The New York herald., 1920-12-25
FINANCIAL NEWS
AND COMMENT
Pre-Holiday Trading in Stocks
Is Mainly Professional and
Trend Is Irregular.

Stocks were dealt in yesterday in a
rather perfunctory fashion. trading being
mainly In the hands Of traders who
switched from one side TO the other in
search Of quick profits. The turnover.
not much more than half as large as on
Thursday, was reflective of the pending
Christmas recess. Outside of another
sharp fall Of Replogle Steel, for which
the demand was decidedly thin. the days
business was devoid of feature. This
stock dropped precipitately 19 points,
ana at the end of the session the net
decline was In excess Of 10 points. speak
ing rather eloquently of the effect which
weakness earlier in the week had had
upon the speculative following Of the
issue The market started OFF with some
thing Of the preceding days buoyancy in
evidence. but the buying movement be-
gan 70 lag within a quarter hour, and
afterward the price trend was highly
irregular. Changes in the final array OF
quotations ran all the way from gains OF
to 21s points to declines of equal
amounts. steel and rubber issues were
inclined downward, and several petro-
leum shares displayed weakness in after
noon transactions. Call money lent at
per cent. straight through.
The last week contained momentous
market events. and while liquidation
made a great deal Of progress toward
the ultimate stability Of prices. 1t was
not possible to determine whether or
not the more depressing influences had
been discounted. While little discussion
was heard publicly, it was evident In
the private comment of bankers that
close attention was being paid to the
situation of the Goodyear Tire and Rub
ber Company. The company's financial
problems have been known for some
time. The bankers have worked with
the management TO provide for future
requirements, for It has been felt that
serious embarrassment for this great
factor in the rubber business would be
highly disturbing to industry generally.
The action Of an Ohio court in quash-
Ins a step toward receivership appears
to pave the way for united banking ac-
ton, and the entire financial community
will await with a great deal Of interest
the completion OF plans now under way.
The feeling is widespread that IL indus
trial concerns in need of working capital
and funds for other purposes may be
helped along for the next two or three
months, reawakened demand, due to
depleted stocks. will work out its own
solution Of some important business
problems.
Because OF the holiday to-day the
week end bank statements were Issued
yesterday. The Federal Reserve Bank
was able to report another gain in the
ratio of cash reserve TO note and de-
posit liabilities, from S9.1 per cent. tc
! 1913 per cent. AS was expected in the
second week following a Government
settlement date, borrowings by mem
Der banks increased, the net growth OF
rediscounts being slightly more than
s54.000.000 and net deposits expanded
s37,0o0.000 over the total week be-
fore. The outstanding Federal Re.
serve notes increased ss.300.O0 bui
this growth OF deposits and circulation
was more than counterbalanced by
large gains of gold Through accu
mutation of gold and gold certificates
and through operations OF the intra
bank settlement fund the Reserve Banl
at New York had s62.s00,O00 more thar
in the week before. and total reserves
were enlarged by more than $50, 900. 900
These items spoke well OF the flow o
funds from the interior to New York.
The New York Clearing House in
stitutions reported a growth of s22.
337, ,o00 in excess reserves, citing th'
statement OF actual condition, and thi
was accounted for chiefly through /,
gain of s2oeO0.o0O in reserve credit
at the Reserve Bank. After increas
ing heavily in the early days of tn
week: loans were largely reduced at tn
end, the decline from the week befor
being no less than S36,2oO.0OO. De
mand deposits declined $4,000 900.