The New York herald., 1921-08-13
FINANCIAL NEWS
AND COMMENT
Stocks Rise Hesitatingly and
Close Near Top, Aided by
Reserve Showing.

While the action OF stocks was
hesitant AZ an times yesterday and the
upturn was punctuated by frequent bear
attacks upon particular indstrial issues
the tendency was upward after the first
hour and many issues closed near their
\ best prices. 1t was possible to explain
the recovery either as a natural develop
ment toward the close Of a week in
which the price drift had been down
ward or as a response to the weekly
Federal Reserve figures. In either case
one would ascribe the buying 10 traders
who bought back stocks previously sold
for the fall. There were no distinctive
changes which could be credited to new
and positive evidence OF improvement In
business. Nor did any of the declines
appear to reflect information about de-
pressing news in business and trade.
At the end Of the session gains Of a
point or more were recorded by Amer
lean Locomotive, American Sugar, Bald
win Locomotive, Chesapeake and Ohio
Crucible Steel. Famous Players, New
York Central Northern Pacific, Mexican
Petroleum. Texas Company and several
others. The diversity Of the list named
suggests that the rise was little more
than the familiar evening up" process
after reactionary market of several
days duration. About the only active
stock 10 show real weakness was Central
Leather.
The statement Of the reserve banks
came in for much discussion during the
day, especially against the background
Of per cent. call money. Inasmuch as
all the banks except the one at Boston
reported for the week a gain in the ratio
of cash to note and deposit liabilities, 1t
looked as though the relative firmness Of
demand loans at New York was in part
the result OF loan liquidation by member
banks of the interior. The desire to re-
duce rediscounts would entail the draw
ing down of bank balances at the East
ern centres, thus depicting the loanable
supplies for stock market use. The
Clearing House statement to-day may
show the extent of the movement OF
funds from this city during the week.
The Reserve Bank report was inter-
esting in that it disclosed material inn
provement in the reserve position OF
Western institutions. The connection
which this has with the liquidation of
frozen credit may prove of considerable
Importance later The statement indi-
Gated that farmer borrowers were using
the proceeds Of new crop wheat sales
to retire old loans. a process which. in
stead Of causing a growth Of loans and
an expansion OF currency that Is ex-
pected at this season. is bringing down
the general loan account. 1t remains to
be seen. Of course, whether this ten
deucy con be continued during the au-
tumn months. but last weeks showing
was, nevertheless, satisfactory to those
who believe that before many weeks
The time money market was somewhat
relaxed yesterday, as compared with the
stffer tone noted from Monday t
Thursday. some large lenders quoting
5& and 6 per cent. Most loans were
made at 8 per cent
Exports Of wheat and flour equivalent
\ from the United States and Canada dur.
ing the week ended Aug. IL were about
Fl per cent. less than in the preceding
week. according to Brddstreefs records
but the total Of S643,525 bushels wa.
Wheat futures declined 2, TO ia cent:
bushel at Chicago. The cotton marke
showed only slight changes for the day.