The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-10
FINANCIAL NEWS
AND COMMENT
Prices Generally Move Within
Narrow Limits in Dull
Stock Market.
SMALL GAINS ARE MADE
Local Reserve Bank Reports
Drop of Ratio of Reserves
to Deposits.
SMALL GAINS ARE MADE

Another duh. professional and mean
ingless session IN tho New York Stock
Exchange took place yesterday. when
stock prices moved generally within
narrow limits During the first hour
weakness and reaction were apparent.
but despite the prevalent bearish senti-
ment recoveries from the days low
points were noted and several fractional
net gains were recorded in the active
list. Special features were continuation
Of weakness in Texas and Pacific, which
sold as low as 1915 for a loss of AS
points. and strength in Mexican Petro-
| ieum. Pan American Petroleum and
| Crucble Steel. which are reported to be
under accumulation. On the whole the
| days results were a disappointment 10
the bears. who had anticipated wide
| open break following the news develop
ments, which indicated that labor was
being laid off in different sections Of the
| country and that price defiation was
| being continued at q rapid pace The
lethargy exhibited yesterday may be
1 explained by the approaching holiday
| on Tuesday, which isolates Monday as
a speculative day. In some quarters
| transactions are expected TO continue
| to be unimportant until Wednesday.
Outside OF evidences of trade recess
sion and labor liquidation there were
no new, factors to influence the market
before the close. although the steel ton
mage statement. which appeared at noon.
was distinctly less unfavorable than
trade experts had anticipated. Against
an expectation of a decline of 100000
tons in untitled tonnage, the actual de-
- I,, a
connection it should be noted that the
active steel shares showed fractional net
gains for the day. The Clearing House
bank statement disclosed an increase in
surplus reserve of $47,243.S30, making
the item S36,199,aS0, in contrast to a
deficit of S11 ,044,S50 a week ago. In
| order to make chat showing the banks
had to borrow approximately 100000
coo from the Federal Reserve Bank.
Consequently the apparent improvement
In the position of the Clearing House
banks s superficial. because 1t caused
material declines in the reserve ratio OF
the Reserve Bank. Loans. discounts
and investments expanded $4,000. 900,
indicating that local banks had started
TO make loans in connection with. the
movement of cotton.
The local Reserve Bank reported A
falling off from ALI per cent. to 3S.5
per ceent. III the ratio oil totBl reserves
TO deposits and reserve note liabilities
combined and from 42.6 per cent. to 800
per cent in the ratio Of reserves to net
deposits after deducting 40 per ceent.
for gold reserves against reserve notes
in circulation Not only was there q net
loss of $4,000, 900 in gold reserves but
gross deposits increased more than $685.
600. 900 due to increase of member bank
borrowings from the Reserve Bank Bills
discounted, secured by Government war
obligations. were S509. 644.934, against
s4T6,174. 900. and those secured by COM
mer cial paper were s434,575,932. against
$37S ,953,000, making an increasee In
member bank borrowings OF 100000, GOO.
A week ago the local Reserve Bank was
lender of $4,000. 900 to other reserve
banks That total was repaid during
the last week
Despite the fact that the local Re
serve Bank statement was unfavorable
from q market point of view. the real
test is the consolidated statement To-
the twelve Reserve banks.
The foreign exchange market was
quiet steady and without feature. Cot
ton was under pressure. Grain markets
were featureless.