The New York herald., 1921-09-17
FINANCIAL NEWS
AND COMMENT
Bonds Lead Trading in Invest
ment Markets-Steel Gets
to New High.

Dealings in bonds stood more prom
terday than cid stocks. pronounced
firmness OF Liberty issues and many
corporation bonds being significant OF
an improving demand for investments
and indicating at the same time the
trend OF money rates. Stocks were
traded in in rather leisurely fashion.
The price front displayed considerable
strength of steel shares all the way
along. United States Steel common
reaching upward to a new high point on
the current swing-and the majority OF
industrial and railroad stocks rising at
least fractionally higher than they did
on Thursday The market. however.
disclosed signs. that the short sellers
had become emboldened by this weeks
irregular trend, and net gains OF more
active shares were made in the face of
considerable resistance. That there
should be a slowing down of business in
stocks and cotton was inherent in the
extravagant movements of the latter
and in the accompanying strength of
the former during last week. A pow
erful rise nearly always. when extended
over week or ten days, brings in its
wake period OF readjustment and cau-
tious transactions. Cotton futures re-
ceded about half cent pound.
The fact that a s25.0o0.00O issue OF
Canadian National Railway fifteen year
bonds were sold quickly yesterday on
6la per cent. basis is worthy OF atten-
tion. Two months ago an issue OF that
size and maturity would have COM
manded probably SIS per cent. Yes
terday's sale suggests that the time Is
rapidly drawing near when sound rail-
road and the best grade industrial long
term paper can be disposed of on a
WELD basis not much higher than 6 per
cent. and news that the United States
Treasury is confident Of selling to
bankers additional blocks Of the car
trust certificates held by the United
States Railroad Administration indi-
Gates expectation at the centre Of Gov
ernment finance that money and credit
cost Is reaching downward to a normal
level Seasonal developments support
that view. The country is passing from
the crop harvesting to the crop market
ing stage. and inasmuch as the harvest
ing period brought no strain-in fact,
Federal Reserve loans have declined all
the way along-the outlook is for an
even more rapid contraction OF loans in
the immediate future as agricultural
obligations to the banks are paid off.
These fundamentals in the light OF
past experience. speak in encouraging
fashion of investment market prospects.
Whether or not, they contain factors
to be determined BY the actual course
OF business and trade. Relative cheap
and easy money Is satisfactory for or
ganlzed efforts to put stocks up, but
have an underplnning OF continued
favorable business prospects. Yester-
days upbidding of steel shares was
colored by speculative comment on
price advances of certain products. such
as wire and sheets. which, in them
selves. reflected a reduction of supplies
in consumers hands without outlining
a substantial improvement for the near
future in the steel industry as a whole.
Expert discussion of steel conditions
forecasts the arrival OF late winter
months before mill operations will have
recovered broadly.
Call money was lent at 6 and 4ia per
cent, the latter being the closing quo
tAtion. Although income tax payments
for the present quarter are running
much lower than a year ago, the pas
sage OF checks through the mail prob
ably Is having some bearing on bank
deposits. AS the shifting of these funds
ceases, the result will be to increase
deposits In New York.
German exchange enjoyed something 6
OF rally. the rate going from go to
81 cents, suggesting that transfers OF
funds from Berlin to outside centers
had abated. Sterling was unchanged.
EnpEICN EYruANCE