Omaha daily bee., 1920-11-29
Financial
Che Menu pOrk Gimes.
By ALEXANDER DANA MOVES

Chicago Tribune Omaha Bee Leased Wire
New York, Now 27.-In a day OF
upimportant movements on almost all
markets, the weekend bank statemets
were the principal matter OF interest
today. They were somewhat con-
Trajectory i'll their reflection OF money
market conditions. The New York
Associated banks ended week OF
easing on in money rates by con-
verting a $l2,40O,000 surplus reserve
into $4,000,000 deficit. Loans OF
these private institutions were re-
Nduced $l3,000,000; this. however,
would be more than explained by
the weeks $33,000,000 withdrawal OF
government deposits. and the disap-
pearance of the surplus reserve was
entirely due to $l5,600,000 reduction
in reserve credits at the federal bank.
This reduction combined with $8,-
100000 increase in that institui joins
cash holdings wholly a result OF
the weeks arrivals of gold from Eu-
rope enabled the reserve bank to
pay off $4,60O,000 of the bills it had
fediscounted with other federal re-
serve banks and still to report .
ratio of reserve to liabilities nearly
I per cent above last Saturdays. The
present percentage OF ~ 7-S is the
highest since September.
Two Meanings.
1t might be argued that the New York
reserve banks statement indicates increas.
ing ease in money or that the statement
Of the private banks indicates continued
strengency. The deficit at the associated
record exceeded only in the three panic
periods OF 1898, 1907 and 1914, and In
the last November deficit has usually
meant light money at the year ,we end; s,.ts.
ments signify. however; IS that the re-
serve banks. while acually reflecting relax
alton OF the general strain on credit, are
keeping themselves in position to meet
without disturbance whatever special and
temporary requirements may arise next
month. The policy is properly adopted; 1t
shows the absurdty of last weeks talk IN
Wall street about an immediate reduction
in the reserve bank rates.
Changes in prices on the Stock Ex,
change were entirely uaimportant and
day the business on a narrow market
seemed to originate almost exclusively
with the room traders" whose objec-
tive point IL fractions. In half dozen In
.
points or more. but in nearly all Of these
the transactions were insignificant and
the greater part OF the early loss was
retraced when 1t was evident that no
large sales were being attracted, notwith-
standing the stress laid on the misfor-
tunes OF speculative celebrity who had
been more or less connected with some
OF the stocks in question. In the gen.
eral market net advances and net de-
clines were about equally divided and
all were fractional.
Foreign Exchange Firm.
Foreign exchange was firm all day and
closed with moderate advances for ster-
ling and most other European rates, The
iished on Friday, had caused considerable
discussion as to whether the recent sharp
decline In rates might not, after all. have
been result of our abnormally large sur
month. This question will possibly be
clearer when the detailed figures Of the
October exports and imports by coun-
tries are published, week or SO later.
period Of SO acute, money tension in
New York as existed from the beginning
of October to the middle of this month
was bound to affect foreign exchange rates
very directly. Even before the war, mon
ey stringency on Wall Street always caused
a decline in sterling and continent rates;
the only difference being that in those
dayt the, rates could not fall below the
Gold point whereas suspended, there is
no assignable limit to the depreciation of
the exchange market. Silver bullion also
advanced again; today's London price was
nearly 2 pence per ounce above Wednes-
days lower figure. The New York rate
has recovered In the same three days
from 72 cents to 76.
Little or nothing Of week lend recovery
occurred in today's commodity markets.
Wheat 4and cotton both went below the
seasons previous low level. though both
recovered slightlS at the last With De-
reminded again of the conclusions Of a
well -knowh grain trade crgan, after can
the trade last spring to. ascertain
what what would siGa happen when the govern
Predictions of the resultant open market
price,, SO it was stated. Range all the
way from $3.50 to s4 per bushel with
out convincing arguments in either d.
rection."