The New York herald., 1921-12-30
FINANCIAL NEWS
AND COMMENT
Stocks Unsettled i'm Broad Mar
ket Caused by Sales for In
come Tax Record.

ihe Sbock market yesterday bore ear
marks OF considerable belated selling
for recording losses in income tax re-
turns for 1921, and an early unsettle-
ment of prices from that influence was
spectators on the short side. The list
of stocks dealt in was one of the broad
est OF the year. numerous inactive issues
coming out in large or small quantity.
The theory of heavy tax record sales
seemed to be well supported in heavy
turnovers OF General Motors and certain
railroad shares But there were always
buying orders ready not far under OPEN
ing prices. and in the case of General
Motors net decline of only three
eighths of point was caused by the
outpouring of more than 100000 shares.
Because Of temporary and artificial fac
tors in the trading the days price ten
dency was hardly to be considered as
reflective of developments in industry
and trade. Call money was per cent.
AN day. a rate which certainly disclosed
no strain on the money supply near the
end of the year.
Several interesting events appeared
during the day. but the connection be-
tween them and the markets was seen
chiefly in foreign exchange and grain.
The reported closing of the Banca
Italiana di Sconto in Rome was the sig
nal for extensive selling 81 lire exchange.
but after a reaction of 10 points its
quotation steadied and afterward recov-
cred part Of its loss. The other eX
changes seemed not to be affected. soma
being higher and others lower than they
We're on Wednesday. The news dis
patches indicated that the troubles Of
the Italian bank were peculiar to itself,
resulting from phases of industrial de-
flation and not duplicating other bank
ing institutions In Italy. The suspension
of the New York institution which is
owned by the Banca di Seonfo was with
out influence in the ma arkets or In refer
ence to other local banks.
Additional railroad reports of Novem-
ber results showed wide range in net
operating incomes, the st. Paul reporting
of November, 1920, and the Rock Island
and several others noted considerable
improvement. The estimate of broadest
scope indicates that the net revenue for
all the roads will be close to 100000. 900
when nlll returns are in, in contrast to
a suggested $50, 900. 900 when the initial
sta atements were made public, The actual
toral is of no great moment considered
Eith the fact that gross revenues of most
lines fell heavily and did not make a
very favorable comparison with their
incomes of October, while profits were
governed as much as In preceding
months by the ability of the roads to
reduce their operating costs.
The Reserve systems weekly state
ment showed that the return flow of
currency after holiday use had reduced
the volume of circulating Reserve notes
about s4.000.000. Deposits declined
$50. 100000 and total reserve was not
mucn changed from that of the preceding
week. the result Of the changes being a
recovery of the ratio of ca sh to note AMI
deposit liabilities from 70.7 per cent. to
7I.1 per cent. AS red!scounts (loans)
receded about s46,000.000. the report
forecast an easy money position in the
first weeks of the new year.
A reason for the recent firm tone of
wheat prices other than the one con-
tanned in export buying was disclosed
in the Governments report of condition
of the winter crop. The figure of 76 per
cent. was the lowest on record for the
season and IS per cent. below the ten
year average. 1t is too early to draw
complete deductions from the report,
especially as the acreage planted last
fall was nearly the same as that of
year earlier. but so low n condition be-
fore the most rigorous part of the winter
begins is hardly encouraging for large
yield.
Liberty bonds were irregular and
other bonds were rather dull.