The New York herald., 1921-01-20
FINANCIAL NEWS
AND COMMENT
Stock Market Shows Strength
in Spots-Specialties Are
in Lead.

The strength OF Industrial stocks in
Yesterdays market would have been
more convincing II fewer specialties had
stood in the forefront OF the rise. The
strong tone here and there probably
would have drawn greater attention
/ from those hopeful OF Improvement In
underlying business conditions had is
sues less susceptible to pool operations
been with the leaders. It was evident,
however. that offerings were rather
scanty among petroleum, automobile,
rubber and miscellaneous shares. which
entire list grew firrner as time passed.
Net gains ran from a point 20 more
than five points among active shares.
The rails generally scored fractional ad-
vances. and bonds Of railroad companies
especially OF properties reorganized In
recent years. continued In demand. In
the light of Indifferent dealings I'm stocks
on Monday and Tuesday. It was not
strange that the Street was rather scep-
teal of the sudden Improvement of in
dustrials. and the stiffening OF the call
loan rate from to per cent In the
afternoon naturally aroused the ques-
tlon whether a prolonged upturn at this
time would not run afoul OF a tenn
porarily firmer money situation. II Is
not to be overlooked that. while the
broad tendency OF money rates has been
toward a position Of ease, the fact has
been disclosed clearly in recent bank
statements that the movement for loan
reduction at the Reserve banks Is maxi
ing steady progress, and whenever rates
in the New York call market get low
funds will flow away from this centre
for the retirement of rediscounts.
From now on it is likely that the
situation of the steel and iron trade
will be watched with closer attention In
financial circles than in the immediate
past. Being later than other lines of
industry In reflecting last autumn's
slump of business, steel probably has
further readjustments to make before
the outlook for manufacturing and
prices viii be made clear.
Some significance is attached TO yes
terday's trade reviews. which noted that
the Steel Corporations activities had be-
come less uniform. production at certain
mills being smaller than they were a
week ago. Pig iron, It Is reported is in
clined lower when transactions in sub
stantial tonnages come under negotia-
ton; in fact, the entire steel and iron
price situation contains enough uneven
features 10 forecast a number of reduc-
new buying can be attracted in volume.
What Is of chief Importance to consum-
ers and the financial community. is the
attitude which the major unit in the
trade viii take toward its long estab-
lished price schedule in case declining
mill operations indicate that the market
will remain sluggish under the expecta-
ton OF price cuts.
The frmness Of French exchange
showed that the market was paying
little attention TO the rather pesslmistic
news from the other side about French
finances and uncertainty over German
reparation payments. But 1t might be
easy to overemphasize the influence Of
events overseas in terms of the ex-
changes. for rates evidently have paid
more attention to possibilities of foreign
government loans in the United States
than to matters which may become de-
cldedly clearer when the French and
British Governments talk over their af-
fairs in London next week French
francs advanced yesterday from s.21 to
e.45 cents each and the Belgian rate
moved up from e.54 TO s.77 cents 10 the
franc. Sterling was weak In the morn
ing but recovered for net gain OF three
quarters OF a cent at the close, the nnal
check rate being 3.75%.
Grain futures declined slightly more
than 2 cents a bushel and cotton moved
of under the influence of pressure from
Liverpool.