The New York herald., 1921-05-01
FINANCIAL NEWS
AND COMMENT
Buying Activities of Pools Pre-
vents Stocks From Hav-
ing Weak Tone.

Stocks came in for mueh selling yes
terday as the weeks profits were gar
nered, but there was sufficient pool ac-
tivity on the buying side at all times to
prevent weak tone, In fact. the de-
mand for automobile. rubber and motor
accessory shares was large enough to
bring gains extending upward from large
fractions TO four points and more. That
the market was passing into the hands
of strong groups Of traders, amply sup
day and Friday, and the final burst of
strength in motors and tires suggested
that influences other than improved busi-
ness conditions were back OF the move
the setting is right for continued efforts
Of organized speculation. The answer
will depend in the long run on the ap-
pearance OF developments, expected in
some quarters of the Street and dealing
with costs OF credit and the ultimate
solution Of the German reparations
problem.
The charges of unfair competition
made by the Federal Trade Commission
against the Steel Corporation were prac-
tically disregarded az a market infiu-
ence. The situation which Federal off,
,ials question, comprising the figuring
into selling prices Of freight charges
from the Pittsburgh base for steel made
at plants in that region and elsewhere.
is OF such long standing that change
would tend to bring a multitude Of
methods for quoting prices. But tho
trade has been studying for considerable
time the method. urged by complaints
from many consumers. and the head of
tbe corporation himself has asked for
an inquiry. With that In mind, the
stock market was not inclined to be-
come chilled over the possibility of liti-
cation Steel common, in fact, gained
ground, and independent steel issues
were stronk
The New York CNaring House bank
statement disclosed evidences OF prepa-
rations for the May interest and divi-
dend disbursements. The report of actual
condition as OF Friday noted decline
during the week OF $s,s31. 900 In reserve
credits at the Reserve Bank and there
was an increase Of loans amounting to
s4,340,0o0. The reflection Of 6h and
week was seen In an expansion Of s32.-
0oo, 900 in demand deposits. which. pre-
sumably. represented in part the flow
of funds to New York. In the preceding
week, following a decline Of the call
loan rate to 6 per cent. and lower for
considerable borrowing, deposits declined
| 1900. 900.
The current week bids fair to con-
tain numerous and sizeable new security
offerings. The success OF the Burling-
ton refunding operation shows that in
vestment money is around in quantity.
and the outlook for easier interest rates
for collateral and commercial loans sug-
gests Investment and speculative buying
of bonds. There are signs that the re-
laxing situation Of money and credit
bears witness to a sluggish position
OF business, but one encouraging indi-
cation that business Is. at least, drag
gin. bottom has been seen IN the last
few days IA additional price reductfoas
of certain automobile tire and accessory
quotations. 1t is likely that factories
are beginning in some instances to on
ter a period of lower costs than have
prevailed because old, high priced stocks
of materials have been worked up.
The foreign exchanges displayed real
buoyancy. sterling reaching upward to
new high record for the year above
s3s6. Francs continued the upturn OF
Friday. those movements seemingly
showing that the international markets
look for something TO come from repara-
tions discussions despite present daffl-
culties.