The New York herald., 1921-06-28
FINANCIAL NEWS
AND COMMENT
In Reaction of Stock Market
Sugars, Rubbers and Oils
Are Weakest.

The recovery of stocks on last Friday
and Saturday proved TO be too rapid for
permanency and the market ran into
a reversal of form in yesterdays deal
ings. In considering the net declines Of
l u points to points among active
Industrial issues. regard should be paid
to the fact that In the fnal two days
of last week rallies above minimum
quotations extended from 3 to more than
8 points. At time like the present
when public buying Is admittedly OF
small volume, 1t Is to be expected that
little pressure will have quicker and
greater effect than it does during periods
when spectators for the long pull are
willing to buy and hold. Business yes
terday seemed to be almost entirely In
the hands OF professional traders who,
seeing that an initial bulge was not we'll
sustained. forced prices down in the
afternoon. Call money remained at
per cent.
Sugar and rubber shares and certain
though several rail issues retreated un-
der a light output of sales But in the
last half hour of trading the entire list
moved of and many stocks left of al
their lowest levels. The sluggish de-
mand for the rails might be considered
somewhat surprising, inasmuch as the
carriers are about to enter an era OF
lower wage costs while the season of in
creased traffic movement begins with the
movement Of crops to market. That
| tonnage will press on the railroads
earlier than usual this summer by rea-
son Of high temperatures in many Sec
tions of the Wheat Belt. May earnings
| although by no means uniform, are max
ing a fairly good showing, the Pennsyl-
vania lines reporting yesterday a net in
come Of $3,S4S.000, in contrast to a def
icit OF s5.727,000 in May. 1920, when
strike effects were severe. The Balti-
| more and Ohio gave a demonstration OF
economy Of operation in an increase OF
nearly $125,000 in net revenue in spite
of fall of s2.5oO.OO0 in gross earnings.
The railroads, however, are still suffer-
ing from the fact that past accounts
with the Government have not been
closed, and certain phases of future
railroad financing must be worked out.
An excellent piece of news reached
the financial district after the markets
were closed this beirg the announce
ment that British coal miners and oper-
ators had reached a provisional agree
ment which would permit the resump-
ton Of production next Monday. Evi-
IDENTIFY an inkling Of favorable develop
ments in that costly strike. which has
been under way since April /, was
known in the London markets during
the day; at least something Of the sort
would account for the strength of ster-
ling and firm tone Of Continental ex-
changes. The London rate was about
2h cents TO the pound higher than 1t
was on Saturday at the start Of bust
tensive fluctuations during trading
hours much of the gain was retained at
the close. Should a temporary agree
ment over coal mining terms be FOL
lowed shortly by really enlarged out
put Of fuel there would be ample rea-
son to take a more cheerful survey Of
European manufacturing and trade
prospects.
The cables reported that cotton mill
workers were returning in large num-
bers to spindles which had been idle
for several weeks. Cotton prices in
New York advanced 5 to 20 points net,
a moderate reaction in the final hour
reducing gains of one or two options
which had exceeded 80 points. Wheat
quotations in Chicago receded IL to 2h
cents bushel.