The New York herald., 1921-05-11
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Continue to
Decline-Call Money Rate
Rises to z Per Cent.

I Near the close OF yesterdays stock
market session the rate for call money
advanced from 6 61a per cent to per
cent The expectation of hardening
money rates as midmonth requirements
were prepared for May have had some
influence in depressing prices of stocks.
but the more obvious explanation was
the revulsion of sentiment which has
occurred in respect to phases of the spring
industrial revival This was especially
true of the automobile field, and auto
mobile shares were again weak, reac-
tions among them extending in infiu-
ence out into motor accessory. rubber.
sugar and tobacco issues Declines ex-
tending from 11a to as much as 6
points were distributed broadly through
the industrials at the end Of the day
and several railroad stocks also re-
treated. Some of those groups had
risen from to Is points and more dur
ing the forward swing of the last six
weeks. That upturn. considered in con-
servative market quarters more in the
nature VI q ViBofuuS Tdliy tHdH part Oh
a sustained Improvement, naturally has
come in for increasing pressure in the
way of realizing and short sales.
The advance of the call loan rate, al
worth consideration because of large
financial transa ctions under way. The
quick sale of s20.0oo.Oo0 of Standard
Oil Company of New York 6Hs is ex-
flow of new financing In the next few
weeks. Next Monday payment of the
$3.50, 900, 900 of Great Northern Northern
Pacific joint bonds is due. and although
may be required the operation Is likely
to combine with Government transac
tions of that day in it's effect upon
money. The Treasury is offering $780,
600, 900 nine months certificates bearing
5h per cent. interest, and subscribers
will have their payments to make on
next Monday, at the same time that
s232.124,0 600 of maturing certificates are
liquidated and s70,000.OO0 distributed as
interest on the Second Liberty. The new
offering of certificates is smaller than
many bankers expected. and the rate Is
the same as that Of the $50, 000.0 900 Is
sue of April Is. although 1t was thought
then that the next Treasury short term
financing might be put through at a
slightly lower interest cost.
The operations of May 16 are of suf-
ficient magnitude, when taken in con-
nection with the demand from under
writing groups in distributing new secu-
rites, to afford something of a test Of
the money situation. That the move
ment toward expanding ease Is progress
ing was shown on Monday through the
reduction Of the rediscount rate OF the
Minneapolis Reserve Bank from to 6h
per cent, leaving only the Dallas insti-
tuition at the per cent. level.
French exchange advanced with
strength yesterday and sterling was bid
UP about a cent to the pound. In fact,
most European rates went higher. The
basis of buying, reported as on large
scale in sterling, marks and French and
Belgian francs. was evidently a growth
of confidence that German acceptance OF
the reparations terms would be made
within the period of grace.
The chief of domestic industrial news
was the report of the United States Steel
Corporations untitled orders, which
showed a decline of 439,541 tons during
April. During the first three months OF
1921 declines ran at 100000 tons or more
a month, and it seems that the April
figures show one effect of price reduc-
tions The corporation has on Its books
about half as much business as II ala
In July.