The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-26
FINANCIAL NEWS
AND COMMENT
Stock Market Has Another
Dull Day and Fluctuates
in Narrow Limits.
is STILL IN TRADING AREA
Steel Hits New High, but Loses
Part Of Gain-Tractions
Make Progress.
is STILL IN TRADING AREA

The stock market dragged through
another quiet and wholly unnterestng
session In Wall Street yesterday. with
stocks still fuctuating in the narrow
limits of the trading area In which price
movements have been confined for the
last fortnight. The news developments
over the week end were better, but they
were offset by the poor bank statement
on Saturday on the one hand and high
money rates on the other. which held
speculation in check again. What i'm
piovement there was in prices, therefore,
was due mainly to technical conditions
and special considerations rather than to
the news. AS a matter of fact. 1t was
mainly In the cotton and exchange mar
fets rather than in securities that the
improved British strike situation found
It's reflection. Those markets had gone
down on the British news, while the
stock market had held up firmly, so that
II was natural inference that what
ever reflection there happened to be
III consequence OF this news would first
be in those markets.
The rank and file OF the Wall Street
district, however was disappointed in
the fact that stocks did not respond bet
ter to the news. With the election only
week off, and particularly in view of
the fact that the money furry 8 gen.
orally recognized to be only temporary
affair. what this showed was that, aside
ftom the public utility and railroad
stocks, the market Is still depending
rIainly on the short interest for It's
buying power. The expectation Of a
favorable quarterly earning statement
to-day from the Steel Corporation acted
as special influence on the steel shares,
but IL was noticeable again that the rest
| Of the market was not disposed to follow
the leadership of the steels, although the
statement to be issued to-day Is ex-
pected to make even more favorable
showing than in the cases OF Republic
and Lackawanna, whose statements last
week were considered excellent. While
great interest attaches to to-day's state
ment, even more interest will be given
to the tonnage statement, which Wall
Street considers a better indication OF
future conditions than earnings.
The story was circulated In connec-
ton with the movement in Steel that its
directors would declare to-day an extra
dividends in stocks OF Liberty bonds with
| the regular disbursement. but this was
not taken seriously in responsible quar-
tiers. Steel got up to a new high, how
ever for the current recovery, but part
Of that gain was lost again in the final
I,eriod. The traction stocks made fur
tier progress at the outside. but the
edge of the enthusiasm In these issues
| was taken OH ldleT on IHc uay Wy a
sharp break in Third Avenue. rejecting
disappointment over the recent decision
In the cent fare case. The special
stocks were also subjected to further
| Liquidation. Coca Cola was picked out
for another drive On the theory that lis
directors would pass the dividend at the
meeting after the closing. The stock
made a new low record and closed at
practically the low of the day.
The furry in money reflected Satur-
Il days poor bank statements, which
showed a decline in reserve ratios in the
4 case of the Federal Reserve Bank and
! q deficit in reserve In so far as the
Clearing House banks were concerned
The renewal rate was advanced to per
cent from on Friday and got as high
as 10 per cent. in the final hour. While
the money situation is purely temporary.
4 is likely that Wall Street will have u
go through several more days OF tight
money, as there will be approximately
! $40. 0O0,0 of Government withdrawals
to-day Furthermore. after those With
| drawals have been completed prepare
tions Will be begun by the banks to meet
the November l interest and dividend
disbursements. which are to be unusually
heavy this year. The chances are, IL
vas declared in authoritative sources
yesterday, that In view Of these prepa-
rations money will not really become
easy again until sometime after elec-
ton. The recovery In sterling exchange,
following the Improvement In the British
strike, amounted to practically all or it'
recent loss and approximately 8 cents
from its low of last week.