The Washington herald., 1921-08-13
SHORT ELEMENT EaI
FOILED, And ISSUES
SCORE ADVANCES
Early Attack Results in.
Heavy Pressure in
Certain Issues.
LOSSES ARE OFFSET,
Early. Declines Are Wiped. :,
Out and Substantial Gains
Are Recorded. -

NEW YORK. Aug. l2.-After a
firm opening on the stock exchange
the shorts renewed their attacks
Central Leather, General Asphalt
and Sears Roebuck being subjected
to heavy rpessure, and the most
being made of vague rumors Of
financial troubles When, how
ever. the impression gained ground .
that a statement was imminent
in the one case which has been a
reassuring subject OF serious
discussion. the shorts hastened
to cover ana good rally
in prices resulted. In the great
majority OF cases the early de-.
clIneI. which were considerable.
were wiped out and a number OF
substantial advances were sub
stituted. Toward the close> the
rails were higher. by a point in
several instances, and gains pre-
dominated among industrials. Call
money was at 6 per cent through
out
A slightly more active exchange
business was transacted in the for
eign exchanges but the market was
still a thin one. Sterling sold
cent higher in the afternoon st
S366Lz and at one time was = cent
above this quotation. Italian lire
were also somewhat higher, as were
remittances on Switzerland, Holland
and Scandinavia. French fracs,
however. were in supply and sagged
off 2lz points to 7.SS cents. while
German marks were the same num-
ber of points lower at LIN cents
Canadian dollars maintained their
recent firmness. and India rupees
gsined u % a cent. at 20 cents This
y. Ice IS ~ cent better than that OF
a week ago and ! cent better than
the price at hebeginning Of the
month. The Improvement coincided
with more favorable reports regard
ing the character of the monsoon
II the latter does indeed develop IA
vorably, the effect on foreign trade
and general business will be impor-
tant.
Trading In the commodity mar
kets continued 10 reflect the unceT-
tain feeling in speculative quarters!
Private reports put the condition OF
the cotton crop at the extraor-
dinarily low figure of 57.4 per cent.
as compared with 6L7 per cent in
the recent government estimate, but
the market showed little strength
After some of the fluctuations a late
price for the December future was
1852 cents, the let iSss being I
points. Wheat also failed to recog-
nize reports Of a bullish nature
such as frost in the Canadian North
west and better export demand. De
cember started firm but broke TO
$I25lz for a net loss Of = cents,
Federal Reserve Report.
The weekly statement OF the com
hined Federal Reserve system is a
remarkably satisfactory one. The
gain in reserve ratio. Ia per cent.
is the largest in some time and
brings the figure TO a new high OF
So per cent Increased gold hold
inEs. and substantial reductions IN
deposits and note circulation con
tribut~d TO the Improvement. Such
reductions ar the more remarkable
in tho face of an active crop move
mcnt. and suggest that the thawinE
Of frozen credits Is moro than bal
ancinE tho added demands oc-
cssioRed 10y the new crops.
Confirmation Of this point Of Ni"w
may he found in the showinEs OF Gt'
individual regional banks. WI"
the exception of the bank at Bos-
ton. all these institutions improNec
their reserve positiOas. The largest
gains wero made. Furthermore. by
the Western banks. As a result "t
this condition the latter were abir
to ,-educc the amount Of theit Dor
-owings from the other regional
hanks. so that the total volume OF
such accommodation outstanding -
now s5s.2 200. 600. which is s5.6eo.ooo
less than a week ago.