Evening star., 1921-06-23
STOCKS ARE SOFT;
NEW Low ON STEEL
News Generally UnfavorabIe.
Market Makes Small Re-
c0very in Last Hour.
BY STUART p. WEST.


NEW YORK. June 23.-The rapid.
ity with which the recovery in the
stock market yesterday forenoon was
undone in the final dealings, gave a
pretty accurate forecast of what
would happen today. 1t showed that
a good part of the list had not, des-
pite the extremely low level of prices,
become thoroughly hardened to un-
favorable trade conditions; that hq-
uidation had not been completed and
that in many instances there was no
inclination on the part of so-called
INSIDE interests to come to the res
cue of their stocks.
Certain stocks have shown right
along through the trying experiences
of the last few weeks and they show
a low enough level to attract sub
stantial support. But the weak points
are still sufficiently numerous to pre-
vent this buying from making itself
felt in the market generally.
News UnfavOrable.
Nearly all of today's news was de-
lsf<csSing, although nothing happened
thai was not expected. Directors of
VirgirSa Carolina Chemical passed the
preferrs| shares dividend altogether.
giving nss c.i.er explanation than the
unfavorahae <SSuatien. certainly well
enough known, in the fertilizer in
dustry.
Various reports o.me in OF fresh
price cutting in rteH.. foreshadowing
large steel producers. probably at the
beginning of next month.
From one point of view this is not
an unwelcome development. Steel
consumers were never. satisfied that
the price reductions Of two months
ago were thorough enough. They have
been waiting and holding off for fur1
ther concessions ever since. It is not,
therefore, inconceivable that lower
schedule of quotations put into effect
now will start up new buying and put
a different aspect upon the steel
trade.
.Woolen manufacturers. it will be
recalled, got no response from their
first price reduction last September,
result. 1t convinced buyers that the
readjustment was sufficient.
New Loss on Steels.
The market was not in a mood to-
day, however. for seeing the favorable
side of anything. and steel stocks
went down to new lows. A record low
figure of 11A cents a pound reported
for crude rubber, as against the So
cent high of war times. gave a
stronger Impression than ever OF the
losses incurred by companies which
have had crude rubber as the prin-
cipal item in their inventory. Stocks
like United States Rubber and Good
rich common and preferred were
among the weakest.
The Motors.
On the denial of yesterdays trou-
BILE rumors regarding the situation
in Pierce Arrow, the stocks had a
fair rally, but could not make much
headWay against the extreme. weak
ness in other members of the group.
1t was officially stated that the COM
pany on April 80 last had quick as
rent liabilities of ss.379. 900, and that
the bank loans of s6.65o,00o were by
no means up to normal. Business is
admittedly poor, but Pierce Arrow
finances are sound.
Willys- Overland preferred was not
helped by the news that the related
WHY'S corporation was in the market
for s20.00O,s00 loan. The stock
broke badly. getting back to last
years lowest.
Those familiar with what is going
on in Chandler said that it was not
surprising for a stock, in such mar
ket, to get down to where !. sold
TODAY. They attached no significance
to the decline beyond the Well known
poor state of business and the upset
condition in the market generally.
While there were some inside buying
orders on a scale down. they were not
enough to stem the selling movement.
Studebaker. reaching 20. ran into the
same strong support that has been IN
evidence right along.