The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-19
FINANCIAL NEWS
AND COMMENT
Stocks Close Weaker-SugarS
Down to New LOws-FOr-
eien Exchange Off.

The professional stock trading ele-
ment. encouraged by its success i'm fore
! ing sugar, steel and other issues down
/ on Friday, were active from the start of
business yesterday and largely through
their efforts che price list closed with
greater degree OF weakness than it did on
the preceding day. From selling the
sugar issues down TO new low records Tor
the year. the partisans of the short side
turned attention to railroad equipment,
tobacco. steel. oil and railroad shares,
bringing about reactions OF point to
more than points. The fact that the
business turnover in the two hours oil
dealings was nearly twice as large as
on Friday showed that confidence In the
bear position had increased over night.
and selling pressure found little more
opposition than in the earlier days OF
the week when prices receded the easiest
There was little II any. rallying power
in the market at the close.
Such q market as yesterdays speaks
rather eioauently of the uncertain UNI
der-structure of sentiment toward INDUS
try and pending developments IN COM
mercial lines. At the end OF week
containing sharp downward dips and IT.
regular rallies, one frequently expects
something in the way of short covering
But when prices leave off with the bear
contingent seated firmly in the saooie'
little reason Is supplied for expectation
of rising quotations during the next few
business days. The market has, how
ever, the habit OF turning about SUDDEN
w and It is not impossible that the last
DAVIS of the year will see reflection OF
the feeling held in some speculative
quarters that, with the new year, busi-
ness conditions will gradually disclose
Improvement The mercantile reviews
this week have detected traces of slow
betterment in textile lines including the
reopening of several mills. 1t would
not be surprising If the railroad state
ments for November disclosed some inn
provement in respect to profits as COM
pared with those of October and Sep
TENDER although estimates of decline
in freight movement make the outlook
problematical. A summary of operating
results of most of the country's roads
in October shows that net operating in
come was 1874 per cent less than the
amount necessary to make per cent.
on the investment, but only close exam
nation of maintenance costs. which is
not possible at this time. would indicate
whether or not the carriers had charged
off an unusually large proportion of
gross revenue for this purpose
Sterling exchange continued its reac-
ton, the sight draft rate at $40 at the
end of trading showing a fall of cents.
Other quotations followed the London
rate downward Despite the quick re-
verse of Friday and Saturday, sterling
gained. more than cents on the week.
Member institutions Increased their
borrowings through rediscounts Of Gov
eminent paper from the Reserve Bank
$39. 500, 600. but were able to reduce re-
discounts based on commercial bills to
the extent of SIP 100000. the net re-
duction of all forms of rediscounts be-
ing close to sso.00o.Ooo. The bank lost
SIS, 100000 through the gold settlement
fund and the gold reserve receded about
100000. Net deposits, however. de-
clined s47,171, 900. making necessary a
smaller reserve than was required
for the proceeding week. and the
ratio of reserve to deposit and
note liabilities was 3s.1 per cent, the
same as on December IL. A seasonal
increase of reserve notes outstanding
amounting to s7.s00,oO0. was reported
The Clearing House statement showed
the result Of the shifting of funds Incl.
dent to the transactions of December 10
The report OF actual condition noted ar
increase of S1tj.j76OOO in loans and tho
surplus reserve receded s3,025.0o0 tc
81. 222.00o. the change corresponding al.
| most exactly TO a recession of reserve