The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-08
FINANCIAL NEWS
AND COMMENT
Stocks Erratically Fluctuate
and Early Show Highly
Irregular Tendency.

The action OF yesterdays markets
showed once more how difficult 1t Is
to apply general explanations to price
movements from one business session
to the next Stocks fiuctuated mainly
along lines similar to those OF Monday,
highly irregular tendency developing
early in the day with both strong and
weak spots. but grain quotations suf-
fered reaction greater in extent than
the preceding sessions substantial ad-
vance and cotton dipped downward un-
der what looked like a flow of realiz-
ing sales. In the foreign exchanges
in stocks, sterling receding ga cents in
the forenoon under fairly heavy vol
ume of offerings, with a sizeable recov-
cry later. while several continental rates
continued to pursue the upward course
which began fortnight ago. 1t seems
probable now that what has been help
ing the Argentine rate all along is the
shipment Of Indian gold to New York
by way of London In what is prac-
tically four cornered transaction for
the liquidation of British credit fall
ing due at Buenos Aires at the end of
the year. Silver declined to the low
est price since March 10, 1918, the quo
tation being 42as pence an ounce at
London and that reaction had a natural
result in declines of to cents a unit
in Chinese exchanges.
In considering all of the markets
stress must be laid on the speculative
operations which have been in evidence
all along. Last week, when the for
eign exchanges were heading upward,
1t appeared as though the easing ten
dency of money rates had much to do
with the recovery But money quota
tons are not much flrmer and yet the
exchanges have become uncertain in
their movements, and the chances are
that active traders have been busy
seeking to guess the turns in market
swings. The same application may be
made to grain and cotton and yester-
days stock market developed plain
traces Of professional attention to GER
tain industrial and railroad issues A
rise of more than points in Texas
Pacific Coal and Oil shares suggested
hasty purchases because of news that
the company's assets in Government
estimation were carried on the books
at figure some $1,000, 900 lower than
the management had fixed upon. At
a time when the Treasury is naturally
anxious to conserve all sources of tax
alton it might seem like a curious event
to see the Federal experts mark up the
amount upon which a corporation can
calculate tax reduction. But the in
come tax law provides for adequate ap-
praisal of corporate property and the
step indicates the application of the
statute in fashion not discomforting
to the financial community. At the time
that that stock and few other promi-
nent issues, including Lehigh Valley,
Reading and Mexican Petroleum, were
/ dQNdIClHb pItSSuIe was per-
sistent among certain automobile, min
ing and manufacturing shares, with the
net result of n highly ragged list of
prices at the end of the day.
| Call money remained unchanged at
| per cent. and more than enough was
offered to meet the demand. The course
Of both call and fixed period funds has
been made somewhat obscure by the
coming mid-month demand. and in that
connection attention needs be directed
to the pending offering of $500, o00.o 900
of Treasury certificates which in the
main will take the place of paper ma
turing on December 10. The interest
rates Of and 5% per cent. for one
year and six months issues. respectively.
are what would be expected on such
substantial borrowing 81 this season.