The Washington herald., 1921-04-17
NEWS
NEAR WEEK'SCLOSE
STIMULATES MART
Strength and Activity Is
Brought Out i'm Many
Issues.
CALL MONEY HIGHER
Many Factors Contribute to-
Stiffening Rates, Including
Treasury Activities.


news near the close of the week
which stimulated activities andI
strength in the stock market. many
issues moving up substantially from
the lower levels established earlier
In the week when call money rates
Jumped to per cent and vera
maintained at that level with a
scarcer supply Of funds than had
been in evidence for some timel
past. Many factors contributed
toward stiffening money rates, tn,
cluding the switching Of accounts ae
New York as q result OF govern-
ment Withdrawals. payments for the
new issue Of U. s. Treasury certi-;
icates OF Indebtedness, the maturity
Of government obligations. etc. air
of which tended TO bring about q
hrmer tone in both call and time.
funds. The general opinion in tho
best banking quarters at the close
Of the week was that money rates
during the coming week will work
easier and that there will be q
tendency toward q freer supply OF
funds than for the last several
months. While rates may not ease
materially. the fact that there will
be sufficient funds to meet ordinary
demands is a factor of the highest
Importance, both from the point OF
security operations and commercial
activities generally. Reduction OF
the Federal bank discount rate OF
Boston. was the subject OF consid-
cradle comment in New York and
the opinion was expressed by some
bankers that within reasonable
time similar action will be taken
by the New York Federal Reserve
institutions. During the past week
representatives OF the Federal Re-
serve Banks Of the country con-
ferred here with Federal officials
and the reduction by the Boston,
banks was said TO have been tho
outcome Of this discussion Of tho
general financial situatsion-
Railroad sharea
Following the announcement thae
the national railroad wage agree
ment will be abrogated as Of July L
next, there was q sharp recovery in
practically all railroad issues It
was interpreted as indicating that
one of the most objectipnable situa-'
tions relative to the railroads OF tho
country is about to be eliminated,
and this in turn was interpreted as
meaning that other Developments OF
a far-reaching character will followf
shortly after the wage rate abroga-
ton. The fact that the carriers OF
the country will be permitted TO go
back to the pre-wsr basis Of dealing
directly with their men rather than
through a political board was a fac
tor which necessarily was not with-
out an important influence from a.
stock market point Of view. The
railroad situation has been gradu-
/ ally growing worse for some time
past, and with the practical cessa--
ton of business in numerous lines
the volume OF tonnage carried has,
fallen to the lowest level established
in years. Some Of the leading rail-,
road officials say that the situation
in this respect has been psychology
cal and that the higher rates estab-
lished for the movement OF freight.
has had little to do with the retsr-
dation of the freight movement gem
orally. II is learned that such i'm
iportant railroad systems as the Penn-
sylvania, which in January and Feb
ruary showed unprecedentedly poor
earnings. has picked up remarkably
in March, and the indications thus
far in April are that the system has
turned the corner in point Of poor
monthly reports. There has beer
considerable talk Of a possible divi-
dend reduction by this corporation,
but some bankers profess TO believe
that the regular rate will be paid.
although, possibly. not in the form
of cash. There was said TO have
been good buying Of the rails on the
recent break. many regarding this
class OF securities as highly attrsc-
tive at the lower levels established
partly through liquidation and part
ly from bear drives engineered by a.
group which is said to have been
bouncing" on the market at every
opportunity presented.
| While the unsettlement caused by
the strike Of coal miners in Great
Britain assumed wide proportions
during the week there were some
careful observers who were at no
time apprehensive as TO the inal
outcome OF the unprecedented dIffi-
culties confronting government Of
hcials in that country. Il was said
| that whereas considerable selling OF
stock was directly attributable 20
this cause there had been excellent
absorption Of some of the leadinE
standard. issues on each succeeding
day Of decline. This was true both
as regards rails, industrisls and
public utilities.