The New York herald., 1921-02-22
FINANCIAL NEWS
AND COMMENT
Unfavorable Corporation Re-
ports Continue TO Influence
Stock Market.

Visual evidence of unfavora BILE results
in the last three months OF 1920. as re-
vealed in statements OF corporation
dealings in stocks. The porphyry cop
per mining companies were the ones TO
add to the record begun by the leather
concerns several days ago. 1t had been
forecast that the last quarter would
prove decidedly poor for mining opera
tions in fact the details OF distribution
and prices had long ago indicated what
the Utah Copper, Ray and Nevada Con-
solidated companies would show. But
coming at time when speculative en-
deavor was already directed against the
shares of many producing corporations,
the reports Of deficits lent force 10 short
sales. Probably considerable liquida-
ton also occurred with the effect OF
causing abrupt recessions here and there
and generally weak tone in the In
dustrial list. At the point OF furthest
reaction several stocks were 10 Z
points below Saturdays last quotations {:
a fairly brisk recovery near the end
of the day left net recessions running
from / point to more than 4 points.
The course OF business like that of the
lnal two days of last week. might be
considered a natural product of period
in which industrial improvement is in
its initial stages, not sufficiently evil
dent to attract speculative participation
by the public on the buying side Yet
Notwithstanding the unsettled state OF
trade and manufacturing and a lack of
knowledge of the immediate future of
the markets for commodities, the ques-
ton may be raised whether or not de-
liberate efforts to depress stocks are
losing sight OF real underlying condi-
tions. The persistent pressure against
Atlantic, Gulf and West Indies has been
accompanied by signs OF professional
activities which are not in keeping with
facts made public by the management
of this shipping and oil company. In
regard to other companies whose stocks
have come in for heavy attack and
liquidation. IL is patent in annual state
ments that writeoffs of inventory have
been drastic, suggesting that the process
has established n new and sound basis
for business this year
There are, however. several fields in
which readjustment, while already pur.
sued some distance, will evidently have
10 so further. News from the Youngs-
town district yesterday told of plans
Of, certain large steel producers to re-
duce prices coincident with new or ad-
dltional decreases of wages. The petro-
eum market continues in a nervous
and unsettled state by reason of price
to time in the last two months, ard
this despite indications that production
IN one or two important foreign pro-
ducing regions may recede after while
because of dwindling reserves. AS far
as the credit situation is concerned the
movement of loans is certainly in the
right direction and steady accreuons
TO the gold supply foreshadow much
higher ratio of the Federal Reserve
system's cash TO deposit and note liza.
bilties In banking quarters the i'm.
preston prevails that there may be
some indicat tons Of strain when the
tax payment date comes next month.
but by that time liquidation Of grain
and goods should bring the country's
loan account to n level where prepara-
lions for tax payments will have only
a slight effect in the way of expansion
Call money went back to per cent.
on the Stock Exchange yesterday after
renewals had been made at per
cent. and again loans were made out
side at ~ per cent.
The foreign exchanges rallied with
considerable vigor. taking their cue
from quotations at London. Sterling
advanced from S.s5% to ASST. and
francs. marks and other Confidential
rates improved. The establishment OF
new low record for silver was &c
fiected in fall OF a cent in Chinese
rates Wheat advanced and cotton held
steady.