The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-16
FINANCIAL NEWS
AND COMMENT
Stock Market Makes Il Fairly
Good Showing in Spite Of
UnfayOrable News.

Considering the unfavorable character
of many of yesterdays developments ar
fecting industry. the stock market gave
a fairly good account of itself. There
were evidences Of fresh liquidation. an
event not surprising in view of the pass
Ing of several dividends and further In
dicatlons OF decline in the steel trade
activities but most OF the days business
appeared to be in the hands OF profess
sional traders. Naturally. those who had
seen stable profits accrue on purchases
made on Tuesday were inclined to take
profits and the work Of sellers for the
passed. But sharp drives at particular
issues, so plain last week. did not have
part In the days transactions. and It
was noticeable in comment of the market
voted TO constructive matters likely to
happen with the turn into the new year
than had been the case of late. The
price front was very irregular at the
close: It was possible to select stocks
which were decidedly weak and others
materially stronger than the day before.
Steel. rubber, oil and some railroad
issues were to points down: other
rails scored good sized fractional adj
vances and a number of industrial spe-
cialties moved upward with vigor.
One factor which promoted ideas OF
improved conditions for securities lit
tie later was the action of money rates.
The heavy transactions incident to in
come tax payments. the retirement of
Treasury Certificates and the payment
of Liberty bond interest were put through
with all the ease expected and the fact
that bank deposits gained. and will gain
more in the next few days. was re-
Elected in an easement of the call loan
rate from to per cent in the after
noon. Time money rates were reported
somewhat easier. and the financial COM
munity Is looking forward to further
relaxation in fixed period funds In the
near future. News of pending new Sc
curity issues of large proportions show
that corporations in need of working
capital will shortly be pressing upon the
market taking advantage of expected
ease of money and an easier tone OF
credit as we'll as the investment demand
that normally appears after January 1.
In connection with reference to steel
trade reviews to the problems Of lower
ing manufacturing costs. It was found
that independent producers are getting
programme of wage reductions under
way. Such an event is entirely in line
with what has been going on in the in
dustry and fully in keeping with the ex-
perience of the textile and other trades.
/ II is probable that wage cuts will come
! forward with more and more frequency
In the next few weeks. and while yester-
days information about plans of the
and one or two other concerns of smaller
size had 4 depressing influence upon Sc
curitles. the matter Is to be viewed from
another angle. looking ahead. Steps in
point the way toward better things later
on, whether It be deflation of prices OF
OF wages.
Sterling exchange continued to move
forward. gaining u cents to n fna.
quotation OF 3.fs for checks. Holland
exchange was flrmer than for some tins
past. presumably disclosing the remit.
lance of funds received through sales o.
securities this week. The sharp fall o
Royal Dutch on Monday was charged
largely to selling from abroad. Scandi
navlan rates again advanced and tn
whole market was firm with a few ex
ceptions.
The increase of 100000 bushels II
the Government wheat estimate. ISSUED
on Tuesday afternoon. disturbed tn
wheat futures market, declines extend
ing from TO more than points. Thu
highly speculative character OF this mar
ket makes the outlook for day to day