The New York herald., 1921-07-29
FINANCIAL NEWS
AND COMMENT
Call Rates Fall to 3 1-2 p. c.
and Drive at Industrials Fea-
turc Financial Day.

Interest in the financial markets was
divided yesterday between a fall of the
call loan rate to 3ia per cent. its low
est quotation since August. 1919, and
sharp drives against three or four in
dustrial stocks. or those features the
movement of money was manifestly the
more important. because 1t emphasized
the present extent OF idle funds at New
York to a degree greater than had been
seen on any other day OF this year.
Offerings were reported as so far in ex-
cess of the demand that predictions were
heard of the probable return in the near
future OF the frequently quoted prewar
rate Of 2 per cent. There is much doubt
Of this, however. Next week the Gov
ernment is expected to draw down It's
New York balances extensively In con-
nection with payments to railroads. 1t
is likely. too. that the unusually active
bond market. accompanied by numerous
advances Of point or more In yester-
days transactions on the New York
Stock Exchange. will cause a renewed
carrying new bonds and notes until they
go into the hands Of investors entails the
use Of temporary loans
The weakness of particular stocks
was an aftermath Of Thursdays hap
penings. Abrupt declines Of 6% points
in General Electric, s% points in
Pressed Steel Car and 6H points in
Railway Steel Spring could be described
as an inevitable evening up Of prices of
shares which had Jagged behind the
front of the spring liquidation or merely
as the product of bear drives in a mar
ket which has long been woefully lack
ing In support of stock of their calibre.
Undoubtedly the postponement of ac-
ton on the Pressed Steel Car dividend
on Thursday carried that issue further
down and reacted on Railway Steel
Spring. but the fall Of IL points of the
latter before buying orders appeared in
quantity bespoke a much neglected
market for the time being Once the
recovery began nearly half the gross
decline was retrieved.
Recessions of a point or more were
recorded by a number of industrial
stocks. but outside Of those issues which
broke badly there was none which showed
a resumption Of bear activity COM
parable with that disclosed in the trad
ing in June. The rails were strong In
the morning and such unsteadiness as
Lot foil 20 ma rf
them below Wednesdays prices. A sur
vey of the list proves that the rail mar
ket has been recovering with consistency
since the lowest levels of the spring fall
were touched. Northern Pacific being
about Is points higher Great Northern
preferred 10 points up and others to
points higher than their June minimum
quotations. The records of good June
earnings was continued yesterday by
several roads. the Baltimore and Ohio
standing out conspicuously with de-
cline Of more than $1,200.000 in gross
operating revenue converted into an in
crease In excess OF 100000 in net fig
uring from deficit of $5s7.0o0 in June
of last year.
Government financing through short
dated paper continues to meet with
strong response from banks and in
dividual investors. It was announced
yesterday that the 100000. 900 of u.
S. Treasury Certificates offered on We'd
nesday had been oversubscribed and the
understanding of the financial district
was that when all returns would be in
they would show that the New York
Reserve District alone had applied for
the full amount. The turnover of bonds
on the New York Stock Exchange In
excess OF s14.00o,000 was 80 per cent.
larger than on Wednesday, certain Lib
erty issues advancing more than a quar-
ter of a point.
The tendency of money rates abroad
was disclosed in a reduction of the dis
count rate of the Bank of France from
8 TO "a per cent. Through heavy re-
payments of advances by the Govern
ment to the Bank of England and
decline of loans the banks reserve
ratio was carried from 11.40 per cent.
to 1922 per cent. during the week
ended on Wednesday.