The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-06-19
Result Is Outcome of OAR
ing, Successful Bear
Raids. ~
IDENTITY is KNOWN
Onslaught Brings Contraction
In Security Values Running
Into Hundreds Of Millions.
BY WALTER Il. BROWN.
editor New York Commercially

NEW YORK. June 1S.-By far
the most important feature of the
past week has been the demoraliza-
ton Of the stock market This has
resulted not from any changes Tor
the worse in the general business
situation or from any radical politi-
cal Developments on the contrary
il has been the outcome of one or
the most daring and successful
bear raids in the history OF the
New York Stock Exchange. These
raiders, whose identity is whisper
ed. but who are not as yet public
" known. fosnd the market in
vulnerable position, first through
lack of outside support. and second
because those who might be ex-
pected to support it in such an
emergency have been largely engag-
ed in more legitimate financial OPP
eratfons than mere stock jobbing.
and have had to allow the market
TO take care Of itself. The result
has been a contraction in security
valves rIrnniru iHt~ 80 N'''''-" <
of millions and possibly beyond the
bilnOn mark.
The fortunes of many innocent
investors have been altered and
the fleet upon the lives and destinies
of people everywhere has been
widespread
One effort of these operations has
been distinctly noticeable and that
is an impairment of business con-
fidence lust at time when IL was
beginning to reassert itself. Per-
haps those who have been conduct
ing these raids have not thought
Of these things, from the moral
standpoint at least or il they have,
il has been in a detached. imper-
sonal way. as part of the game. The
full story has not been written as
yet. and may never be known. but
as il appears on the surface it
is a record of cold FLOODED manipu-
lation that brings back to mind
Thomas L. Lawson's description of
what he called ''frenzied finance"
Mexican Petroleum Made Target.
The stock selected as the instru-
ment for these operations was Mexi-
can Petroleum. Just why, is not
yet quite clear. Even this was
daring proposition. for the floating
supply Of this stock is presumably
less than 100000 shares, and is fig
ured down as low as sixty thousand.
Yet day after day the transactions
have exceeded this total. The hnal
settlement has not yet been reached,
but there is every probability of still
more interesting developments %
come
Among the subsequent happen
ings has been a raid upon tobacco
and auied stocks which could not
be explained on any logical basis.
II the gossip OF the street is to
be relied upon. this was in the ma
ture Of = punishment for those who
are pt0minently identified with
these interests for having the
temperity to come to the aid of
the oil people. Next it was stated
that tho equipment shares were TO
be raided as an attack upon an
other group of capitalists. and the
raid followed according to sched
uIe. There have been wild swings
in values. even of stocks of con-
Germs that have already readjusted
their bushes to new conditions and
were in sound financial position.
General Business Improving.
And while all this has been hap
psning in the stock market the gem
sral business situation has been
steadily improving. Banking slack
water between the ebb and the flood
tides. The second quarter now clos
ing has shown the turn of the tide
even though the movement at times
has been hardly perceptible. Now
the third quarter is expected to give
real evidence of the turn, while
the fourth quarter should see re-
covery well under way. 1t is. Of
course. possible that new factors
may be INTRODUCED to alter this pro-
gram to some extent. but they can
only deSy-it- The tariff bill, for
instance,-wAish should have been
reported out Of committee by this
time. has been delayed, but the fact
that it Is NOT yet reported is fav-
orable-rather than an unfavorable
feture. 1t indicates more careful
prepa ALTON, while the administra-
tive features of the bill, which have
already been tentatively announced
indicate that there is to be some
elasticity allowed for 1t so that 1t
will be possible for us to bargain
with those countries with whom 1t
Is to our interest to show considera-
ton. It has been feared that 1t
was the intention of Congress to
erect an impenetrable tariff wall
which would have the effect of not
only keeping imports out but our
erports in