New-York tribune., 1920-10-27
Tight Money Again
Represses Activity
I'm Stock Market
Trend of Prices Irregular,
as Professionals Domi-
nate Trading: U. S. Steel
ReportMeets Expectations

Fluctuations in the stock market
yesterday were readily explainable, but
without broad meaning. The temper
ary dearth of funds available for call
loans compressed the volume of ac-
tivity to such an extent that the day $
transactions, which were less than
400 900 shares, represented little moro
than the give and take Of professional
operators.
When renewals were made at the
money desk at the Stock Exchange
the rate was per cent, the highest
since October IS, when the Anglo
French loan was paid off and i'm
portant Treasury operations We're
completed Money conditions again
dominated the course of the fuX of Sc
curity prices. At the opening prices
tended fractonally upward, but the
demonstration of q continuation Of the
temporary stringency halted enthusiasm
and stocks for the most part re-
acted for a time. For the rest of the
day the trend in the extremely narrow
market was exceedingly irregular, as
stocks responded to special influences
The Treasury, which withdrew funds
on a large scale previous to this week
from the New York banks, yesterday
took away $2S,S00, 900 more, and it
became known that $16,000,000 addi-
tional Will be called tomorrow, leav-
ing less than $30,000,000 of govern
ment deposits with the banks here.
In view of the recent repetition of the
criticism by the Comptroller of the
Currency of the call loan policy of
the New York banks, it is interesting
to observe that the present high rates
are considered mainly q reflection of
the acts of the government department
of which the Comptroller is o men,
ber. The government Withdrawals
coming after the Clearing House banks
had reported the largest deficit in re-
serves of the year, upset the situation
temporarily, but the funds withdrawn
do not disappear bat soon flow back
into banking channels However
there is loss of at least 13 per cent,
as the banks will have to carry re-
serves against the funds as they re-
turn in the form Of deposits of pri-
vate corporations, firms and individ-
uals who received payments from the
Treasury. It is likely, too, that some
of the funds viii move into other CEN
ters. Call money closed at 10 per
cent.
Together with the repressive in
f1uences Of the money market. the
market confronted other adverse in
iuences. The Coca-Cola Company de
ferred dividend action, and the Cen
trail Leather Company, in its report
for the quarter ended September 30
gave an exhibit Of the extent of the
recession in its industry by announc-
ing deficit for the quarter of $7.556.
W.. These evidences of depression
merely represent the kinds of things
that the stock market has been long dis
counting in the decline of the last
year, yet the actual publication of the
details often involves shocks, never
theless.
But the movement OF stocks was not
downward, but irregular. There were
Instances of strength, as we'll as ex-
ampIes Of Weakness The fluctuations
were within trading area, and did
not swing far in either direction. After
the market closed the United States
Steel Corporation ISSUED a quarterly
report which was up to the best ex.
pectatlons. 1t revealed net earnings in
excess of 48,000,000, gain of $4,000
Ooo over the same period year ago
ana OF 100000 over the previous
quarter. This excellent statement Of
earnings, and not the absurd rumor
that the corporation would declare an
extra dividend, was anticipated bv the
recent strength Of Steel common and
tne steadlness Of the other steel securi
ties. OH stocks, too, held up we'll bnt
some of the leather, motor and rnh.
Der stocks moved lower