The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-12
FINANCIAL NEWS
AND COMMENT
Disturbing Factors Produce
Little Effect Except in
Special Stocks.
RAIL MOVEMENTS MINED
Inventory Shares Close With
Small Net Losses-Call
Money Rises.
RAIL MOVEMENTS MINED

Pronounced weakness in two or three
issues dealt in on the New York Stock
Exchange, accompanied by a rise In call
money to 9 per cent. and by the effects
CT the decline in reserve ratios by the
New York Federal Reserve Bank and
by the twelve consolidated reserve banks
produced yesterday n series of infiu-
ences which might have been expected
to cause widespread break in the gen :
eral list. Either key stocks received
strong support or the professionals
found themselves selling stocks to eacn
other. for there was not only no severe
and wide open break but there was at
the same time a merely orderly decline
On the whole the active stocks gave a
good account of themselves and there
were many in important circles to ex-
press the opinion that the market was
close 10 the turning point The stocks
which experienced notable reactions
were Central Leather. Coca-Cola, Royal
Dutch and American Sugar. In each
case there We're special circumstances to
account for the break, which depressed
sentiment but did not rouse the trans
action from an atmosphere Of lethargy.
Total sales were not much In excess OF
500. 900 shares, and ii would be easy to
attach too much significance to such
movements as occurred.
Owing to the holiday to-day dull
and inactive market was to have been
expected. Even the weak stocks slipped
in price without commotion OF any sort
and enthusiasm was conspicuous by Its
absence Movements of the rail- stocks
were mixed. the st. Paul issues alone
showing exceptional strength. while
Southern Railway was weak and Texas
and Pacific continued its downward
career by selling as low as IT. All OF
| the so called inventory stocks, such as
| American Wooden. Cuba Cane Sugar
| United States Food Products and United
States Rubber. closed with net losses Of
a point or so. international Paper solo
! as low as 72 for a loss or ga points
But generally speaking most Of the &C
tive issues confined their losses to frac'
tons. The bank failure in Cuba wa:
made use of by the bears at the start o.
, trading yesterday, but outside or stock:
wilich would be directly affected by thu
! Cuban situation 1t ceased early to be
market factor. The prompt moratorium
put in force by the Government OF CUBS
will give bankers there time and oppor
tuIity to work out the situation with
minimum of harmful effect
/ The rise in call money from an open
| ing of 71a per cent. to high of g. pc
! cent was considered q more or less TEN
porary matter which should be cleared
! up by the 18th. There was q moderate
amount of calling of loans due to de
sire to make repayment to the Reserve
Bank OF borrowings. which went to
high mark on Friday. At the same tirn'
preparations were being made for TIT
huge Anglo-French loan transactions o
the 18th and the withdrawal tomorrow
of $4,000, 900 In Government deposits
There will be additional Withdrawals OF
Thursday, but the amounts have no
been decided upon. Time money loans
were at n standstill. with the rate
quoted as largely nominal. Tomorrow
morning, II the present schedule is car
ried out there will be new financing OF
ferings aggregating 100000. Thes
issues comprise the Sears-Roebuck 500.
00o. 600 bond offering. the Anacond
Copper s25, 900, 900 long term bond offer
ing and a city of Zurich issue amountin
To "a. OO0. 900. While such offerings ma
make n temporary demand on the none.
market they are actually helpful TO IN
banking situation as they fund what ha
been carried largely in the loan account
Of banks.
In the foreign exchange market prac
tically all exchanges. except those Wit
Argentina. showed a sagging tendenc,
as expressed In terms of the dollar. l
was difficult TO find any special facto
outside of the Cuban situation to accoun
for the reaction, which was moderate II
extent. The cotton market moved irregu
iarly lower. Wheat advanced materiaii
and other grains reflected that inove
ment TO a minor extent.