The New York herald., 1921-06-29
FINANCIAL NEWS
AND COMMENT
Active Stocks Finish a Point
to 2 1-2 Points Up in Final
Rally Led by Steel.

A final rally which left active stocks
point to 21a points higher than they
were on Monday marked yesterday the
retreat OF bearish spectators from
rather Intellectual efforts to get prices
down during the earlier hours of the
session. Steel shares led the upturn,
United States Steel common registering
net advance of rs points, but there
was a broader interest in railroad stocks
than had been seen in fortnight on the
sues rebounded from depressed posi-
tions. Although the market continued
dull and disclosed little besides profess
sional trading transactions. a favorable
impression was obtained from the re-
silent tone of quotations. especially in
the face Of slightly sitter trend Of
call money. The rate moved up from
5 per cent. to SIS per cent. Large
Government Withdrawals Of deposits
this week evidently Joined with prepara-
tions OF corporations for July l pay
ments to restrict temporarily the sup
ply of funds for temporary collateral
loans. Time funds. however, were
slightly easier, although in light de-
mand, and the impression obtains that
money will be plenty after the first
week Of July.
Not all the days favorable news
found reflection In security prices, but
it was noticeable that partisans of the
downward side Of prices were cautious
and lacking in aggression of the sort
evident In the markets of fortnight
ago. The settlement of the British coal
strike presumably had been considered
so well assured last week that it fell
rather fat in the stock market. A
fractional advance Of sterling exchange
was less than might have been expected,
but IL needs be remembered that the
outflow OF wheat and cotton in their
seasonal movement Is now increasing
the supply OF exchange, with conse-
quent pressure on rates. Cotton. how
ever, went forward, aided by the out
lcok Tor improved fuel conditions in
England and the return of cotton mill
operatives TO work.
Railroad shares evidently were helped
by the movement in Administration
quarters in Washington to fund for ten
years large advances made to the roads
by the Government during the period Of
Federal control. and also by fresh at
tention called to the funds which the
Treasury has available for the carriers
In partial payment Of claims But the
market Is paying more attention to the
outlook for railroad profits under a
lower scale of wage outlay, and If esti-
mates of savings to be made by the
Railroad Labor Boards mandate, effec-
tive July /. are anywhere near the
facts, there Is reason to find satisfac-
tion in railway prospects. 1t was prob
ably contemplation of economies that
had more to do with the advance of
railroad shares than anything else.
Speculative interest was drawn to the
steel share group indirectly by the rail-
road news OF the day, for there Is lit
tie question in the trade but that bet
terment OF the rail cash and earnings
position would entail an expansion of
steel purchases in the way Of rails and
structural material. Reading gained 2
points, and gains of more than a point
were recorded by Baltimore and Ohio,
Chesapeake and Ohio. Rock Island. Nor
folk and Western. and Union Pacific In
the active list.
Another cut of Pennsylvania crude
petroleum of 25 cents barrel indicated
that production is heavier than refiners
can handle at this time. A fall Of TN
and 6% cents a bushel in wheat futures
in Chicago reflected the collision of
early marketing operations with a
rather light demand. Other grains
tended toward lower prices.