The New York herald., 1921-05-18
FINANCIAL NEWS
AND COMMENT
Public Utility Issues Promi-
nent in Irregular Market
Exchanges Are Higher.

SHOCKS We're Ccait III yesterday mostly
in accordance with traders conception
OF the effect that current news and
pending developments were likely to
have on particular issues in the next
few days. Thus public utilities were
bid upward rather rapidly at times, with
feathers and coppers. While they were
rising, stocks of some independent steel
companies, notably Republic Iron and
Steel. were forced down l point to more
than 2 points. and a ragged price front
appeared IN the railroad department,
Great Northern preferred and Northern
Pacific disclosing considerable weak
ness. As the market was purely trad
ing affair in which long range calcu-
lations OF price tendencies had little
part. it was obvious that sentiment was
made favorable to gas and street rail-
way stocks by the Supreme Courts re-
fusal to interfere with the functions of
the new Public Service Commission. A
slight hrming UP OF the price of copper
metal. bringing a quotation Of 1874 cents
a pound, was sufficient excuse for pur-
chases of copper shares, and likewise
news of improvements in the leather
market helped stocks of that class and
doubt about certain steel company divl.
dends in the present quarter induced
further selling Of steel issues.
1t is indicated in the foregoing de-
scripton OF business that deductions of
economic importance were hardly to be
drawn from the course of stocks. In
bonds a slightly heavier tone than was
noticeable on Monday apparently showed
that the heavy output of new issues was
tending to depress prices of many ac-
tive bonds. The establishment OF new
low record quotation for Liberty 31as
may or may not have been suggestive
of an altered position of that bond in
the light OF forthcoming changes of in
come tax provisions. \ reasonable ex-
PLANTATION of the recent decline from
around 80 to SS is the process OF re-
alignment of values now being caused
by the expansion OF municipal and other
bonds holding strong attraction for in
vestors in the way of exemption from
taxation. Among them may be men
toned the $40,000,000 of Land Bank
S41. 100000 New York State issue to be
sold next month. The complexion OF
the bond market is changing practically
every day under the influence of wide
variety OF new domestic. and foreign
offerings. and the prospect of a con-
tinued force behind money rates is pre-
sented in the plans of banking groups
to serve out investments on broad
scale. Call money lent yesterday at
per cent An unusually heavy volume
of bank clearings was the aftermath of
the big transactions. Government and
corporate, on Monday.
The foreign exchange market ought to
supply subject for interesting study
! from now until the end OF the month.
Germany has to turn over TO the Allies
| 1000, 900, ,0cO gold marks of cash and
bills By June !, and local bankers al
ready see the task of transferring large
sums from Continental centres to Lon
don raris and even New York outlined
in exchange movements. The weakness
of Dutch rates in New York and London
during the last two days Is believed to
represent tho conversion of German bal
ances in Amsterdam into sterling and
dollars. Deposits against reparation
payments may be made in reserve
banks. Sterling and francs were firm.
the former around S.o9h, and marks,
despite reports of heavy selling here,
were only moderately reactionary at
times, lowering around Ira cents each
during most Of the day.
Neither in exchange nor stocks was
their any appreciable attention paid to
the Silesian dispute, except for an in
crease or confidence that the differences
Of England and France would be settled
shortly. The markets being concerned
chiefly with the monetary outlook OF
the next few months and with domestic
business developments the financial COM
munity was enco ragged by the optimistic
review of conditions presented by the
Secretary OF the Treasury, who looks for
q gradual growth Of industrial activity.
Cotton was firm. Grain prices changed
vnry iiftlc