The New York herald., 1921-12-23
FINANCIAL NEWS
AND COMMENT
Oils Prominent in Fall of
Stocks and Bonds Dull
Reserve Loans Rise.

With few exceptions, stocks went
lower than they did on Wednesday in
yesterdays trading, oil issues being
prominent in the decline. which reached
from a point to ~ points among the
more active groups. The work OF pro-
fessional traders was plain enough in
rather sharp reactions of two or three
Industrial stocks, and it looked as
though the market as a whole was af-
fected more by activities of shore sellers
than by efforts of spectators with
paper profits to convert them into cash
news contained several items OF use
to spectators working for reaction.
notably reports OF price cuts in wire
products by a United States Steel Cor
poration subsidiary and a reported salt
water menace in the edges of the new
est Texas petroleum pool But stocks
likely to be most affected by those
events were less unsteady than were
many others. In fact, Steel common
left off at the same price as it did on
Wednesday. Call money got down to
) per cent. after renewals of standing
loans had been made at per cent.
In market parlance the stock and the
bond markets acted as though they had
persistent strength and heavy dealings.
Liberty bonds again led moderate re-
action among funded securities, and II
was patent in bond market comment
that this weeks rapid output OF new
offerings had given distributors sup
plies sufficient to keep them busy for
several days. In addition to si0.oOo000
or so of municipal and foreign govern
ment bonds. there have come into the
hands OF distributors this week more
than s7o.t0O.0Oo industrial and railroad
issues. and that mass is to be weighed
in considerating the markets absorptive
powers in connection with the big New
York city offering of last week and
small amounts. Were ii not for the
fact that funds are being released from
industry and trade and are seeking in
vestment at good rates, the weight of
new issues OF this month probably
would have decided effect on prices.
AS it is, bond quotations have held up
in rather surprising fashion and the
potential demand is considered to be
substantial.
There was little doing in the cotton
market and grain futures after
strong period in the morning settled
back to Wednesdays levels, the May
and July contracts, in fact, going
slightly lower at the close. Sterling ex-
exchange declined more than cent to
the pound and francs and marks were
soft at times. but the market contained
little life and the movement seemed to
be only the record OF speculative selling
for the fall.
AS the reserve banks gained less than
100000 in gold during the week and
lost about $10000,000 in silver and
other reserve at the same time that
serve note circulation increased $53,-
100000, there was a fall OF nearly 2
per cent. in the ratio OF cash to deposit
and note liabilities. In the correspond
ing 1920 week circulating notes de-
clincd more than $4,000, 900. but notes
then were beginning the great contrac-
ton from the peak OF the autumns
record total Of currency which proceeded
with much rapidity during 1921. The
growth Of note circulation. together with
an enlargement Of loans amounting to
more than S7O.O0o.O0O during the last
week, suggested that the Christmas trade
demands were larger than had been ex-
pected. But the expansion also was con-
nected with seasonal banking trans
actions and with Government operations.