Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-03
MARKET TWO-SIDED
BUT TONE STRONG
Continued Upbidding Of Rail
roads Helped to Revive Flag
ing Interest Elsewhere

| New York. Aug. 3 While the trad
ing was perhaps little more two sided
today's stock market maintained a tone
nf consistent strength. There was ap-
parcntly considerable profit taking and
! rccurrent bclated liquidation in some OF
! tIc industrial spccialtics. The market,
/ however, exhibited striking lbsorptive
| powers and, generally speaking. Il
/ greater degree of stability than wit
messed in some little time. As in the
| preceding sessions. the undiminiShCd
strength of the railroad division sup
| piled stnbiliHing influence and at diff
tcrcnt intervals served to revive the
tagging bull speculation elsewhere.
Whether permanent or only tempo
rary. the general character of the op.
orations clearly indicated distinct
change OF heart on the part of the
trading contingent. Definite signs of
improvement in various industries and
the confident absorption of the rairond
shares unQucstionably got on the nerves
of the rcaCtiUuary party, who for ~
long had things virtually their own
way. Belief ,hat the Administration
plan for relief Of the railroads would
soon b" completed and tho more fnvor-
able character ot the June earnings
gay" fresh stimulus to the forward
movement IN tn" rail division.
Oflicial confirmation of tho price cuts
by th" big Steel Corporation to meet the
reductions of the independents by reason
of the moro cheerful state of mind Of
traders, was accepted rather as Il bull
argument than contrary point Of view.
This was based on the theory lower steel
prices would be certain to stimulate new
business, realization of which still re-
mains to be seen, as experience has
shown il is moro difficult 10 attract
buyers in Il declining market than when
they are shooting upward. The fact, ,
however, professionals were disposed 10
accept Il constructive view, was alone
Encouraging and bid fair to benefit the
market position.
The continued aggressive buying Of
the rails provoked broad covering
movement during the earlier operations
IL buying back of stocks became quite
general through the first hour. Buying
Slack"n"d later and prices yielded some
what when the renewal rate for money
was marked up to Jla per cent, point
advance since Monday, and compared
with the free offering of demand money
last week at 312 per cent. Government
Withdrawals and the reversal of tide of
funds TO the interior cut down the
available supply for stock market ac-
'DlIlill'Nllb a'uN' Nu'I HtUNt lue ulkutT
rate for the day requirements.
At the same time signs OF renewed
liquidation became apparent in several
Of the sr"rialtjes. suggesting advantage
was being taken of the strength Of
rails and others TO facilitate distribu-
tion elsewhere. Such tactics at least
were obvious in number Of shares
where it is common knowledge pools and
ether speculative combinations hal
over reached themselves. Included in
these soft spots was Pierce Oil pre-
ferred and United Drug, with both es-
tabliShing new low records. The first
named dropped 6 points to 10. In tn.
height Of the motor boom in 1910 this
stock sold as high as 10J13. General
Electric continued heavy. while Amcri-
can Sugar in rcCurrcnt sinking spell
cropped back over points. Other than
producing halting tendency. this in
dIvidual demonstration of weakness was
virtually without effect. being counter
balanced in measure by persistent
strength in other spots, notable in this
connection was the exceptional trlnnusS
of Baldwin Locomotive, which had the
earmarks Of slilful pool manipulation.