The New York herald., 1921-04-29
FINANCIAL NEWS
AND COMMENT
Stocks Display General
Strength = Bank of Eng
lands Rate Drops to 6 1-2.

For yesterdays gen eral strength of
the stock market several obvious ex-
plantations appeared. OF value alike to
tho professional speculator and TO the
buyer who regulates his purchases by
developments in finance and business.
The event OF primary Importance was
the reduction OF the Bank of England's
minimum rate OF discount from to 6h
per cent, something expected for sew
on that account. because 1t reflected the
easing money and credit condition in
London and the lifting OF uncertainty
over the outcome OF British labor trou-
bles. That news was known before the
start of business in New York and
clearly offset disappointment attached to
the apparent collapse of Germany's
latest attempt to have the reparations
question settled.
The British banks action headed OF
the operations OF spectators for the fall
Of values who became active on Wednes-
day. when the Pennsylvania Railroad 8
dividend cut and other matters unfavor-
able to sentiment had left prices un-
settled. There was, soon after the open
ing of the New York Stock Exchange. a
resumption of efforts to bid up a half
dozen industrials under the leadership Of
Studebaker and General Asphalt and
while the rank and Ale of railroad and
manufacturing company issues hesitated
for a time there were few signs of weak
ness. 1t remained for several cheering
railroad statements OF operating results
in March to complete the discontinue
of the bear element. and in the final two
all classes of stocks strode forward In
! vigorous fashion. Net gains ran from
/ y TO more than points. the rails re-
covering their losses of Wednesday.
Steel stocks continued under the repres-
sive influence of recent reports of earn
ings. but Steel common gained a ftac-
ton and only one or two left off lower
than they did on the preceding day.
A reaction of the Bank of England 8
rate from the extraordinarily high level
established little more than year
ago is suggestive of probable similar
action soon by the local Reserve Bank !;
at least that thought was prominent in
i the minds of stock market followers
here The relaxing tendency of COM
mercial loan charges-mercantle bills
were again discounted under per cent.
yesterday-shows a shrinking demand
for accommodation OF the sort and that
in turn casts light on the situation of
| industry and trade. The cut in the Brit
ish bank rate was not great. It ap-
peared to be perhaps something of a
concession to the clamorous cheap
money party over there as well as a
response to the actual credit position.
AS viewed on this side, the demands OF
manufacturing and commerce are not
likely to be stimulated to an excessive
degree by the change. but 1t Is believed
that the lower rate will have an encour-
aging effect on sentiment and parallel
result is predicted in this country when
the Reserve board deems 1t advisable to
permit general concessions in redscount
charges.
| The March railroad reports were by
no means uniform in disclosing improve
ment in net income as compared with
those OF March, 1920. but several were
rather striking. The Southern Pacific.
for example. had an increase Of s1.S15,-
122 in gross revenue and a gain or
S1.336.s6I in net. The New York Cen
tral had about $4,000 more in gross
operating receipts. but drastic reduction
OF costs enabled the system to show
net income Of $3.e75,ooo. nearly six
times the amount reported year ear
lier. The Baltimore and Ohio converted
a decline Of s544.oOO in gross into an in
crease Of $2,175.0o0 in operating net
revenue.
CAN money rose from 6h to per
cent. In the afternoon. Sterling exchange
reached upward to s.s5, equalling the
years best level