The New York herald., 1921-03-03
FINANCIAL NEWS
AND COMMENT
Stocks Recover on Short Cover
ing-Call Money Again
at 6 Per Cent.

The fairly brisk recovery OF stocks
which occurred yesterday afternoon
could be attributed almost wholly TO the
covering OF short sales. The grist Of
news of outside events contained no
more matter of a constructive nature
than Il did Tuesday. hence there seemed
70 be little encouragement for buying
for the rise but the rather limited group
Of professional traders whose efforts
were so potent last week found during
the morning that following could not
be attracted through drives against par
ticular issues. The stubborn front pre-
sented by Crucible Steel, coupled with
early Improvement OF Northern Pacific
and Great Northern preferred, caused
the more tiInid spectators to reduce
their short lines and when the call
money rate receded from Z to 6 per cent
the buying movement gained In force.
generally 1 point TO 2 points higher
than on the day before. There were
practically no weak spots. excepting
American Beet Sugar. whose dividend
prospects came in for discussion.
A reason for such a rally as yester-
days could be found In an impression
among traders that. for the time being
at least, the market had been oversold.
There were indications of this on Tues
day. for il was noted that while Penn
sylvania Railroad and several other rail
issues were under pressure then there
was rather steady undertone among
industrial stocks that had lately been
depressed persistently It goes without
saying that an improvement on technical
conditions carries little suggestion
about tha real outlook for security
prices. If there was any relation be-
tween the days business and thoughts
about possibilities en.ailed in the Lon
don conference over the German repara-
ton It failed to show itself In the course
Of quotations. The foreign exchanges
also displayed degree of aloofness
from the important deliberations abroad.
although relatively steady price front
suggested confidence that some positive
developments OF a favorable nature
would appear before the meeting was
adjourned. The days cabled news
pointed toward compulsory measures by
the allied Governments for the enforce
ment of original demands.
The information forthcoming during
the day about industry continued q tale
now become familiar, including one or
two reductions or eliminat.ons of divi-
dends and reports OF declining opera
tions at mill and factory. From the
steel regions came news which showed
that curtailment OF production was go
ing on rapidly. The IRON Age reported
that the Steel Corporations Chicago
plants had reached q so per cent ingot
capacity with s5 per cent. at Pittsburgh,
a decline OF more than Per cent. dur
ing the last week. The daily average
output of pig iron throughout the coun-
try during February amounting to
ss.1S7 tons, was the smallest for two
years with the exception OF two months
early In 1919. The number OF furnaces
In blast is less than half the number on
October I last year. Quite naturally.
with these visible evidences OF falling
operations and stagnant buying. both
steel and iron prices have receded fur
ther. Evidently more speed than before
was recorded toward readtustment of the
industry. but the reluctance of buyers 70
come into the market continues to make
uncertain the time when the process may
be considered complete.
The easement OF the call loan rate re-
ceived no great attention outside OF the
speculative following of stocks. This
was because swings between Z and per
cent. have meant practically nothing
during the last month in respect to a
real and immediate tendency toward
easy money. Cotton declined again,
establishing new low records for several
options. with late rally. Wheat fu-
lures gained about cent q bushel.