New-York tribune., 1921-04-15
Prices Lower
As Result of
Strike Outlook
Sterling Higher, However; ;
Drop in Boston Dis
count Rate Is Made
After the Market Closes


In the domestic financial markets
yesterday the apprehensiveness of
traders over the impending strike
in Great Britain to-day was ex.
pressed in lower quotations.. Despite
marked Irregularities of trend, average
prices of industrial and railroad stocks
declined and commodity quotations
shrank.
Strangely enough, no evidence of
fear was revealed in the fluctuations
of sterling exchange, which after its
weakness on previous days recovered
a dent to the pound and impaired
strength to the Continental exchanges.
This display of steadiness in this highly
sensitized market was interpreted by
some as a reassuring factor. The ac-
tion Of sterling exchange evidently re-
fected an attitude in financial London
which was cabled over to one of the
international banking houses. "There
is still a chance that railwaymen and
transport workers leaders may coun-
sci moderation" according to the mes
sage, which added that if strike was
executed it would probably be "half
hearted"
However, professional speculators in
stocks, who dominated the market, used
the disconcerting probabilities in Great
Britain to facilitate their drives against
securities. Although weakness was
fairly general, the railroad stocks were
most heavily sold and the averages of
twenty railroad stocks and ten rail-
road bonds slumped again to the lowest
level Of the year. The sugars and the
steels were the special objectives
among the industrials.
Call loans were made at per cent
throughout the day. The most signifi-
cant development Of the day became
known after the market closed, and
related to credit The Federal Reserve
Bank of Boston announced a reduction
IN its discount rate on commercial
paper from to per cent. Since No
vember, 1919, when the Federal Re-
Serve Board and the twelve regional
banks began their campaign against
overexpansion, this is the first time
that a bank has shown a sign of re-
taxation.
The action of the Boston bank is
doubly significant because it was done
with the approval of the control board
of strategy, the Federal Reserve Board,
which sits at Washington. AS matter
of routine. all changes in discount
rates must receive the sanction Of the
| board. 1t is not surprising that Boston
should take the lead in the reaction
from restrictive credit measures, be-
cause the New England district was
among the most to dehate and TO suf-
fer depression. Recently an improve
ment in the textile and shoe trades has
been reported, and this betterment has
| evidently made it possible for borrow
ers to greater extent to pay off
hitherto frozen. loans.
Many expected the Reserve officials
to wait until the Bank Of England cut
| its discount rate from per cent. The
bank took no action yesterday. The
directors of the Boston institution
were not looking across the seas for
leadership, but kept scrutinizing the
state Of the banks reserves. Boston's
action presages general cut in dis
count rates, but not necessarily at
once. The action will unquestionably
have stimulating effect on business
men in the Boston region and else
where. 1t comes as q message of cheer
from bankers to men Of commerce. 1t
does not, however, by stroke of the
pen solve pressing problems of re-
adjustment.