The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-07
FINANCIAL NEWS
AND COMMENT
Stock Market Trading Broader,
but Prices Yield to Heavy
Realizing at Close.

With trading spread over the years
broadcast Hist stocks advanced yesterday
generally In early transactions and
yielded grudgingly to a heavy now of
realizing sales during the closing hours
The reu0etion of the rediscount rate
from Z TO 6 per cent. by the Reserve
Bank in Atlanta helped to sustain the
from the cut OF the New York rate on
Wednesday. but outside OF this there was
nothing new to carry along the upward
swing OF quotations. The lowering OF
the Chicago bank rate was not known
70 business houses. The filing of final
claims by the allied authorities with the
German Commission had more OF re-
Election In the foreign exchanges than It
did in stocks. French francs rising with
considerable force to $40 for some trans
actions. later receding part way back
to Thursdays final rate Of sos. The
movement ran parallel TO a strong rise
of the Paris rate in London. Sterling
was slightly lower than 1t was on Thurs
day. presumably on an expansion of
profit taking sales here
The fluctuations OF stocks we're quite
In keeping with movements on other
Fridays of the year after several days
OF cheerful developments and a bulge
OF prices. IT was natural for buyers
who had acquired rails and industrials
g. Il. 4.
the rise had not gone far In discounting
favorable events that had appeared and
others expected soon. The current week
has been momentous in the readjust-
ment Of industry and credit. The Steel
Corporations wage cut stands as
signboard pointing the way for other
organizations.
The lowering OF rediscount rates
by the New York and Atlanta Reserve
banks and the earlier action by the
Boston Reserve Bank liz a sign OF 70
laxing credit charges which cannot be
disputed. and the markets have reason
to expect that other reserve institu-
lions will mark down their rates soon.
The only reserve banks maintaining a
Z per cent. rate are those In Chicago.
Minneapolis and Dallas. and the 4s.3
per cent. reserve ratio In Chicago sug-
gests that the next cut may be there.
as the Atlanta banks proportion of
cash to note and deposit liabilities was
no higher than E per cent. in yester-
days report. The fact that the reduc-
ton Of the Atlanta bank was from z to
6h per cent. by the New York bank. in
dicates that Reserve Board sentiment
aims to facilitate the cheapening of
credit most extensively at points where
the greatest difficulty has been expert.
enced in cutting down loans secured by
slow moving commodities.
The cotton planters and factors are
still struggling with last years crop.
and 1t Is evident that high borrowing
costs would work against operations
surrounding this years planting The
same condition prevails in the grain
region. The lowering Of rediscounts In
the Industrial centres OF New York and
Boston has brought nothing in the
way Of new initiation; hence 1t can be
deduced reasonably that In other Sec
tons Of the country nothing more than
conservative and essential expansion
OF credit use will follow rediscount
rate cuts at this time.
The stock market was enlivened by
sharp upturn OF nearly six points In
Mexican Petroleum. while several rail-
road and sugar issues left off higher
than they did on Thursday. But Grac-
-tional recessions were In the majority
and several steel, mining and rail shares
recedei more than a point The pass
ing of the American Smelling and Re-
filming Company's common stock divi-
dend was somewhat unsettliug to-
shares OF that class. Call money was
at s,s per cent, a rate neither high nor
low.
Wheat options were again very strong.
gaining two cents to nearly four cents
bushel. At &1.4s1z. the May contract
stood yesterday eighteen cents above
the price Of a week ago. and July wheat
was UP more than eight cents In the
Same period. Cotton was quiet yester-
day and prices moved very little.