The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-07

FINANCIAL NEWS
AND COMMENT
Broad Drop of Prices in Stock
Market Follows Display
of Early Firmness.
LEHIGH VALLEY REC0ILS
Call Money Stands at z Per
Cent.-Commodity Mar
kets Show Advance.
LEHIGH VALLEY REC0ILS

A broad and fairly sharp decline
of stocks yesterday following a display
ce irnness in the first business hour
indicated that fundamental conditions
of credit and industry were receiving
more consideration In speculative cir
particular securities Otherwise, more
might have been expected in the way OF
a price upt,rn from the Supreme Courts
reversal of the lower court in the Le-
high Valley coal case. The immediate
response to a. decision which in more
cheerful times would have suggested an
early melon cutting through segrega-
ton of the company's interest in coal
land holdings was point rise in
Lehigh Valley shares. But the stimulus
was lost shortly and the stock trailed
along with the rank and file of issues
in progress toward lower levels. At
the end OF trading 1t was not much
changed from Saturdays final price.
while the more prominent rails and in
dustrial issues were l point to points
lower than at the close of last week.
The attitude of the highest court toward
the Lehigh Valley situation was not sur
prising to interests which had followed
the course of reasoning in the Reading
case. decided some time ago. Viewed
as a stock market factor, 1t must be
remembered that the market setting is
quite different from that of the period
what akin to the results of asset segre-
CATION. were eagerly seized as signal
for bidding quotations upward
Yesterdays market acted as though
traders were unready to seek for con-
structfve influences behind stocks. And
experience of both recent markets and
others of the past when business was
unsettled shows that situation OF the
sort makes for price reaction. Senti-
ment was not improved by abrupt de-
clines of one or two industrial issues
which had become vulnerable through
the possibility Of reduced dividends oil
for other reasons making for a restricted
demand. All the known facts of produc.
ton and distribution Of goods indicate
that the matter Of dividends will come
forward with increasing interest in the
early months of next year.
Call money stood at per cent. yes
terday. The week end bank statement:
|
their position in advance of the demand:
certain to come upon them at mid
month A decline of S35.69o.000 In golt
reserves at the New York Reserve Bank
mainly through operations of the intra
bank settlement fund. showed that Other
institutions were calling upon the larges
Eastern bank for accommodation. Nor,
than a little interest Is attached to the
Governments results in collecting th'
final instalment Of income and excess
profits taxes. for Treasury operations II
the loan market in the first quarter o.
1921 will be shaped partly by the pro
ceeds of the December payment. i
seems probable that the banks will b.
asked to assist generously some corpo'
rate borrowers which have need fol
credit at a time when they find casf
comes in only slowly through the sal,
of their products.
Cotton continued the advance whicf
began early last week and rapid shor'
covering movement sent grain quota
tions higher on the Chicago Board o.
Trade. The wheat options advanced
more than cents a bushel and Decem
Der corn rose AZ cents. Those move
ments could be explained In part by wha
has happened In the last five weeks. fol
such radical declines as those of No
vember would have a natural offse
| sooner or later.