The New York herald., 1921-04-22
FINANCIAL NEWS
AND COMMENT
Sharp Gain by Studebaker and
Other Specialties-Market
Otherwise Uneven.

Wnile dealings In the stock market
were as highly professional yesterday as
at any time In the last six weeks, the
character OF business disclosed some
important changes. Instead OF the chief
points of interest being In speculative
Efforts to depress prices. the sessions
outstanding feature was the painful
strivings of earlier short sellers to get
out OF tight place. Urgent covering
purchases carried Studebalser up z
points. and sharp bulges occurred In one
or two other motor issues and among
several specialties. At the same time
what looked like speculative ventures
for the rise brought additional advances
in petroleum shares, continuing the up
turn which began early in the week.
The market, however, continued to
show that the uneven trend of industry
was still finding direct reflection In
securities, and the money situation was
colored by the impressions gathered in
the last few months The call loan rate
on the New York Stock Exchange failed
to get below 61a per cent.--it closed at
per cent. on Tuesday and Wednesday,
and reports Of loans at 5 per cent out
of funds. The relation between industry
and stocks was disclosed In a heavy
tone of certain steel issues, while sugar
stocks were unsteady and there were
IT, rhov cf
few manufacturing concerns whose re-
adjustments to the commodities price
movement have not been completed.
There was nothing surprising in these
fluctuations to lower levels. for surveys
of business in many fields indicate that
domestic consumption of goods has not
revived sufficiently to take up the slack
made by shrunken sales for export.
Motor stocks have the support of known
expansion Of manufacturing since the
middle of March.
The resiliency which a few groups of
stocks have displayed this week, under
moderate purchases. raises again the oft
repeated query about the underlying
stratum OF general business. The state
ment that the corner has been turned"
can easily be drawn out by a little i'm
provement Of prices, but more facts are
needed than have come to light so far
this year TO prove that the complete
basis for expanding industry has been
established. 1t is evident in trade re-
- xyt1, ~
manufacturing and distribution In some
lines since March /, and the firm posi-
ton of crude oil prices indicates at least
that the influence of seasonal consump-
copper markets certainly are not yet dis
playing a material enlargement Of buy
ing. and the situation of bank loans In
agricultural regions, as well as some
siderable deflation remains to be COM
pleted before the effect of last years
sudden slump Of prices Is entirely re-
converted into stable foundation for a
new period of prosperity. The time may
be near or 1t may be far away for a
genuine easement of money In New
York: the fluctuations Of call loans be-
tween and 81 per cent. forecast moth
ing at all and suggest merely that a
dip below per cent. for several days
is likely, as on several other occasions,
to drive deposits away from New York
to more profitable centres.
German exchange turned weak yes
terday. possibly as the result OF signs
that the Allies are not to be interfered
with by tho United States In whatever
measures they take to force payment of
reparations. Sterling was steady and
most other European rates gained lit
tie ground. The Bank Of Englands dis
count rate was continued at per cent,
the weekly statement disclosing no rea-
son why it should be lowered. The
banks reserve position was improved as
loans to other banks declined. but Gov
ernment borrowings increased again.
Wheat receded in early dealings. with
a recovery later and net gains Of cent
and more a bushel. Cotton lost little
ground. =