The Washington herald., 1921-06-10
INCREASED ACTION
BRINGS SUCCESS TO
SHORT OPERATORS
Oil and Steel Stocks S6-
jected to Heavy Ham
mering.
CHEMICALS WEAK
Industrials Show Many Losses
At Close, Ranging from
/ to 5 Points. 1u-o
CHEMICALS WEAK

NEW YORK June s.-with ses
tivity increasing the shorts again
met with success in their operations
on the stock exchange OIL and
steel stocks continued ~ be heavily
attacked. but chemical Issues were
also features for weakness At
times declines running up 20 Z
points were forced ana toward the
close the Industrial list showed
many losses OF from 1 to points.
Rails were lower by substantial
fractions. Gail money opened--st-
sh per cent and was lowered ID o
at about o'clock.
Exchange.
Sterling started the day with an
other abrupt decline. again IN. re-
suit OF lower prices in the London
market Dealing there began at
s3.7th. or at about approximately
our level at the previous close.
Within the first two hours. how
ever. the quotation dropped TO ss-sS
with the supply Of dollars reported
as scanty TO a degree. Al thIs-
happened before the market Opened
on this side. and when tn. latter
occurred the FIRST trading was
around ,3.ss.
Money.
Following last weeks marked ex-
pansion, which was due 10 heavy
government borrowing 10 meet IN
terest payments. the Ban kof Eng
land statement shows a moderate
recovery. The principal chanEe is
a transfer Of approximately fS2U.-
900 from circulation to reserve de-
posits having increased by about
fl.20o.o0O. As a result Of these
changes. the proportion Of reserve
has risen from ll.S per cent TO la.
the discount rate remaining un-
changed.
British Trade.
British trade reports for Mey
meanwhile show q further sharp
shrinkage in the value OF exports,
the total for the month being f5e.--
100000, as compared with $1,000
900 In the previous month and El4O.-
100000 in the correspondinGmonth a
year ago. The shrinkaEe. further
more. has come principally in goods
OF British manufacture Import
are also reduced. but in nothing
like proportion 20 the drop in e.
ports. Thus Mays figure is fEe.-
100000. or only tt.ooo. 600 less than
that OF April. Excess OF imports
consequently stands at fss ooh 900
which compares with an average
Of fls.ooo.ooo during the first four
months OF the year end E27. 600 mo
in May a year ago. when q is re-
membered that the earnings Of
Fritish shipping are nothing like
those OF a year ago. Il becomes
clear that the coal srike is IN.
| nicting a most severe penalty upon
the nation and that u. together
with the world depression, have
| wiped out a substantial part Of the
great improvement which had been
| registered In the country's trsde
position. Since. moreover. a revival
in trade probably will be renected
in increased importstions OF raw
materials. Il may be readily under
stood why many well-posted Brit
ishers expect a reaction in sterling
exchange. Such considerations also
60 far 10 explain why the Germans
should wish 10 make prompt provi-
sions for meeting dollar payments
on their three months reparAtisns
bills
A repayment Of 100000 francs
BY the government is the feature
Of the Rank OF France statement
4 Advances TO the state now stand at
| 25t billions. which represents a
new low for the year and a reduc-
tion OF l.2 billions from the hIrh
point since January l.