The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-17
FINANCIAL NEWS
AND COMMENT
Stocks Go Lower in Irregular
SesSion-Call Money at
6 Per Cent.

/ IN ali the major markets except for
eign exchange yesterdays movements
were far less interesting than during
the preceding sessions Of the week.
Stocks were inclined to dulness at times
and while the aggregate turnover was
greater than in the average markets Of
November it fell substantially under
that Of recent days Of heavy liquidation
and short sales. An irregular array
Of prices at the close contained net de-
clines as a general thing, many recess
sions being / point to 2 points, but the
broad action of quotations indicated lit
tie beside the putting out Of short lines
IN the sugar. rubber and some Of the
steel and miscellaneous manufacturing
shares. together with scattered sales for
the purpose of recording losses for the
next income tax statement 1t was
noted that several preferred stock is
sues lately under sharp pressure adj
vanced easily under moderate buying
while railroad shares as a whole were
fairly steady,
The movement of stocks was con-
sistent with similar periods after drastic
declines OF the past The absence Of
heavy offerings OF industrial issues
seemed to disclose at least pause in
processes OF liquidation and the resill-
ency of prices on Wednesday evidently
made the professional bears act eau
tiously. The days business contained
nothing which could be used as q fore
cast of what is to come in the remain
Ing sessions of the year. The fact that
the market has been growing duller
since the activity Of Monday brings for
ward the suggestion that the most in
sistent part Of the years selling has
been completed. But the situation OF
business, bringing reduction Of output.
cuts of wages and the elimination of
quite a number Of dividends, continues
to cloud visions as TO the early future.
Call money again got down from to 6
per cent. but the easing tone of time
funds noted the day before failed to
be recorded in quotations except for
reported small loans under ~ per cent
All the signs, including the reduction
of stocks of merchandise and COM
modlties and the liquidation Of stocks.
point toward easier money around jan
uary and later, but the Street is in
clined to take a conservative view of
the outlook in advance Of actual de-
velopments. 1t remains to be seen
whether the postponement of income tax
payments will actually be Of extent slf-
ficient over the country to affect the
Governments borrowing programme in
the first quarter of 1921, and the rates
of money and credit depend to q degree
upon this event.
There was heavier flow of buying
orders in the sterling exchange market
than on Wednesday, and in consequence
quotations moved upward S54 cents to
final check rate of 3.5lA. This was
cents higher than on December Z.
Presumably. merchants here with bills
10 meet in London before the end of
the year were active buyers, and the
desire to cover requirements overseas
may have been made more insistent
because of the growing premium on
exchange for delivery in the late win
ter and spring months. The rate on
Buenos Ayres receded, and there was
substantial reaction of the Rio de
Janeiro quotation, while the Canadian
rate lost more ground. These declines
were evidently tied up with trade con-
ditions in the southern countries and
in Canada. although definite explana-
lions did not come to light.
The grain futures market at Chicago
contained quick fluctuations, but the
net changes were slight. amounting to
a gain of about cent a bushel in
December wheat and a moderate reac-
ton Of corn quotations. Cotton adj
vanced slightly on short covering oper-
atoms.