The New York herald., 1921-03-29
FINANCIAL NEWS
AND COMMENT
Most Industrial Stocks React
While Sears -Roebuck Gains
and Commodities Rise.

\ That part Of the professional stock
trading element which opposed the adj
vance Of prices last week found mate
rial in yesterdays developments much
to their liking and fairly abrupt reac-
tions occurred in the Industrial list.
The events OF principal Importance We're
the passing cf Sears. RoebucIS s Co.'S
common stock dividend, together with
the elimination or reduction Of several
other dividend distributions. and gossip
about other changes to come before
long. The market acted very much as
It did in the fore part or February,
when dividends were going by the board
in rapid succession. In surveying the
progress and results TO date in the great
after war readjustment period 1t is one
thing to take the broad view that a
shrinkage Of returns to stockholders was
inherent in the slump OF business OF the
winter. and therefore was discounted In
the recent fall OF prices; it Is something
else to imagine that the market made
full allowance for this during the No
vember to February decline. When deal
/ ings are largely IN the hands OF in and
out traders, the fact has been demon
strated that considerable selling pres
sure nearly always is aroused by divi-
dend cuts at the moment that they are
announced. Stocks directly affected fire.
quently lose ground before directors act
and the unsettlement caused by their de-
cision is found elsewhere. Thus. while
American Locomotive, American Wool
len. Corn Products, Crucible Steel. Mex
ican Petroleum, Industrial Alcohol
United States Rubber and others were
receding from IL to points. Sears
Roebuck turned upward and closed with
slight net gain.
Stocks were directed almost wholly
by consideration OF domestic happen
ings. The foundation for successful
bear activities was laid in the upturn
Of last week. which seemed TO have
one of its main supports removed when
the State Department elected to hold
aloof from overtures of the Soviet Lead
ers for the opening OF trade relations.
1t Is not easy for followers Of stocks
who have faith in signs Of business inn
provement in some directions to main
tain a position when dividends are dis
appearing here and there. and so 1t
was reasonable to believe that halt
occurred in the moderate amount OF
buying for tho rise that appeared last
week. The Street found no new In
centive for market action IN informa
tion received from Europe. for the in
effectiveness Of the scattered commo-
tions in Germany We're properly sized
UP over the week end and the repara-
tions matter remained In an indefinite
and uncertain state.
The remarkable gain of AZ per cent.
In the New York Reserve Banks cash
ratio was evidently submerged in last
weeks reports, which showed that only
one Of the other eleven Reserve banks
had improved its position The fact that
the call loan rate was again 6ia per
cent. for most of tho days borrowings,
with the usual easement to per cent.
IN the afternoon, reflected the tendency
that has caused many expectations OF
really easy money to be altered in the
last fortnight. The weeks heavy ex-
pansion Of reserves in New York
showed that indebtedness here was be-
Ing reduced rapidly, but in the recent
past It has been seen from time to
time that a lowering or money rates
causes funds to flow from this centre
and the complete reserve system rather
than one district is now being studied
for real indications Of the monetary
position.
initial dealings in July wheat in
Chicago $1.25 a bushel, contrasted with
s1.5s1a for the March option. and $1.4sA
fsr the May one. told its own story Of
speculative calculations on the future
price movement. The grain market,
however. closed higher. and there was
a moderate Improvement of cotton.