three years, as against 26i
in 1919. the high record for the
stock. On Friday it went still
lower. under a continuation of these
bear attacks.
Where the stock is coming from
is mystery 10 Wall Street, ror
the best information as to ths
available supply placed 1t at about
7E 300 shares, although the daily
sales have almost continually ex-
ceeded that amount One explana-
ton has been that the Pan Amerf-
can company has been selling the
stock that 1t has held. but this
IS vigorously denied by the COM
pany officials
Mexican Petroleum Manipulation.
There is, of course. much more
behind the Mexican Petroleum ma
nipulation than appears on the sur
face. Whatever II may De. it has
been . remarkably effective weapon
in driving stock market values
down. and the losses have run into
the hundreds of millions.
Some disappointment IS man.
Tested because the month OF June
has not revealed the Improvement IN
general business that was expected.
Even under normal conditions there
Is some let-down in June following
the conclusion of the spring demand
and prior to the opening of the
autumn business. This year there
has been the restricted buying re-
sulting from the hand-to-mouth
policy which merchants nave pur-
sued in making their purchases. and
in addition there has been the
natural hesitancy which is sure to
theless the outlook for autumn
trade is considered quite good.
Iron and steel Industry.
Recessions in the iron and steel
business are still to be looked for
While there are large arrears of
construction work waiting for
favorable conditions, there is very
littls disposition to go ahead at
this time, and the probability is
that for the remainder of the year
the best that can be expected will
be work that can no longer be de-
fefred. The railroads have much
OF this work waiting to be done. 1t
will. In all probability, however, ne
limited to maintenance of roadbeds,
new rolling stock. and shop equip
ment. Further cuts are being made
in automobile prices, this time
among the higher-priced cars. There
is an increasing demand for the
lower-priced cars, and some of the
well-known concerns have returned
to full capacity and have announced
that they will continue at that rate
for the remainder of the year.
New Tariff Bill.
Probably the most important
tic standpoint, has been the report
ing of the new tariff bill on the
floor OF the House of Representa-
tives by the Ways and Means Com
mfttee. From a nonpartisan view
point, IL is much saner document
than was hoped for. as an attemp,
has been made to meet the REQUIRE
ments of an exceedingly complex
situation. The bill had to be a
revenue producer. it must protect
American Industries from ruinous
competition. and at the same time
make II possible for us to barter
with other countries where our in