The Washington times., 1925-02-21
STOCKS DISPLAY
REACT|ONARY
TREND
Stocks, Bonds, Grain, and
Cotton Feel Effects of Heavy
Selling Wave
By W. s. COUSINS,
International News Service Financial
Editor.

By W. s. COUSINS,
International News Service Financial
Editor.
NEW YORK, Feb. ATTRACTIONS
airy tendencies were prominent in
all Of the principal speculative mar
kets this week. including stocks,
second-grade bonds, grain, cotton,
foreign exchange, and some COM
moditieS.
1t appeared rather as corrective
reaction to the marking up OF prices
in some markets to unWarranteo
extremes than as q reflection OF
trade, industrial and financial con-
ditions, for in all Of these there We're
favorable developments, not the
least important of which was the
increase in dividends OF prominent
Industrial concerns and the decline
In call money to 8 per cent.
Selling Movement.
The week opened with the heav-
lest selling movement that has been
seen since last November. Stocks
poured into the market from all
sections of the country, to be sold
at the best prices obtainable. There
were three main reasons for the
selling: The desire Of traders to take
profits (under the urgent eugges-
tons of commission houses1; the
necessity of reducing borrowings
against stock collateral; and the &C.
tivities of professional bears who
were quick to size up the situation
and to offer stocks In order to de-
press prices
The selling continued well into
the next session and the tide was
turned only by the strenuous efforts
Of the bullish leaders in Wall
Street, who bid up the Industrial
leaders sharply near the close Of
Tuesdays market and continued
these tactics into the following SEES
sion. It was evident that the bears
had overdone their 'hammering" of
the market, particularly in stocks
like Baldwin and American Wooden.
which had issued unusually poor
earnings statements for 1894. Bald
win snapped back Is points from
Tuesdays low, and with the aid
of strong forward movements in
Air Reduction and other special
ties, considerably changed the gen.
eral appearance Of the stock market.
Nevertheless, heavy liquidation
continued in other stocks, particu-
larly the oils, motors, shipping
stocks and specialties. United
States Steel and the independent
steel stocks were reactionary during
most Of the week.
Trading Slows Up.
The market slowed up in the late
sessions I'm preparation for the two
and-a-half-day intermission which
comes between Saturday noon and
next Tuesday, many OF the big
traders stretched the weekend to
three or four days and this account
ed for the decline in activity from
Thursday noon.
There was q revival of interest
n the railroad stocks this week and
many Of the active stocks in this
group received more attention than
at any time since the middle Of
January.
New Haven was q leader in the
low-priced stocks, its attractivenesS
being enhanced by the successful
completion of its refunding program
and its splendid earnings record
for 1924. Rock Island was popular
on revival Of reports that the South
ern Pacific is to take over and
merge this property. Atchison and
New York Central featured the high
priced rails. 1
The money market was eagerly
watched this week for signs of
hardening and the usual rumOrs of
higher rediscount rates at the re-
serve banks were taken more seri-
orsly because of the fact that long
term money rates are now one-hak
of l per cent above the bank rate.
But the decline In call money to
per cent removed apprehension
on that score.