The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-23
SHORT SELLING IN
OILS SPREADS AS
REACTION GOES ON
Trading More Active,
With Market in Hands
OF Professionals.
INDUSTRIALS LOSE
Speculative Issues Lose From
l TO 2 Points, With Rails
Fractionally Lower.

NEW YORK. Dec za-ReaetIon
continued on the Stock Exchange.
short selling being apparent in the
OILS from the start and extending
TO other groups as the day wore
on Trading was more active. but
the market was still very much in
the hands Of the professionals. Al
the close many speculative Indus=
trials showed losses Of from / 20 /,
points and the rails were fraction
ally lower. A heavy tone appeared
also In the bond market Call
money opened at 6 per cent. and
was lowered 20 5h per cent at
the start of the second hour and
TO per cent during the fourth
hour.
Size of short Interest.
There is always room for q Diff
ference Of opinion on the size OF
the short interest in stocks. but IL
was never more striking than az
the present time. Many of the trad
ers who are uneasy about the mar
ket base their feelings on q theory
that the long rise In stocks from
the last week in August and espeS
cislly the last month OF the move
ment cleared out a substantial part
of the short interest and thereby
left the market with a weakened
founda ton They recall by way pt
example what was done with Mex.
can Petroleum. Baldwin. United
States Steel. United Fruit, and other
active stocks. only a short time
ago. There are. on the other hand.
many market observers who are
able to quote figures TO show that
shown a surprising increase during
the past three weeks. The fact that
the market was buoysnt while a
great part OF this new short sc-
count was being extended is e1-
planned by the insistent investment
demand which prevailed earlier in
the month. One house which does
a large stock loan business stated
that. after looking over its list last
night. a call for the return Of some
lines OF stock was thought sdvis-
able.
Uncertainty Factor.
Additional proof that uncertainty
is a more potent market factor than
known facts was offered in the case
Of American Sugar Refining stock
today. The common made its low
record IN October in connection
with rumors Of a bond issue.
few days ago IL weakened again
on a revival OF that story. Yet
when the Street was confronted
with Official news OF an Offering
Of sSo. coo. 900 bonds before the open
ing this morning traders began -
think better OF American Sugar
common as a favorable purchase.
The stock closed at 5oh yesterday.
II opened at 5OH today, and was
bid up quickly 10 So. The general
feeling in the Street was that the
American Sugar Refining Company.
having swallowed a bitter pill. now
stands a better chance OF recupers-
ton. The blasting Of a hope which
the speculative community had
built up without any official en-
couragement was reflected in
sharp break in Butterick stock soon
after the opening this morning. The
stock closed at 80 yesterday ard
went TO 2sS before finding support
in the first hour today. On the
strength OF the last earnings state
ment which showed a remarkable
recovery in earnings, traders grew
accustomed to hearing that the
company would resume dividends az
today's meeting. But the directors
met and decided that the time was
not yet appropriate for making =
payment.