The New York herald., 1921-06-01
FINANCIAL NEWS
AND COMMENT
Stocks Recede in Quiet Market
-Germany Makes Repara-
tons Deposit Here.

Stocks continued yesterday under tho
restraint imposed on dealings by cur
rent unfavorable events in industry. tho
character OF the market being exactly
the same as it was before the triple
holiday. The passing of the Pierce Ar
row Corporations preferred stock divi-
dend and the elimination of one or two
others OF lesser Importance for specula-
tive consideration worked to promote
selling here and there. Near the end of
holding up fairly well during the greater
part of the day. That movement ap-
peared TO have no relation to the ex-
pected decision on wages by the Rail-
road Labor Board to-day. but had its
roots in suggestions from Washington
that measures aimed at 2 cut of freight
rates might come soon. The Street has
not attempted TO discount the wage rul-
ing in one way or the other as far as
security prices are concerned. which is
not strange, despite the broad influence
which the decision may have. for the
reason that no one knows whether
10 or Is per cent reduction will be OF
immediate influence in helping net In
come or will not be significant until inn
provement Of traffic tends to uplift rail-
road sNoss revenue.
steel, oil and sugar stocks and several
motor shares were under greater pres
sure than were other issue. The oil
share market evidently toe dore notice
of evidence of accommodating stocks OF
crude petroleum and certain refined
products. which is finding reflection in
price concessions and efforts in several
fields to check production. A reaction
of 1Ss points in United States Steel COM
mon was a notable movement of tho
day That decline and renewed recess
sions of independent steels seemed to
register the trading opinion of COM
ment made at last weeks meeting of the
American Iron and Steel Institute. At
that gathering of leading producers
there was no effort to minimize the
present depressed state of the industry.
and the market community. in the mood
of the last fortnight. is not inclined to
look ahead to the better times which
Judge Gary, Charles M. Schwab and
others see in the distance
Although stocks yielded rather easily
TO selling, there was at no time heavy
and persistent pressure anywhere. The
In, lee
portions the operations of professional
spectators. who spread their activities
over wide list. To the observer 1t
seemed as though sales, while they
brought results almost everywhere in the
list. were made rather cautiously, pos
sibly because Of the impression in trad
Ing quarters that a substantial short in
terest had arisen In the last month and
that on that foundation a quick rally
might develop should favorable item
of news come forward.
Foreign exchanges fell sharply in early
transactions, the process evening up the
New York exchange market and that of
London. in which quotations had drawn
vailed here. But there was a quick re-
covery from the cents recession of
sterling, the initial price being compared
with the final quotation of last Saturday,
and at the close the rate OF 3.ss% was
only half cent lower than it was at the
week end. Continental exchanges ad-
vanced also. An explanation of last
weeks fall of sterling and francs lay In
yesterdays news that the Reichsoank
had deposited through agents hero some
SS5 900, 900 in the Federal Reserve Bank
on account OF the first reparations In
stalment Of which between S15. 900
and $50. 0.000,000 had been transferred
last week, mainly through exchange.
Call money advanced again from z
per cent to IA per cent. stifrenlng
tendency which may be followed by ease
ment after to-day's shifting OF funds be
completed. May wheat advanced briskly
as the contract expired. but the July
wheat option was less active.