The New York herald., 1921-07-13
FINANCIAL NEWS
AND COMMENT
Tobaccos and Oils Show Most
Strength in Dull Stock
Market.

The stock market acted yesterday as
though nearly all its buying was for
I covering short contracts. The traders
short of stocks, however, were not moved
to any great activity and the session
was one OF the years dullest. Tobacco
issues and certain oils stood In the
foreground. displaying strength most Of
the time. Steel shares moved hardly
at al and there was little interest in
the railroad department The fact that
several stocks lately inducted into the
speculative class continued to lend at a
premium indicated that offerings We're
| light, but business as a whole was so
quiet that .the days operations dis
closed no new factors OF Importance at
work. An early upturn of Mexican Pc
troleum, General Asphalt and one or
two other oil stocks was evidently the
result of President Harding's announced
position against a tariff on petroleum
imports. The movement was not fol-
lowed up.
The stiffening of call money to 6H
per cent the highest quotation since
June 9, was interesting in connection
with Treasury transactions to be put
through on Friday. The local banks
have been informed that 100000 OF
Treasury deposits will be withdrawn
that day, and at tho same time an issue
of approximately s132.ooo,ooo of GER
ti1cates fall due. of which about $780,
100000 are lodged In the New York
Reserve district The feature of that
payment lies In the fact that so far
there has been no proposal for a new
issue Of Treasury certificates to take up
all or part of the maturing series, which
suggests that the Treasury is well able
to fIquidate the notes from current bal
ances. Heretofore announcement of a
new issue has been made at least
week before due date, thus preparing
banks and other buyers for the Offering
The extensive draft on Government
balances In connection with the GER
thcate maturity explains in part why
call money has risen In the last three
days from to 6 u per cent. The under
lying position OF funds for collateral
loans continues fr&rly easy, nevertheless,
bidders for time money being unwilling
to go higher than 6 per cent. The firm
tone OF bonds shows also that investors
and bond dealers feel an undercurrent
OF monetary case which may be made
uneven in the next few weeks by de-
The wheat harvest. because of unusually
warm weather, is coming along more
rapidly than 1t has In normal seasons.
necessitating an early demand upon the
banks. But the probability that market
ing will be pressed more vigorously than
ii was last year bespeaks a return OF
funds to the banks in greater volume
than usual before autumn.
In connection with the wheat market.
yesterdays price movement Indicated
that the trade was paying attention 20
cabed reports of damage to crops in
European countries by drought At the
same time discussion OF i'll effects OF
dry weather in our Northwest caused
considerable short covering, the product
OF speculation for the rise and the re-
tirement OF commitments on the short
side being gains of 5M to 6h cents a
bushel in wheat futures in Chicago.
Cotton quotations were inclined to fall
lower following the trend~of prices in
Liverpool.
Foreign exchanges turned about ster-
ling advancing 21s cents TO the pound.
reaching s3.65A in the afternoon. There
were evidences of speculative purchases
OF marks. causing a rise of Z points to
1876 cents each. and most other Con-
tinental rates gained ground. The inter-
play OF speculative forces obscure the
genuine economic factors in the ex-
changes. and therefore 1t is difficult to
trace the effect of influences comprised
in the movement OF goods. But such n
shrinkage of imports as occurred In
June, the total being $1eS, 900. 900
against 1854, 100000 in April. denotes
low exchanges until the outside world
again can pay more debts here in goods.