The New York herald., 1921-08-20
FINANCIAL NEWS
AND COMMENT
Stock Prices Drop-Industrials
at New LOws-U. s. Steel
Corp. Cuts Wages.

Stocks slipped back again yesterday
into the rut from which they had climbed
on Thursday. a lack OF buying power
being in evidence from the start of busi-
ness. Several industrial issues reached
downward to new low records for the
year before the close, and. with the ex-
ception OF railroad stocks, the days
movement was generally one of slow
reaction. The strong weekly statement
OF the Reserve banks and its reflection
in an easy position of call money-the
rate was 51a per cent. were entirely
ignored as market factor. In bonds.
however. the prospects of further re-
Taxation of money had some influence in
broadening the demand, although price
alterations were not uniformly upward.
Liberty issues, in fact were unsteady
all the way along, which may or may
not have had connection with the desire
of buyers of those bonds to know exactly
what the forthcoming taxation statute
would contain when the Congress gets
through with it, On a straight invest
ment basis Liberty bonds, yielding re-
turns Of Az to slightly more than 51a
per cent, stand in sharp competition as
far as the average investor Is concerned
with many foreign Government and well
secured domestic industrial issues re-
turning u to 71s per cent. II current
supertaxes are retained under the new
law 1t is possible that the home Govern
ment bonds will feel some stimulus from
purchases before the year is much fur
ther advanced.
Professional selling converged In
American Linseed, Baldwin Locomotive.
International Nickel. United Retail
Stores. United States Rubber and West
inghouse. The diversity Of that list in
dicates that the bears had slight fear
OF concerted support anywhere and, en-
boldened by their success in the indus
trials. they picked out certain rails for
short sales in the last hour bringing
about several fractional net declines.
There were more constructive influences
at work In the railroad field than In the
case during all of the year. The first
report Of July operating results, the
one made by the Kansas City Southern
and showing fall of about 23 per cent.
In operating expenses, compared with
that of July. 1920. and five times as
much net revenue showed the effect OF
wage cuts and of economies in manage
ment and these were expected to be
emphasized as other statements appear.
The industrial outlook, on the other
hand. was seen as containing improve
nent In certain lines and uncertainties
in others.
The days most significant Industrial
DEVELOPMENT was the United States Steel
Corporations announcement of cut OF
common labor from 81 cents TO so cents
an hour. The corporation has been the
last 70 liauidate labor to that extent,
other producers having established the
lower basis in recent weeks. and the
industry seems now to be in position
10 show moderate profits from certain
products the demand for which has
picked up in the last month. But the
fact remains that operations as a whole
throughout the country are still on
| level too low TO warrant the belief that
business is in process Of broad expan-
sion. Improvement in one line and then
! in another has been the procedure FOL
lowed in recoveries from other periods
of denression and II is likely that such
viii be the manner Of readjustment this
i time.
Foreign exchanges receded. Scandi-
navian quotations being an exception
with . tone Of firmness. Grain and cot
ton quotations were altered very little IN
5rii rnarketg