The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-17
FINANCIAL NEWS
AND COMMENT
Trading in Stock Market Is
Given Over to Profit Taking
on Weeks Advance.
REACTION ONLY NORMAL
Clearing House Statement Re-
fleets Decrease of Surplus
Reserve.
REACTION ONLY NORMAL

Trading in yesterdays short session OF
the stock market was given over again
TO the realizing Of profits on the week 5
advance. There was nothing spectacular
about the selling, although twas per-
slstent and led to declines averaging a
point or so all round In the leading
speculative issues The sugar shares,
shipping stocks and specialties went
down rather farther than the rest OF
the market for srecial reasons and
liquidation broke out afresh In Sears
Roebuck. which has been held rather
firm recently pending the sale OF tho
comnany's note issues. But except lin
those stocks the reaction was a purely
normal affair, due entirely to profit
taking and evening up Of commitments
for over the week end. AS on the pre-
ceding day it was noticeable that &C.
tivity slowed down as prices declined, a
circumstance which Is always regarded
as indicating strong underlying mar
ket position.
The decline was accelerated probably
good deal by the beginning OF the
British miners strike but II IL had not
been this II would have been some other
consideration. because the market was
due for n technical setback anyway
That the financial world Is not worry
ing a great deal over the British strike
situation was Illustrated again by the
steadiness Of sterling exchange. which
would be the first thing to break II
there were any question as to its out
come. Sterling got down below the
SS.46 mark, but II was not the sort OF
decline that indicated alarm on the part
of banking interests The decline also
continued in the cotton market. with fu-
lures going 70 new low records for the
year. 1t Is regarded. however, as a bull
ish influence rather than a bearish one,
as II will mean eventually the release OF
much money that is tied UP In the 'cot-
ton crop financing. It also means that
great deal less money will be needed
this year to finance the new crop.
While the general market was declin-
ing special stocks again resisted the
downward movement making progress
on the up side. Among the most frofl 7
nent of them was American Linseed the
stockholders of which exrect shortly
an announcement regarding the deal
whereby the company is to be taken over
by British interests. Philadelphia Com
pany United Railways and Readir@
preferred also resisted the decline. The
peculiar feature Of the Reading stocks
was that while the preferred shares adj
vanced there was heavy selling of the
common again. There was further
liquidation of the marine stocks, and the
sugars were inclined 10 he weak again
the selling OF the latter being due to
the unsettled conditions In Cuba and In
the sugar trade in general The selling
in the marines was also due TO foreign
liquidation. notably from Dutch sources.
The bank statements reflected only tho
worst features Of the huge transactions
put through on Friday but not cleared
until Yesterday. Consequently true
picture Of the banking position Will not
be stated Officially before next week.
AS II was the Clearing House statement
showed n decrease in surplus reserve of
$40 600 900. accounted for by the rise
OF s1o6 600 600 in deposits. which was
offset by only small increase IN cash.
been much comment on the big excess
MARGIN OF loans over denosits. and the
statement yesterday indicated that the
gap ia beginning 10 be closed up The
Reserve Bank sta showed little
change in reserve ratios. notwithstar ~
Ing the prepa Ntions for the Anglo
French maturity and other transactions.
There was net change in bank bor-
rowings NJ only s3 600, 600 Federal re-
eerve notes expa nded s11 non. 900. The
switching of arrivals Of earmarked gold
from this district to other districts was
offset by an Increase II. gold through
the settlement find