The New York herald., 1921-01-18
FINANCIAL NEWS
AND COMMENT
Stock Market Dull and Mixed
in MOvements-French and
German Exchanges Up.

The stock market passed yesterday
into a state of inertia which bore out
fully the promise made last week in a
dwindling flow OF transactions and a
narrowing OF the trading list. So mixed
were the sluggish fluctuations that 1t
was difficult at times to decide whether
the tone was firm or heavy A quiet
state OF business of this sort suggests
that professional hands are about the
only ones engaged. and these had diff
Guilty In making an impression upon the
more prominent shares either for the
rise or the fall. The Reading issues de-
clined as easily as they had advanced
on Friday and Saturday. and copper
stocks. bid upward for a time on the
strength OF rumors of a suggested
merger of companies. lost part of
their gains before the close. Local
traction shares were more prominent
than others because they were able to
retain most OF their to 2 point adj
vances, but speculative support of this
group was based upon suggestions from
Albany that legislators would be friend
ly to plans for higher fares and moth
ing of a really solid substance appeared
permanent. The bonds of street rail-
way companies gained ground. their
Improvement running parallel to addi-
tional advances of Liberty and railroad
bonds. Call money lent at per cent
on the Stock Exchange; the outside
money market contained easier rates
than this without, however. bringing
out the Az per cent. offerings of last
week.
The action OF stocks was in line with
predictions Of some competent observ-
ers of market conditions when the hasty
retirement of the 1920 short interest oc-
Cured a few days ago. The urgent pur-
chases Of embarrassed spectators in in
dustrial shares being completed. it was
felt that business would be likely to
wait for a new incentive before start
ing up again on a wide scale. At the
moment no one can tell whether the next
Of reaction. Certain of the factors work
ing for lower prices were undoubtedly
exhausted with the end of the old year.
the chief ones being comprised in sales
and in the desire of holders of stocks
to record actual losses. There also
passed out OF the guardianship of bear
interests the more depressing influences
upon industry when the textile trade be-
gan to look up early this month. But
the outlook for really marked i'm
provement Of industry is not yet clear
nor are there yet plain indications of
what the Congress will do in respect to
tariff and taxation legislation. The ex-
perience of the past shows that stocks
are wont to move in either direction
considerably ahead of events in busi-
ness, and on this ground there is reason
to believe that what happened in the
last half of 1920 discounted not only the
great slump Of manufacturing and dis
tribution OF that period. but also slug
gish trade condition that seems to lie
ahead for a time. In investment cir
cles, referring to the bankers with plans
for new offerings, an interval of stock
market quiet and inconsequential fluc-
tuation would not be unwelcome A
number of substantial foreign Govern
ment offerings are on the carpet, to-
gether with considerable new financing
by corporations, States and cities. which
will come along as rapidly as credit con-
ditions warrant.
feature Of yesterdays strong for
eign exchange market was the rise of
French and German rates. The advance
of francs from 6.09 to $50 and of
marks from 1.49 cents to 1.64 cents each
looked like a speculative response to the
thought that the prospective policies of
the BRAND Cabinet in Paris would en-
tail a more liberal though firm attitude
toward reparatlon payments. Sterling
gained 3h cents to 3.671a. Cotton adj
vanced after an early decline. Wheat
gained nearly 3 cents bushel, Offset
ting much of Saturdays decline.