The New York herald., 1921-02-20
FINANCIAL NEWS
AND COMMENT
Weakness and Unsettlement
Continue i'm StOcks-Silver
at New Low.

The stock market continued yesterday
tho generally unsettled price situation
OF Friday. together with the sharp weak
ness of particular issues which marked
Fridays session. The explanation lay.
as before. In the apathy Of the public
toward the share list. a situation which
affords a fertile field for speculative
operations for tho decline Moreover.
the way that several Industrial and
shipping stocks melted down suggested
liquidation from quarters where thought
is turning toward possible dividend re-
ductlons or omissions altogether Allan
tic, Gulf and West Indies fell points
net under dealings which showed an
absence of support. American Woolen's
decline OF more than s points denoted
professional activity. which indirectly
had connection with the decidedly un-
favorable statement OF the Central
Leather Company for 1920. Realizing
through the report that the latter con-
cern had suffered fully as great loss
through business depression and shrink
age of inventory values as rumor had
predicted, speculative hands Immediate
ly turned to shares OF other companies
whose writeoffs have yet to be an
nounced. A deficit OF moro than $685.
oOO, 600, in contrast to a surplus or
Ss,3Oo.OO0 in 1919. presented a vidid pic
ture OF what the movement Of prices and
contraction of buying meant for the
great leather producer in the second half
Of 1920.
Utah Copper reacted abruptly without
any new explanation of speculative SEN
timent toward the shares 1t was easier
to point toward factors making for
weakness among some OF the petroleum
stocks, notably Mexican Petroleum and
allied issues. News dispatches which
stated that President Obregon appar-
emily had turned away from the liberal
policy toward American oil producers
which was recently noted were sufficient
to arouse selling pressure. But it was
not clear in the local interpretations OF
the Mexican attitude toward drilling
operations that the situation had really
changed in the last few days. The legal
complications affecting petroleum grants
and production privileges are too con-
fusing for the lay mind to comprehend,
and II the head of the Mexican Govern
ment should act in a way to embarrass
American organizations south OF the
border it would be reversion of his
previous leanlngs.
The foreign exchanges declined, ster-
ling receding 29s cents to the pound
The reactions of Friday and yesterday
wiped out about all of the Improvement
which the London rate had recorded In
the fore part of the week, and the same
experience was shown by some OK the
other European rates. Chinese quota
tions fell half cent to a full cent, re-
fecting another recession of silver to a
new low record at SSAd. in London.
The story Of weak, unsettled prices was
extended into cotton, the March option
touching a new low point for the year
at 1895 cents d pound. But wheat fu-
lures rallied after early softness: this
market has been unusually sensitive
to speculative influences OF late. and
il is more than possible that current
exports, at a rate higher than year
ago. will have bearing upon prices be-
fore long.
The combined statement of the Fed
eral Reserve system was made avail
able in New York at 3 80 o'clock yes
terday, earlier than at any time in the
past. Expectation in respect to in
creases OF gold reserve and aggregate
reserve were borne out while heavy re-
duction Of borrowings by member insti-
tutions was disclosed In q fall OF more
than $50. 1000, 900 in rediscounts and bill
holdings. In consequence of the growth
Of S1O,S0O. 900 In reserve, a recession of
1925. 500. 900 in net deposits and a de-
cline Of nearly 13.000. 900 in circulating
Federal Reserve notes the ratio of cash
to note and deposit liabilities advanced
from 49.6 to 50.3 per cent year be-
fore the ratio was 7.6 per cent lower
The New York Bank reported the un-
usual gain of s25,5O0.O0O in gold re-
serve, while bill holdings declined near
| ly s41.000.G00 compared with the total
Of the week before. The reserves ratio
advanced 2.3 per cent. on the week to