The New York herald., 1921-04-12
FINANCIAL NEWS
AND COMMENT
Stock Market Is Dull and
Traders Await President
Harding's Message.

| The stock market was directed and
controlled yesterday by two factors OF
considerable Importance TO speculative
plans. The first, which found reflection
in strength in particular departments
was relief over prospect of an early
settlement of the British coal strike.
The other was the desire Of market fol-
lowers to learn President Hardings
statement of policies and recommended
tions for business and the railroads be-
fore making commitments in stocks
The latter factor tended TO make trad
ing dull. The Presidents views, Il be
made known to Congress to-day. re
expected to be not only suggestive OF
istration In dealing with several press
ing problems but also indicative of
progress already made IN attacking
them. It was in respect to the latter
inclined TO wait for facts, for the finan-
cial community has been informed only
in general terms OK activity in washing
ton in connection with taxation and
tariff matters and with efforts to bring
railroad Employers and employees to an
understanding on wages.
The probable course of the call money
rates had been forecast by the upturn
OF last Friday and the sharp fall of de-
posts reported by the associated banks.
Call loans were at per cent. through
out the day. and while the rate may
have had influence TO check purchases
OF securities. IT was not dominant In
shaping market events. Study OF the
Federal reserve statement in connection
with that Of the local Clearing House
indicated that funds had moved away
from New York In heavy volume during
the closing days of last week. Once
again It has been shown that when the
rate for temporary collateral loans falls
measurably below Reserve bank redis-
count rates and interest charges for ac-
| ceptances an adjustment is called for at
the expense OF the call loan market
But the situation is to be considered
bothersome rather than damaging, for
the offset Is found In the fact that the
banking sysem as whole is working
steadily toward an easier position.
Trading in the stock market consisted
! of special movements. OF which the only
/ ono to point toward other than specu-
lative manmuvres was the recession Of
several railroad issues. Pennsylvania
and Northern Pacific reached down to
new low levels, continuing their tendency
OF last Saturday. The tale OF poor rail-
way earnings has become familiar. but
| this fact does not eliminate the effect
bound to come from yesterdays presen-
tation Of results in February. A dismal
outlook. unless relief Is found. is con-
tanned in figures showing that more
than half of 200 companies were unable
to earn operating expenses and taxes In
that month. Railroad bonds lost some
/ OF the frmness which characterized last
weeks transactions, although the firmer
money tone may have been a cause
rather than reports of income. Steel
! shares were under pressure at times,
| together with a number OF specialties
but there were sizeable advances OF rub
ber. copper and oil issues. and prices
at the end of the day disclosed merely
an irregular tendency.
The cheerful news from England aided
the foreign exchanges. sterling gaining
nearly cents. Continental rates moved
forward in sympathy with a markedly
firm tone in italian quotations. Cotton
likewise recorded in q substantial flow
OF short covering an Improvement OF
sentiment toward the British manufac-
turing outlook In grain a fall OF 5h
cents in the May option seemed to re-
fleet the weight coming upon the near
contract OF the excellent crop prospect.
All the grains lost ground.