The Washington herald., 1921-04-29
GENERAL STOCK
MARKET FIGURES
AT HIGHER LEVEL
Studebaker Continues to
Rise With Sensational
Advance.
MEXICAN PETE OFF
Rails Recover Previous Losses
Despite Reaction Due
To High Money.

NEW YORK, April 2s.-Trading
on the Stock Exchange continued
active. with prices generally higher
and with Studebaker and General
Asphalt each contributing further
sharp rises. Mexican Petroleum, on
the other hand. was heavily sold.
and reacted considerably. The news
from England, which included
lowering of the bank rate and mote
optimistic reports regarding the coal
controversy, acted as an offset to the
French attitude with regard to Ger
many, and the underlying tone was
firm. Toward the close, despite
reaction due to a raising of the rate
on caIl money from Ga per cent to
I, the rails had recovered their
losses Of yesterday, while the indus
trials showed many gains OF from
one to four points.
Exchange.
Reports of the better chances Of
a strike settlement apparently over
balanced the adverse news regarding
the reparations negotiations, as far
as sterling exchange was concerned,
since the quotation advanced Il of a
cent to 1896. which corresponds 70
the best price reached during re-
cent trading. Heavy selling OF dol
lars in London and of pounds in
this market was reported. French
francs, which were in fair demand.
gained four points at 7.61 cents, and
italian lire were unchanged. Swiss
and Dutch quotations continued to
advance, and that on Sweden ral-
lied after yesterdays decline. Cana
dian dollars were lower at S9bc,
and the decline in the South Ameri-
can monies continued: the Argen-
tine peso being quoted at new low
Of 3lI3s cents
Money.
Reduction of its discount rate to
6h per cent by the Bank OF Eng
land was hardly unexpected. since
the best observers have pointed out
recently that the chief obstacle to
a lower rate was the crisis in the
labor situation. With the triple al
lance disrupted and with a better
outlook with regard to settle
ment- the coal strike, the COVER
nors evidently decided to give way
somewhat to the clamor of the easy
money party and to the inclination
of the treasury. At the same time,
It is clear that the reduction of one
half of one percent was less than
had been looked for. and II would
appear that in making the smaller
reduction the governors intend to
curb any extravagant ideas as t.
the present condition OF the money
market. All along misgivings have
been harbored in conservative
quarters lest a reduction in the rate
should be followed by an outburst
Of speculative activity. Both the
size of the present reduction and
the time chosen for il. however
are salch as to discourage exploita-
tion OF the event by the speculative
element The central banks. both
here and in England. doubtless
sympathize with the business mans
desire for cheaper money and will
dostheir part toward securing il tC
him as rapidly as underlying con-
ditions justify; they seem deter
mined, however. to prevent the mis-.
use of the credit which Is slowly
being obtained as the result of la.
borious liquidation.
British Statement.
This weeks British bank state.
merit should. in fact, be a corrective
to miSconception as to the existing
credit position. The ratio Of reserve
stands at 1873 per cent as compared
with 14.5 a week ago and both cir.
culation and deposit liabilities
show an increase. The French state.
ment- on the other hand, shows z
fair amount of contraction