The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-31
FINANCIAL NEWS
AND COMMENT
Railroad Securities Slacken
Pace-Demand for Rail
Bonds Is Broad.

Railroad stocks failed yesterday to
maintain the fast forward pace OF
Wednesday as considerable profit taxi
ing was attracted by the advance. but
few failed to close lower than on the
day before. A fairly brisk rise of the
first hour supplied a cushion to take up
most of the later reaction from MAXI
ments of November, gross and net earn
ing continued the tale of irregular re-
suits, some prominent lines saving part
of their receipts as net income while
been made plain, through the months
revenue accounts. that traffic was salts.
factory in certain localities and less 70
in others while obsecurity was thrown
over the reports as a whole by iack. of
knowledge Of the extent to which rAain-
tenance charges figured in EXPENSES
and back wage payments were ev identity
included heavily in the returns of GER
others. The rail shares. as whole left
Off yesterday with fractional gains.
The market for railroad bonds was
more interesting than the market for
stocks. 1t spoke well for the broad de-
mand for these Issues and numerous
industrial bonds as well that, despite
heavy offerings on the last day on
which sales could be made regular
way" for record in income tax reports,
the price list was firm. Such funded
securities as Missouri Pacific general
As, St Louis and San Francisco adjust
ment IS, Chicago, Rock Island and Pa
cific refunding Is and Baltimore and
Ohio convertible 41as displayed real
strength. The reason for an advance
of Interborough Rapid Transit 5s was
presented in official information that
the January interest would be paid
and the sentimental effect of this news
was seen in other local transit securi-
ties. The vigorous underlying power
of Liberty bonds was again disclosed
in a relatively steady tone under the
heaviest sales of the year. The full
turnover of close to SIS, 900, 900 in bonds
on the Stock Exchange established a
record of maximum dealings for 1920
and it Is safe to state that the rugged
ness of bond prices all of this week has
encouraged investment houses in the
in the fore part Of 1921.
Industrial stocks displayed high de-
gree of irregularity, rubber and leather
issues being strong all the way along,
and sugar and metal shares recording
substantial gains prior to a reaction in
the last hour. The persistent decline OF
Atlantic, Gulf and West Indies. which
receded more than points on the day,
aroused much mental speculation in re-
spect to influences causing liquidation.
1t Is probable that the stock has been
rejecting lately what shares of COM
panies in the same field went through
earlier in the declining movement,
namely, the decline of business and the
freezing of resources in slow moving re-
ceivables. Call money was again quoted
at per cent. and information in bor-
rowing quarters indicated that year-end
needs for funds was acting to restrict
the supply to an extent larger than in
earlier days of the week.
European exchange rates evidently re-
ceived FLIP from negotiations for the
funding of Great Britain's $4,000, 600. 900
OF demand loans of the United States
Treasury. Sterling advanced III cents
to sS.52% and Continental rates were
firm. The Bank of England's weekly
statement by reason. chiefly, of an in
crease Of EFT 700. 900 in loans and a con-
sequent large gain in deposits, showed
another decline of the reserve ratio to
7.so per cent, the lowest on record. This
expansion overcame gain of 1920, 900
in reserves. Cotton lost its resiliency OF
wednesday, leaving off with moderate
decline. Grain future prices were firm.