The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-18
FINANCIAL NEWS
AND COMMENT
Stocks Show Signs of Drifting
Lower-Foreign Exchange
Rises and Falls.

The stocks which were at all weak
yesterday declined sharply toward the
end Of the day, but these were confined
to two or three groups and the great
majority OF issues on the New York
Stock Exchange did not lose much
ground. At the same time the market
presented no convincing signs OF a real
change of character, the broad tendency
being ono OF drift toward lower levels.
Sugar shares were pressed down
throughout the day, the movement evil
IDENTIFY being accelerated In the afternoon
by the passing of both preferred and
common stock dividends of one of the
smaller producing concerns. The new
Cuban crop wfll begin to go through the
mills next month and a current price
around cents pound for the raw
product, compared with the boom quota
ton IN excess of 20 cents at midsummer.
presents rather dubious outlook for
companies whose profits como chiefly
from raw sugar. To complicate the
prospect for next year there is a large
accumulation OF sugar In Cuban ware
houses. But the situation In this field
is hardly more unfavorable than in some
other lines Of business endeavor. and
prices SO low as those quoted in the last
week forecast a recovery later
Sugar stocks receded to 10 points,
bids being decidedly hesitant at times.
Several oil Issues dropped back and
steel and railroad stocks were irregular.
Trading was inclined toward greater
dulness in the first half Of the ses-
| sion, and the later increase Of activ-
ity, coupled with what looked like ex-
panding bear pressure against the indus
trial list, may have had connection with
| the maintenance of a per cent. call
loan rate throughout the borrowing pc
Rod. The reason why call money should
have been firrner than on the day before
was not explained by anything that de-
veloped in the financial markets. Theo-
retically, there should have been
growth OF deposits. as the proceeds OF
! Liberty loan coupons came into the
banks as well as dividend checks sent
out for payment on December Is, and
this would have made call funds more
plentiful than on wednesday and Thurs
day, when 8 per cent. was quoted for
late transactions. The money situation
promises to be uncertain until the end Of
the year at least, and the extent OF ease
ment in the first two months Of 1921
will probably be shaped largely by the
success holders OF inventories and prod
ucts of the soil have In liquidating their
goods.
A reaction OF sterling exchange, after
another strong bulge, seemed also to
have relation to the action Of the money
market If the processes Of the ex-
change market fluctuations of last
| spring and summer can be applied to
the dealings of this week, considerable
speculative buying came along on the
leels OF purchases to cover requirements
in London at the year-end. The bidding
up of sterling from s.43% on December
8 to 3.54. yesterdays highest point, was
urged along by the appearance of easier
money. and yesterdays late reaction
from 1854 to 3.51 had the earmarks OF
quick sales for the purpose OF realizing
profits. Continental rates were firm for
time, but accompanied sterling in the
reverse movement of the afternoon
South American rates again shaded
downward.
The Governments first estimate on
winter wheat condition contained a
somewhat unexpected item. this being
the calculated area of 40,6O5,0O acres
sown this autumn. a decline Of only rs
per cent. from the revised area sown
last autumn. The farmers evidently
were not moved by falling prices to re-
strict their planting Wheat futures
were strong, rising 51a to cents a
bushel. The cotton markets movements
were slight and without significance.