The New York herald., 1921-04-13
FINANCIAL NEWS
AND COMMENT
Presidents Message of Little
Effect on Stocks-Steel
Prices Cut.

The financial markets found in Presi-
dent Harding's message to Congress
yesterday very little that had not been
outlined in news dispatches during the
last three weeks. The suggestion that
excess profits taxation be eliminated.
the statement that railroad rates and
operating costs ought to be reduced, the
recommendation of an instant emer-
gency tariff law. 10 be followed by per-
manent revision later. and the reference
to the country's position toward the
League of Nations had been contem-
plated by Wall Street piecemeal In re-
cent days. So it was not surprising that
stocks should make practically no re-
Election OF the address, the character Of
dealings in the late afternoon being the
same as in the hours preceding the
Presidents appearance before the legis-
lative bodies. The independent steel
shares were driven further down. con-
tinuing the reaction of Monday. with
net losses of to 31a points in Republic
Iron and Steel. Lackawanna and Sloss
Sheffield Iron and Steel The movement
Of those stocks supplied about all the
interest there was in the market, except
for a sharp advance of International
Paper when the report for 1920 was
issued, showing profits equal to more
than $50 share Of junior stock Evil
dence of such extraordinary prosperity
as this was something of a novelty to
| a market following which had been
accustomed to dreary procession Oh
deficits and passed or reduced industrial
company dividends.
The development Of greatest impor-
tance during the day-the reduction OF
prices by the United States Steel Cor
poration-did not become known unti'
long after the markets had closed. Other
wise speculative ventures among the
shares of competing companies might
have had a different shading. as 1t Ia
believed that the steel trade will re-
ceiye encouragement for sales from the
action of the largest producing unit
The cuts involved practically all the
major products.
The rail- shares were somewhat more
steady than were many Of the industrial
issues in the final hour of business.
which may or may not have been related
to official notice OF the Chief Executive
that the Administration was considering
closely the factors working for present
unsatisfactory results from operation OF
the carriers. But the proposal for
Congressional investigation OF the rail-
road situation. as proposed by the Presi-
dent. was rather bare of promise for
an early readjustment of those influences
most destructive to profits. Investors In
rail securities would much prefer a
short cut toward economies of opera
ton. which, in turn. would lead to re-
duction Of freight and passenger charges.
srhe action of manufacturing. ole and
mining shares prior to the appearance
of the message indicated that fair
amount of short covering had been in
duced by thought of a possible price
stimulus to come from the Presidents
words. Stocks lately under pressure
were firm. disclosing real strength in
the cases Of copper and automobile is
sues: but the movement had not much
life and in the afternoon business turned
dull. Call money remained at per cent.
Probably, preparation for mid-month
banking operations. hinged on the sale
by the Treasury of s15o.o00.o0o new
certificates, the distribution of some
$40, 100000 in Liberty bond interest
money and various dividend disburse-
ments. affected the money market and is
likely to do so for the next few days.