The New York herald., 1921-03-09
FINANCIAL NEWS
AND COMMENT
Occupation Of German Cities
Causes Irregular Prices
Sterling Off 3 IL.

For those who expected that the occu-
patton OF German cities by allied forces
would be the signal for extensive selling
pressure in the markets yesterdays
business brought surprise. Sterling
exchange suffered q marked relapse and
weakness was evident in francs and
some other Continental rates: but 1t was
a question whether most OF the disposi-
ton to sell came more from sources of
pure speculation and less from quarters
where genuine apprehension over the in
Fiction or penalties upon Germany was
felt. 1t was noticeable that the greater
part OF sterlines gross decline of Az
cents occurred after the end OF business
hours in London. Cabled quotations in
dicated that the exchanges were nrmer
in London than IN New York Steriing's
last quotation OF sass showed a net de-
cline OF 9la cents. Wheat declined
slightly and cotton was steady.
The stock market took the attitude at
first that the outlook abroad was
sufficiently serious to impei lower quota
tions: later the impression gained
ground, assisted by comment from the
European centres, that the advance Of
the soldiers would tend to awaken
Germany 70 her actual position and thus
force an early readjustrnent of her
Governments attitude. The product was
an irregular backward and forward
tendency, in which sugar, copper and
some railroad issues lost from three
quarters of point TO about l "a points
Had it not been for the fact that atten-
ton was centred SO completely on the
reparations situation. the stock market
would have been considered just like the
sessions OF last week. The same pro-
fessional hands controlled dealings: the
same shares were depressed, with the
exception. possibly, of half dozen rail-
road stocks, although Atchison, Great
Northern preferred, Lehigh Valley, New
York Central and Southern Pacific have
been moved about at times in the last
six weeks in rather lively fashion.
In connection with railroad stocks. the
wage problem and the monthly record
Of earnings seem likely to come in for
more and more attention from now on.
The market experienced periods of un-
settlement when November and Decem-
ber statements OF railroad income ap-
peared and it looked as though January
reports. made public yesterday, had
more than a little to do with the re-
action of Atchison. Great Northern pre-
ferred and other old line issues. The
Great Northern announced a deficit OF
S1,555,o for the month. compared with
a. profit from operations of practically
an equal amount in January of last
year. The Union Pacific, usually able
to show excellent comparative results.
saw a January gross return of $13.-
270,000 cut down to a deficit OF s124,-
351. In the same month OF 1920 a sur
plus OF more than S6.40o.o0o was earned.
Of which slightly more than ss,00o,0oo
represented back pay for carrying mail
in 1913 and 1919. Even allowing for
this extra sum. the net income In the
first month of 1920 so far overshadowed
the result of January this year as to
make a decidedly poor impression on
followers OF the rail shares.
Some light on the situation OF world
trade came from the February report
Of British exports and imports. Ex-
ports or Cos, ,22o, 900 were f24,5oo, 900 less
than In January and less than half as
large as they were in the record month
OF July last year. Imports of f96.970.0o0
contrasted with f170.5oo,o00 in Feb
ruary. 1920. and the excess Of imports
was f2O,75o,00o. after allowing for
fs,Ooo.oOO Of reexports. British trade
has been cut nearly In half in the last
year IN respect to values. with lesser
change, OF course. in quantities, due to