New-York tribune., 1921-02-02
Prices Drift
Lower I'm Dull
Stock Market
Movement of Foreign Ex-
change Rates of More In
terest to Traders; Vigor-
GUS Recovery After Break

wall Street experienced another
waiting stock market yesterday, The
principal feature of the trading was
the dullness of the whole performance.
Prices moved sluggishly and the whole
market reflected disposition on the
part of the speculative element to
stand by and do little. The majority
of industrial shares drifted lower and
losses of point or more we're regis
tered by many issues at the close, but
this was due mainly to lack of inter
est rather than to any real selling
pressure. Dealings In the five hours
Appropriated 100000 shares, small
turnover when the length OF the trad
ing list is considered.
Of much more interest than the
desultory proceedings at the exchange,
which meant nothing more than an un-
Willingness on the part of traders to
enter actively into undertaking. new
commitments, was the excited move
ments in the foreign exchanges. Here
the great divergence of opinions rela-
tive to the German reparations pro
ence found full reflection. At the out
set sterling and francs dropped VIC
lently, with marks not so weak Then,
after wide fluctuations in the middle
of the day, rates hardened and then
recovered vigorously. On the fore
noon decline demand sterling rates
tumbled 4$4 cents in the pound to
1919. On the afternoon recovery the
quotation rose to 3.73&, unchanged
from Monday. Rates on Paris fell
more than 20 points, francs getting
down 10 OF hut bn
later in the day they climbed to 7,04
cents for franc checks, showing at that
level slight net gain. German marks
broke to 1.52 cents, then rallied to 1853
for checks.
Developments bearing directly upon
the stock market included the passing
of the dividend on American Hide and
Leather preferred stock This action
by the board had been expected and
had been discounted largely by the fall
in the price of stock during the past
year. AS in the case of many other
corporations which have been hit by
the fall in commodities and the buying
slump, the action was dictated by a de-
sire TO conserve resources. A con-
structive influence on the copper
shares was the news that the leading
producing interests in the country
plan to pool their huge surpluses of
AAcIait cS SlllidIetl dl 4uu,uoU,uOU pOuNOS.
with a view to selling it for export.
The arrangement is understood to in
volve financing of the pooling scheme
through the issuance of debentures
against the metal which will likely be
underwritten by bankers and offered
for public subscription. An operation
of this character would require ap-
proximately 100000 600 on the basis of
current metal prices.
Call money opened at Z, but went to
in the afternoon. Active calling of
loans in connection with FEBRUARY re
hnquishments was reported The gov
ernment withdraws SIS, 100000 from
local banks tomorrow, which will
make total Withdrawals for the week
of more than 20,000,000. A factor in
contributing to the more stringent po-
sition in Fe local money market is
said to be the large financing opera
tions of the last few days. Last week.
for example, approximately $150000,-
600 in new securities were sold TO the
public, and this has iuvolved q con-
siderable turnover of funds, which has
been felt by the banks. even if only
temporarily. Besides. interior banks
continue to use New York as reserve
center and are still drawing funds
from here.
The commodity markets were some
what unsettled yesterday with wheat
falling 4 to 5 cents on reports that
Europe is shifting its buying orders
from the American to the Argentine
market. Cotton closed slightly lower.
Corn reached new lows for the season
before recovering.