New-York tribune., 1921-01-30
Exchange Rate
Rise Features
Day in Market
Settlement of Reparations
Problem Gives Foreign
Securities a Firm Tone;
Quiet Trade in Stocks

By far the most important develop
ment bearing upon the nancial mar
kets yesterday came in the news from
Paris announcing the approval by the
Allied Supreme Council of the plan for
German Preparations formulated late
Friday.
The news came as surprise to the
financial community, which had gone
home the day before in the belief that
settlement was impossible owing to
the difference between the demands of
the French and the difference between
the demands of the British. 1t re-
mains now for the Germans to con-
slider the terms, and while it is an
open question whether they will accept
IN detail the plan presented to them,
the important thing, from the viewpoint
OF the financial world, is that at last
the problem which has been serious
obstacle to the rehabilitation of Europe
since the peace treaty was signed, is in
fair way toward solution and at an
early date.
Inc foreign exchange market, which
has been advancing since the beginning
OF the year, made the greatest response
to the Paris developments. French ex-
change rose in striking fashion, the
parls rate soaring to 7.30 cents to the
franc for checks, compared with close
OF 6.86 cents the day before. This was
a net advance of nearly half a cent to
the franc, and was close to the high
rate established last week before diff
ferences developed at the Paris con-
ference, which threatened to break up
the council The rate on Berlin also
improved slightly, but not in such pro-
nounced fashion hs francs. Mark
checks, which closed at 1.7O1s cents,
touched LII. Sterling rates were high
er at S3.66A for London sight drafts,
gam OF l cents to the pound.
In the stock market trading proceed
ed quietly, but stocks generally dis
played trmness. despite q good deal OF
irregularity The volume of business
was small, even for Saturday Session session
Special issues displayed pronounced
strength in number O Instances. no.
tably in the case of Pressed Steel Car
National Cloak and Suit, Associated
on, Chicago Pneumatic Tool, Gulf
States Steel, American Sumatra To-
bacco, American Linseed and Jewel Tea
preferred. The standard issues. with
the exception of Studebaker common
which was a strong feature on active
dealings, showed no important changes
Steel common remained unchanged at
e31s. Among the rails Reading com
mon yielded more than a point.
Dut sugnC changes occurred in the
opsltion of the Federal Reserve Bank
of New York last week, as revealed in
the statement as of the close of busi-
ness on Friday. The ratio of total re-
serves to deposit and Federal reserve
note liabilities combined stood at 3S g
per cent at the close of the week, com
pared with 38.1 per cent the week be-
tore. The ratio of reserves to net de-
posits, after deducting 40 per cent gold
reserves against Federal Reserve notes
in circulation, was 1862 per cent, com.
pared with 1851 per cent the preceding
week. The local bank gained S25,OOO,,
600 in gold on operations with othe,
reserve banks, but it's holdings of golc
and gold certificates were reduced from
Sl108 1892 900 to $96,353 ,401 Gold with
| the Federal Reserve agent decreased
S15,000,000. Member bank rediscounts
against commercial paper increased
from s46s, 591 900 to s4e4,s12. .760 during
the week. Those against government
war paper increased from S4O9, 90 ,O0(
to s414,012,677. The New York Clear
ing House banks reported contraction
of S62, ,840,0 900 in loans and discounts
while net demand deposits dropped
$8o,11S,000. Surplus reserves decreased
$685., 400 to S8875,15O.