Evening star., 1921-09-16
BU[[P00LS turn
TO STEEL AS LEADER
Find Progress to Higher
Prices Slow Under Bald
wins Pace-Financing.
BY STUART p. WEST.

NEW YORK. September 16.-The
three most important episodes in the
financial situation today were a still
easier drift in the money market, fol-
lowing the further improvement in
the federal reserve bank ratio. the
instant success of the twenty-five
million dollar offering of Canadian
National railway bonds. which proved
a stimulus to the entire bond market,
exchange by the steel shares-mainly a
reflection of the reports which have
been coming in of increasing busi-
mes: and rising prices.
1t was not that money and dis
count rates were actually changed.
on the part of lenders to do business
at the minimum quotations reached
recently. The commercial paper mar
ket was more definitely established
than 1T has been SO far upon a basis
where buyers were anxious for 6 per
cent, while sellers of the better class
or names were holding off for 5N
Along with this went larger offerings
or bankers acceptances and a ready
supply of call funds at Az per cent.
The principal significance attach
ing to the Canadian bond issue was
that a smaller return was offered to
subscribers than in the case of any
new security flotation so far.
That these bonds were promptly
oversubscribed on 6k per cent basis
was very striking bit of testimony
10 the upward tendency of the in
vestment market. 1t was Immediate
~ reflected. as it was counc to be,
in create: activity ana strength
throughout the general bond list.
Pick a New Leader.
Steel common, going through its
~
ment, and drawing along the other
steel shares. was the feature of the
day in stocks.
Yesterdays IS a ton advance in
sheet steel prices was a pretty good
indica tion that in this department of
the industry, as well as in wire and
wire nails. consumers let their stocks
go down abnormally low, and now
find themselves under the necessity OF
bidding up prices in order to re-
plenish.
Under the lead of the steels the
general market rallied. although the
inspiration for the upward movement
still came from pools and professional
operators With steel common, Beth
lehem b. Republic Iron and the rest
pushing ahead. there was consider
able shifting of speculative accounts
Bull Pools Strong.
Both bulls and bears agreed that
today would be the critical test of
action which started yesterday
would continue and mark the dcfiritc
failure of the campaign of the last
week or SO to hold. or the pools would
demonstrate their control and start
the list moving.
cal about the operations yesterday
and the day before in Baldwin Loco
motive. These had looked artificial
and the rise in the stock very much
forced.
It was necessary to get a more con-
Steel
Soon after midday heavy buying
orders were thrown into this stock,
ard as it went through it's previous
high an 'old-fashioned bull cheer
steel shares quickly fell
mo line and the whole market, which
aad worn a tired and halting look,
became once more lively.
Delaware and Lackawanna.
The jump in Delaware, Lackawanna
and Western stock was ascribed to
:he possibility of more favorable divi-
dend action than has been counted
upon. 1t has been accepted all along
dend that rate would be reduced to
10 per cent or s5 share. But at
present selling prices of the stock
:his assumption must apparently be
abandoned. If the Lackawanna di-
rectors should by any chance decide
to continue the old dividend rate, now
that the stock has been doubled, the
shares would. of course be selling on
q very attractive income basis for
such a high-class investment.
The Lackawanna directors are
scheduled to meet for dividend action
near the close of September.