Evening star., 1921-05-05
STOCKS ARE FIRM,
RAILS IN DEMAND
By STUART r. WEST.

NEW YORK. May 5-The reduce
ton Of the New York federal reserve
discount on commercial paper did
not, Of course. come at all unexpected
ly. A week ago this action was pre-
dicted for the immediate future, as
the logical sequence to the reduction
in the Bank of England rate.
Both mea sures reflected the COM
mon judgment in high financial quar-
ters that the great world strain on
capital passed it's peak at the close Of
1920. and that the improvement since
then has brought about a sufficient
degree of dehation to warrant some
letting down of the bars.
The lowering Of the official discount
rate at New. York made itself felt
quite as decisively in bond and stock
markets. Lenders of time money re.
duced their offers from to Ga per
cent. but even at this concession
found very few takers. Wall. street
borrowers continued to bid 61s per
cent for this class Of funds. but
showed no anxiety to do business. be-
obtainable later. and that in the
meantime it will be just as cheap and
quite safe to arrange their accommo-
dations in the market for call loans.
Advances of another half point to a
point were the rule all through the
bond list, with particular inquiry
for railroad bonds.
Rails Are Active.
In the stock market more, than on
interest with the industrials This
was not due to any fresh impulse
from the lowered bank rate. but
rather was a further expression OF
the confidence shown yesterday that
the 20 per cent cut in steel wages
pointed directly and Enthusiastically to
the outcome of the railway wage con-
troversy.
Dividend-paying rails were more
actively bought than at any time in
the last three months. but there was
still keener demand for the Low
Rock Island. Kansas City Southern
st. Louis and San Francisco and Bal.
timore and Ohio.
In the industrial list. after the
sharp outburst Of buying. which
greeted the overnight news of the
action. heavy profit-taking was en-.
countered. which caused some irreg.
ularity for a while. But. outside Of
very few groups the upward drif,
was maintained consistently under q
steady flow Of buying. orders. which
an outside demand such. as has no,
been seen on any day since January.
United States Realty. =
The move in United States. Realty
which carried the stock through it.
previous high for the year was based
upon the annual report due toward
the end Of the month. but the pre-.
liminary figures of which are already
known to those on the inside; Fo,
it is expected that Realty will show
about. $lo a share, which is thre<
times the dividend that used to be
paid prior to 1914. AS dividend
payer the stock sold as high as sSk
Then its afhiiations were Of highly
recent years the management has
been conservative and instead Of pay.
ing out surplus earnings to share.
holders. has been erllarging it's build
ing depreciation fund. gathering to.
gether q. fair sized quick. asset ae'
therefore in stronger position al
together than. il was in the 'spechla:
tive days. when the market price ol
the shares was 80 to 40 points higher
At the close of the fiscal year, 1919
1920. there were outstanding little
5 per cent bonds. which msture July
l1924. 1t is expected that the coming
report viii show these bonds cut
down still further so that the annual
interest charge remaining will not
be more perhaps than $35Q.O0o "a
100000. Subject only to this small
obligation Realty r'ock Will be q
clear lien on the CONSTRUCTION bnsi'
ness OF the company and on the en-.
tire ecuity of the office buildings out
c:::so tie Sctas! x9-tssse."