Evening star., 1921-03-21
NEWS Of DAY IS
MORE FAVORABLE
Stock Market Nervous, But
Foreign Affairs Give En-
couragement to Street.
by STUART p. WEST.

NEW YORK, March 21.-The pre-
liminary returns from Upper Silesia,
although admittedly quite inconclu-
siye. contributed the most important
new influence in the financial situa-
ton today. Regardless Of sentiment,
the markets of the world were ready
to look upon a Polish victory as dis
tinctly unfavorable to the prospect of
an early settlement of German repara-
tions. at the same time raising a
good deal of fresh uncertainty as to
how the allies would collect the in
IDENTITIES upon which they are count
ing. France in an especially critical
manner, to settle their financial prob
lens at home.
Conversely they were ready to con-
clude, with Germany retaining Silesia,
that this would have an important
bearing upon the whole German atti-
tude toward reparations, fastening
very materially an agreement.
In many minds the Silesan result
means the whole difference between
the disappearance of Germany as n
great commercial nation and her re-
cuperation. which. by all practical
men, is recognized as necessary for
the wellbeing Of international com
merce.
Exerts Favorable influence.
SO, while cable reports received dur
ing business Eours still left room for
much doubt. the indications of Ger
man success yesterday at the polls
had a favorable reaction in all the
markets. Sterling went to a new high
for the current movement. Francs
and marks swung along moderately.
cotton options, the most concerned of
any of the commodity market rose
fairly sharply
Public securities traded in on the
various exchanges were most of them
higher. Where the Silesian news
counted on the stock exchange was in
the nature of helping steady the mar
ket against heavy profit-taking sales
The reduction in the rate on stand
ing call loans to Y per cent-the low
est in two monthS-following the re-
markably favorable federal reserve re-
ports over the week end was like
wise a supporting influence of much
Importance.
The stock market. however, still in
the hands Of the professionals. gave
rather less attention to these outside
matters than to the inside situation
created by last weeks extensive short
covering and the comparatively rapid
rise in prices.
This element went to work on the
theory that a rection was due on tch-
nical grounds. and most of the day it
was conflict between these profess
sional sellers on the one hand, and the
operations of various individuals and
pools on the other hand that were in
terested in establishing higher prices
for number of special stocks
Pierce Arrow Strong.
Pierce Arrow took the lead in the
motor group today and. as usual. the
old story of buying for the account
of one Of the big men of the motor
industry was taken off the shelf,
busted off and trotted out for public
inspection. The story on previous oc-
casions used to be that General Mo-
tors was buying a controlling interest
IN the company. That was when Mr..
Durant was at the head of the Cen
eral Motors Corporation.
Lee Rubber Higher.
Lee Rubber got into new high
ground today on better appreciation
OF the nnancial condition of the com
pany. The annual report, which made
It's appearance last week. showed cur
rent assets at S4,2O7,529 and cnrrent
liabilities of only s666.2s1. a ratio Of
six to one. Instead of accruing in
ventory at fair market value"
ABOVE the actual level, the company
marked everything down to cost or
ac'ual market December 81, which
ever was lower. Outstanding crude
rubber contracts are at prices averag-
ing below the December 81 market
price.
These commitments are sufficient
1or siZ months operation, which gives
the company the assurance Of low
cost raw material for some time TO
come Additions and improvements
10 plant have been completed and
paid for, giving Lee Rubber a canac;tv
of 1000 tires per day. as against 1 O)n
at the end of 1919. Sales for last
year were the highest on record and
present operations are about so per
cent OF theoretical capacity. with sales
exceeding output