The New York herald., 1921-02-09
FINANCIAL NEWS
AND COMMENT
Stocks Rise as Money Rate Is
Notwithstanding Exchange
Up 4 1-2 Cents.

A turnover OF stocks in the final hour
lof trading yesterday, which was three
times the sales of the initial hour and
seven times those OF the third hour.
measured the change OF sentiment that
accompanied an easing OF the call loan
rata From per cent, which had been
the lowest quotation since February /.
DEMAND Soans receded TO per cent on
the Shock. Exchange. and in the outside
market "a considerable amount of funds
was puts opt at per cent Time money
was sDstGly easier than on the day
before. hEt commercial paper continued
To be qupaed rather firmly at tx per
cent.
In view ~ the irregular tendency OF
money rates in the last six weeks it is
possible thsat too much emphasis was
laid In yesa ,rday's stock market upon
the reaction The fact that exceedingly
dull dealings, In stocks had marked busi-
ness for sevend days probably accounted
In part for the decline. as the demand
for funds to garry securities had been
small. Nevertheless. professional trad
ers welcomed yhe tightening OF money
strain as a signal to put forth effort on
the buying side, with the result that a
distinctly colorlass and indefinite price
trend OF the morAing was converted into
strength in the aaternoon+ net gain
of more than a point in sSteel common
told of an improved price situation even
more eloquentty than advances OF to
points in such volatile stocks as Baldwin
Locomotive. Crucible stqel. General AS
phalt. Houston Oil and Mexican Petre-
leum.
Changes which occurred in market
sentiment made 1t one of the most inter-
esting sessions of the month. especially
as the true significance Of some of the
days events was not defined altogether
during business hours. Stocks were slow
to reflect really buoyant market In the
foreign exchanges, especially sterling
and it appeared as though the possible
connection between that, movement, and
the money market was lost for a time
on followers Of security prices Then
the receipt of cabled news that German
Government representatives would, after
all, consult with allied commissioners on
the reparatiun question on March / in
London was received with apathy In the
Street. But when expectation became
fact In the case of call money. the sew
eral factors united to make uncomfort-
able the position of the holder Of short
contracts and to cause greater reluct-
ance In offerings.
1t would be a debatable question
whether the relaxation of money or the
indication of concessions by the German
authorities from their original attitude
toward the reparation plan was the more
important influence behind speculative
purchases of the exchanges. Between
January 9 and January 81, when call
money eased from per cent. to 8 per
cent and time money from per cent
to per cent, sterling advanced from
8.72& to the years highest point of
3.ssl5; but during the same period hopes
of a settlement OF the German indemnity
were also actively aiding in the uprurn
Of the exchanges. AT thesstime when
call money had temporary decline.
from December ~ ito December 81,
sterling advanced from 3.46ts to 3.52A.
only to react again as money stiffened.
Uhe sterling rate advanced yesterday
from s.ss% to s.ssA.
The passage of the winslow bill by
the House justified the expectations of
holders of the rail shares who had not
been moved to sell whom the measure
failed to receive the necessary votes on
the day before. News of the action In
Washington was received here before
the close of tho Exchange and played a
part IN q strong recovery Of Great
Northern preferred. New York Central.
Northern Pacific. Reading and other Is
sues. whose net gains were In excess Of
a point. 1t was believed that the Senate
would not delay in completing the task
necessary to permit partial payment OF
moneys due to the carriers from the
Treasury.
A strong bulge Of grain prices, after a
heavy opening. left wheat prices more
than cents higher than on Monday.
while corn advanced cents a bushsl.
Cotton also rallied vigorously. tho ten
dency in those markets evidently being
directed partly by money and the cx-
changes.