The New York herald., 1921-02-08
FINANCIAL NEWS
AND COMMENT
Stock Market Is Apathetic,
Due Chiefly to Neutral
Character of News.

fected the stock market yesterday could
be ascrihed in chief part to the neutral
character of news and developments
outside the market itself. During the
first half hour OF trading prices were
moderately firm, but the movement
came to an end when the call loan
market opened with the per cent
rate of last week still in force. Later
professional transa ctions tended to inn
part heavy tone TO quotations, and
In the last hour the railroad shares oe-
came little weaker than they had
been in the morning. A moderate
growth of activity in the way OF short
sales followed the receipt of dispatches
from Washington which indicated that
further effort would be necessary to
pass LEGISLATION for relief of the rail-
roads. The Street had been counting
on favorable consideration Of the Wins
low bill in the House, but when it was
learned that the necessary two-thirds
vote had not been accorded the meas-
ure. which would permit the Treasury
to make partial payment OF the debt
due the carriers under the guarantee
of last year, railroad shares did not
react abruptly. A reason for this prob
ably was belief that with strong forces
supporting the contention of the roads
some feasible plan would be proposed
and carried through before the end of
the Congressional session.
In the light of the general state of
credit, considerable Importance is at
tached to the movement for liquidation
of a portion of the $3.50, 900 to which
the roads are entitled Evidence has
come from both railroad and banking
quarters that delay in receipt Of funds
which they are to get In the end pre-
overdue bills. Further than that. the
corporations to which the roads owe
money are also handicapped through
carrying unllquidated railroad accounts,
and the process reaches out in a WIDEN
ing circle which involves loans and
open accounts probably much in excess
of the sum which the roads have COM
ing from the Government.
In yesterdays trading in stocks Chi
cago and Northwestern, Great Northern
preferred. Northern Pacific and the Read
ing preferred issues were under greater
pressure than other rails. Steel and Pc
troleum issues were decidedly irregular.
some declining as much as a point, while
others were fairly steady. For the time
being more interest Is attached to the
rail stocks than to the others, the reason
beng that the problems of producing
companies have become pretty well
known. Some of them have been met
and their outlook is gradually improv-
ing On the other hand, the carriers
have not only the burden of inadequate
income to carry, but are also faced by
contest with labor, the outcome of which
cannot yet be measured. That the
Labor Board would hear the side of the
railway unions before acting in any
way on the proposals OF the railroad
managers was taken for granted. and
prior to next Thursday It is likely that
representatives or railroad Workers Will
be heard in detail.
The continued strong tone of the
money market was not surprising to
those who had studied the week end
bank statements. Again last week the
Reserve Bank at New York was i'm
PEELED to borrow extensively Of other in
stitutions. the Boston. philadelphia,
Cleveland and San Francisco banks be-
ing called on to take s1s.o0o.ooo more
of acceptances In addition to the $751;
500. 900 which three OF these banks hsu
for New York account In the week be-
fore. Every reserve bank improved its
reserve position. with the exception of
institutions in New York, Philadelphia
and Dallas.
Sterling exchange gained slightly yes
terday, and the other European rates
were firm.
Cotton declined and grain also. wheat
receding more than cents a bushel.