Evening star., 1921-07-11
MARKET IS STEADY,
TRADING IS SMALL
Price Changes, However,
Are More Than Ordina-
riIy Confused.
BY STUART p. WEST.

stock market price changes were
moro than ordinarily confused and
business. still wholly in the hands
Of the professionals. most Of the time
was small. The chief incident of the
day occurred outside Of the security
dealings altogether. 1t was another
violent fall in sterling exchange.
which dragged with it all the princi-
pal continental rates.
Demand sterling was down more
than cents from last weeks close
and more than 10 cents from where
to the level of early January. undo
ing, in other words, the entire i'm
provement during the first five
months of 1921. brought about by
the huge gold transfer and the re-
duction in British imports from the
United States.
Break in Exchange Features.
The present break in the exchanges.
scarcely less violent than that Of
month ago. is due to much the same
cause-that is. England is accumu-
lating dollar credit. and the conse-
is depressing all the other currencies.
But the reason for this accumulation
of American exchange is by no means
as clear as 1t was in the early part
Oh linen II was KNOWN CndC
Germany had to make remittance of
the first installment of the indemnity
in American money. and this was the
source of the buying.
But the present operations are sur
rounded with more secrecy. 1t may
be that dollar credits are being
bought up for account OF the repara
tions commission. or it may be that
the buying is being done by agents
of the British government. which has
nmarad radeen the ropoainAar nf
the $150.000.00O 51a per cent notes due
November I. and may for this reason
wish to increase it's balance ip this
country. In either event. this ex-
at bad time for the market. because
1t is the time when exporters OF
wheat and cotton are offering their
sterling drafts against future de-
liveries.
New Low for German Marks.
Coincidently with sterling. German
marks made a new low for the year,
getting down well below lao. Here.
however. no special operations were
under way. The decline was entirely
a reflection Of the continued heavy
expansion in paper currency, more
than ever a feature since the begin
ming Of the reparations payments.
Inasmuch as the low value of the
mark is the main weapon in the
hands Of the German business. In its
competition with other nations, the
thought occurs that the German gov
tional credit should keep on going
downhill, IL this is helping the Ger
man merchants to regain high place
in the international trade.
Turn in Sugar.
There were two reasons for the
turn for the better in American
Sugar. One was the announcement
49, 4~11 ~
example of other large refiners and
advanced the price of its product.
The other. and more influential. was
the urgent demand for the stock
which appeared in the loan crowd.
1t was evident that stock loans had
supply for borrowing purposes had
been greatly reduced. This resulted
in a quarter per cent premium fixed
at the opening and later increased
to half per cent The meaning OF
:of Sugar had to pay $50 hundred
shares for tho use Of the stock for .
Atlantic Gulf was another stock in
which comparative scarcity for bor-
rowing purposes suddenly appeared.
Sears Roebuck had the opposite ex-
perience from American Sugar ana
Atlantic Gulf. There was premium
exacted on 1t, too. but the stock
went down. novertneie09, 10 q now low
for the year. No fresh reason de-
veloped for this decline.
Cau Money Turnover.
II 10 estimated that the daily call
money turnover in the New York
market 10 now only $10.000.000 to
$15,0o0,0 900, against Q normal of forty
TO dfty million dollars. The high level
OF wall street borrowings ran to
S1,7Bo, 100000 in July. 1913. but the
belief Ia that It runs little beyond $780,
100000. It 10 figured in interpret
ing this decrease that the improve
meut in the stock exchange clearing
maohinery has tended to reduce the
amount Of money necessary to trans
act a days business.
'The textile industries" said q mar
ket expert today. discussing a revival
In trade, ''sesn to be the only ones
which have consistently held their i'm
provement in business. Even in these,
while operations have been in many
cases well up toward capacity. the
margin Of profit IL believed to have
been quite small. The steel industry
is operating at less than q quarter
Of capacity. Cooper producers are prac-
ticAlly all shut down. It Is quite prob
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