The New York herald., 1921-10-29
NEWS
AND COMMENT
Action Of Stocks Reflects Re-
lief Over Rail Situation
Oils Lead Rise.

Tlse security markets yesterday fur
nishe1 ample evidence of. the relief
which the financial community felt over
the resembling of the railroad strike or
der Heavy purchases of all classes of
stocks in the first honr pictured the rout
OF the short interest in industrial as
well as In rail shares, and the subse-
quent strength of the former indicated
that the clearing of clouds from the labor
horizon gave fresh inpetus to the in
fluences previously working for the ad-
vance. The fact that railroad issues
first bulge was inherent In conditions
surrounding them. Although the threat
of costly contest with the unions was
removed by Thursdays action in Chi
cago, the actual position Of the carriers
in regard to operating costs and freight
rates was exactly what it was before the
strike was called. AS the matter seems
to stand now, the roads will perforce
have to wait for considerable time to
elapse before any fresh move toward
lower wages will be passed on by the
United States Railroad Labor Board.
In the meantime, public and political
pressure for reduced freight rates is
certain to become more and more insist
ent-
Railroad stocks, nevertheless, gave an
excellent account Of themselves yester-
day until the close. Gains OF a point or
more were scored by Atchison, Chesa-
peake and Ohio. Northern Pacific, Union
Pacific and others. A supporting factor
in this weeks rail market is the showing
of operating incomes reported by the
prominent roads for September, the i'm
preston that improvement over results
In August and in September last year
was satisfactory in the main being
strengthened as additional statements
appear. Again the oil stocks were the
real backbone of the days rise and
steel company shares had more power be-
hind them than they had had al any other
time since the upward surge of the sec
ond half of August. United States Steel,
nt sig, established new high point
for the present movement. Enlarged
purchases Of oil. steel. railroad equip
ment and copper stocks worked to make
the active list one of the broadest Of the
autumn period and the turnover, close
to the million share mark, was the big
gest since June 81 when prices were
tending downward.
The bond market reflected much Of
the same relief from tension as did
stocks. Railroad bonds were active and
gained large fractions. Quite likely the
removal Of the strike possibility tended
to bring in orders which had been held
back by cautious investors. who other
wise would have sought earlier to take
advantage Of the tendency Of money
rates. The large subscriptions for six
months United States Treasury certifi-
Gates of indebtedness. bearing only 4A
per cent. interest, supply by themselves
adequate evidence of the public estima-
tIon of the easing money situation. The
call loan rate yesterday went from. to
8 per cent.
The feature of the foreign exchanges
was sharp Improvement in the rate on
Montreal. The discount on Canadian
funds at New York has been falling
gradually ever since the grain movement
was speeded up month ago. Sterling
left off without any change for the day
and marks rallied slightly. Through
error It was reported in this column
yesterday that the Reichsbank's state
ment for the week ended on October 2S
had showed a decline in circulation. The
aggregate Of ss,144,195,000 marks actu-
ally was 436. 900 marks larger than
it was in the preceding week. but that
growth was sufficiently small in con-
trast with the billions OF marks expan-
sion in previous weeks to show that de-
mands for new currency to meet repara-
tions needs and other purposes had re-
ceded sharply.
Wheat moved forward briskly, but
cotton Jagged and left off slightly lower
than Il did on Thursday.