The Washington herald., 1921-08-07
DULLNES AGAIN /
PREVAILS ON n. Y.
STOCK EXCHANGE
Trading Is Similar to Or
dinary Week-End
Market.
TONE STILL HEAVY
Rails Practically Unchanged,
While General List Suffers
Fractional Losses.
TONE STILL HEAVY

NE" YORK. Aug. C.-Dullness
prevailed on the stock exchange and
i2 w;ss such as ordinarily char
acterizes a weekend market The
tore. however, was heavy. Rails
were practically unchanged. while
steels, equipments and coppers were
trHcIiCnaIIy lower and chemical
shares were distinctly weak. To-
ord t. ".rE fractional losses pre-
dominated. Sterling continued it's
ialIy. L':GG up one cent at 50 60k,
and it is Increasingly clear that
shifting Of funds in connection with
reparation requirements is playing
large part in determining the
prices of the foreign exchanges.
Cotton was moderately active and
firm, October being up six points at
1880 cents. Trading in wheat was
small with September slightly hfsh-
er at sl.ls.
Clearing House surplus.
In place Of last weeks deficit Of
sl3.3oO.o00 the clearing house banks
show surplus reserve amounting to
Sls.S00.000. Reserve deposits at the
reserve bank meanwhile have in
creased by s22,3O0. 900 loans are s45,-
100000 larger. and deposits show q
decrease OF sSO.SOO.OO0. Practically
all Of the latter shrinkage occurred
in net demand deposits. Government
deposits. on the other hand, are
greater by s1l3.7oO.00O
Changes OF the week in the prin-
cipal financial markets have been fr-
regular and disconnected. Stocks
reacted on profit taking and a re-
sumption of short selling. rails lead
ing in the decline and activity being
still chiefly OF a professional char
actor. Cotton rallied strongly on the
poorer condition shown by the gov
erLrment crop report and continued
reports of weevil damage. Wheat
on the other hand. felt the effect Of
| liquidation arising from heavy re-
ceipts and somewhat lighter export
demand. The foreign exchanges.
| after starting the week under a
| pressure of offerings, developed a
change OF front. supply disappearing
and bidders forcing prices up.
II might be assumed from these
| circumstances that the present out
look is discoursgingly uncertain.
Such q view. however, is not Justi-
! fed by a closer examination of the
{ facts. The Tightening in the New
York money market for example,
does not signify an important re-
versaI in the previous tendency to-
! wards easier credit. II is rather a
symptom of an equalization In
money conditions throughout the
country following on recent strik-
ing recessions in rates. It would ap'
pear that the price Of money de-
clined TOO rapidly at New York. oi
in Nhf
western centres. AS a result money
flowed out of New York to eQualizt
tie differences. and while by the enc
OF the week New York rates were
higher, those at Chicago were lower
similarly in the case OF the stock
market. too broad differences as tc
the probable course Of business
should not be drawn from sagging
prices. Apart from the naturslness
Of a reaction on technical gounds
the significance OF the weeks de-
cline probably is slight. Under nor
NAL circumstances a turn Of the tide
in stocks anticipates that in genera
business by as much as months
Existing circumstances. however
are distinctly abnormal. The wave
of LIQUIDATION in the current busi'
ness cycle has to take account o'
not only the post -armistlce specula
ton, but the huge imitation OF th'
war period. Uncertainty as to in
|. dustrial and commercial condition.
is considerably increased. The pub
lie now wishes definite assurances
of earning power before buying
stocks For this reason a quicken
ing Of business activity is as like
ly to precede a turn in stock as th'
latter is to anticipate better busi'
: ness.
- matter of fact. the business
outlook is better. Rallying cottoi
prices enable Southern planters an'
traders to sell parts OF their hold
ings. and so gradually r.~uce thet
borrowings and strengc.en their po
sitions Weston farmers, thanks q
crop damage in Europe, are able q
sell their grain freely at prices bet
ter than had been anticipated. Tn
indices of the trend in wholcSal
commodity prices not only refiec
the higher return for farm products
but point to a slackening in the rat
Of decline and an approach to stab
ilization. The steel industry feels ;
better sentiment and believes tina
the lowest ebb in the demand hs
been passed. Altogether. the max
ings OF better domestic trade in tn
fall clearly are at hand.