The Topeka state journal., 1921-12-31
DefIation and Adjustment
Marked the Year 1921.
Security Prices Stnrted Upward
Again in August.
STEEL WAS FINANCIAL ANCHOR
Many American IndustrlaIs
Have Not Recovered Ground.
Huge Investments in Short
Term Notes and Long Bonds.

New York, Dec. 31.-Nineteen hun
dred and twenty-one was a year OF
, liquidation and adjustment in all Sc
curity markets and in operations gem
orally affecting world finance and
business.
1t had been preceded by a year OF
continuous liquidation and decline in
1920 but at the end Of that year the
market developed stronger conditions
which were maintained until well into
the first part of 1921.
1t was not long. however. before
the changed conditions in business.
disappointment over promises Of re-
duced labor cost and a strange atti-
tude on the part of the banking man
ayers of the country to continually
contract banking accommodations by
the payment of Indebtedness to the
federal reserve institutions practically
choked off everything in the shape OF
an improving tendency and was ef-
fective in causing the lowest prices
for over two years to be established
in the security trading groups gem
orally during the spring and summer
months.
Z. S. Steel Was Anchor.
Important issues like the leading
steel industrials led the way for the
general list but United States steel
proved to be an anchor holding the
That leading industrials from a high
of the year of S61s early in May
yielded to 20 II late in June but altho
its statements for the succeeding
quarters of the year showed steel
business at its lowest ebb since 1904
the market position of this stock i'm
proved until at the end of the year II
was back around the highest level es-
tablished in the first week of May.
There were other industries, how
cVTo hat
OF values without prospect of recovery
in the near future. Among these was
American sugar refining which sold
down from SO in January to new low
record of Al e in October. In the pre-
eeding year, this stock had sold as
hign as 142 IS. The changed condi-
tions had a more direct influence on
the stock on this and other sugar is
sues than on any other industrial
group and was the definite result OF
the collapse in the sugar industry gen
orally which was indicated by the de-
cline in the price OF refined sugar to
below five cents pound after start
ing the year at cents a pound and
having been acquired at prices ap-
parently representing q value OF
around 30 cents a pound in 1920.
Security Values GO Upward
After the low prices were recorded
in the period ranging from early in
June to near the end of August. Sc
curity values started upward. The
situation was steadied at frequent in
tervals by evidence of a huge accum-
ulation of funds seeking investment
which could be definitely measured by
over subscriptions to various issues Of
short term notes and long term bonds.
The overflow of subscriptions TO
these bond issues was diverted in the
latter part of the year to the buying
Of better class of dividend paying rail-
road shares. Many Of these issues
moved up with a good deal OF vigor
in the last two months OF the year but
did not reach the levels prevailing
year ago. A feature Of the railroad
group was the drop in Chicago, Mil
waukee & st. Paul. which from 81 on
January IL, dropped to 175z late in
December, the lowest price touched
by that stock since 1877.
Initiation to DefIatiOn.
The money situation was changed
from one of initiation to one OF defla-
ton. Total gold reserves OF the fed
eral reserve banks on last Thursday
were s2,s69. 500 600, against s2,O59,-
$4,000 on the corresponding day in
1920. Federal reserve note Liabilities
and deposits combined at the end OF
the year was I'll per cent against
45.1 per cent a year ago. The twelve
federal reserve banks now hold g7.2
per cent gold against note liabilities
compared with sos per cent a year
ago.
In the last week OF the year an ad-
vancing tendency was partly nul1ified
by heavy sales Of securities to estab-
lish losses in compiling tax return.
Canadian U'rafns cror-F,~,,,,.d