The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-21
FINANCIAL NEWS
AND COMMENT
Last Years Speculative Favor
ties Weak-LibertyS in
Quick Decline.

The stock market was still lacking In
buying power yesterday and. in conse-
auence, professional traders met with
success in offering many industrial
shares down Reactions ran from large
fractions to more than two points. with
the greatest points OF weakness in issues
which enjoyed speculative vogue in
the rising market of 4 year ago, but
either had not become seasoned at that
time or We're new members of the trad
ing list Inasmuch as the action Of
stocks was fully in keeping with what
went or last week, the persistent saggIng
tendency OF copper. leather, some steel
and oil and a number of miscellaneous
manufacturing stocks attracted less at
tention than a quick decline of Liberty
bonds in tho afternoon. These receded
from y 10 nearly 1 Il points, and while
one eXplanat ton was selling for the pur-
pose Of recording losses in the years in
come tax return. the more obvious one
was contained in news that the Senate
had voted to revive the War Finance
Corporation for the purpose of aiding
farmers in disposing of surplus products
through new credits extension.
The decline of Government war bonds
threw light on the financial community's
attitude toward 4 movement which many
feel might lead TO fresh initiation and an
increased burden upon tax payers. The
full draft upon the Treasury that manu-
facturer2, now engaged in slow liquida-
ton Of accumulated stocks. might take
ieaf from the farmers book and also
their goods along until market conditions
improve The processes of orderly liqui-
dation and defation in commercial lines
are proceeding, however. in an orderly
movement TO postpone present market
tendencies will be pressed either by
corporations or the banks engaged IN
helping them through the present diff
cult period Evidence is prescribed III
bank loan accounts that liquidation in
many directions is going ahead graju-
ally, and 1t remains TO be seen whether
/ the application of Treasury fr,rls. II
finally permitted. will so work out Us t,
bring material relief to the one class of
producers asking for the service.
Last weeks rise of the Federal Re-
serve systems ratio OF cash reserve to
note and deposit liabilities to the highest
point in exactly year reflected the re-
| tirement Of loans incident TO net re-
duction Of outstanding Treasury certifi-
Gates ON December IT, But there was
undoubtedly some effect shown of the
! reduction OF borrowings for commercial
purposes, and during the week Western
institutions cut down their loans with
reserve banks of the East. The second
week after a Government settlement date
frequently brings a new expansion OF
loans, and FOR this reason the forthcom-
ing consolidated statement will be stud
led for signs Of permanent Improvement
in the country's loan account. II the
final report Of the year contains addi-
ton bankers will look forward with
! greater confidence for easier money and
credit rates in the early months Of 1921.
I The November foreign trade statement
contained no striking items. the matter
OF foremost significance being the proof
that despite unfavorable exchanges. our
exports continue TO move out an large
scale. The months aggregate, while
s75,o00,oo0 less than in October was
among the five largest months of the
year in value. The sluggish buying mar
lSets Of the United States. together with
the decline of commodity prices that has
occurred abroad was shown forth In a
recession of s1S,oOO,OO0 in value of i'm
ports Whether or not connected with
the proof Of the maintenance of large
export trade. the foreign exchanges adj
vanced yesterday after an early reaction,
sterling rising ga cents above Satur-
days final quotation, with a final rate