The New York herald., 1921-06-09
FINANCIAL NEWS
AND COMMENT
Trend of Stock Prices Highly
Irregular-Foreign Ex-
changes Fall Back.

The stock market returned yesterday
TO the consideration of matters which
obscured the industrial and financial
outlook. A highly irregular trend Of
prices reflected few of the forces which
had brought about the quick recovery
Of Tuesday. But while there were re-
newed attacks upon steel and oil issues,
which brought declines among them OF
point to more than points, shrink
age Of business to about half the turn
over of the preceding session indicated
that short sellers were more cautious
than they had been preceding the Tues
day rally. The railroad shares were
under no especial pressure: in fact,
fairly sharp advances were scored by
Norfolk and Western, Union Pacific.
Louisville and Nashville and several
others. A reason for the lack OF resil-
iency OF Crucible Steel, Republic Iron
and Steel and one or two other inde-
pendent company stocks. following their
fall in the first hour of trading, lay In
the weekly report Of steel trade condi-
tons The output of pig iron in May,
amounting to 1,221.221 tons. according
to the Iron Age, was the smallest for
any thirty-one day month since July.
1908, record that Is as complete as
anything could be in recounting the un-
usual stagnation of the industry. The
trade is paying attention to the ten
dency of certain prices to work lower,
and operations at the rate of 80 per
cent. of capacity show that mill activi-
ties are not yet increasing over the poor
showing Of last month.
Because of the unfavorable foreign
trade situation, the erratic movements
Of the exchanges are daily becoming OF
greater concern to bankers and mer-
chants. It is realized that the German
rcparations constitute a transaction
considered In the aggregate, which must
entail great fluctuations in the rates OF
foreign moneys so long as cash and bank
credits are to figure as the chief media
Of payment AS the plans OF the Ger
man Government and Reparations Com
mission are not known in detail, all thai
those who participate in the exchange
market can do is to await development'
| from day to day; but 1t stands to rea'
son that inability of exporters and I'M
porters and the interests which finance
them to make any reasonably true cal
| culations of future movements OF ster-
ling. francs and other European rates
will tend to make more difficult thar
ever the movement of goods between
countries The advance of "a cents tt
the pound sterling on Tuesday was fol
lowed yesterday by rapid fall or
cents. French, Belgian and Italian quo
tations also drawing back. The effec'
| Of such abnormal and disconcertinf
movements as these certainly Is not
going unnoticed by the financial au
thorities who have charge OF the repara
tions. and the suggestion is permissibl
that ways and means will be found t
prevent Ions continued disturbances o
the exchanges while Germany Is payini
off the claims against her.
Liberty bonds appeared to feel in ad'
vance the Treasury's new programme
for great offering of one and three
year notes, the latter at a higher rate
of interest than had been expected. Sew
eral of the Government issues were soft
Railroad and other corporation bonds
were steady. an easier position Of de-
mand money possibly helping the mar
ket. Call loans were arranged at 6ha
per cent. in the afternoon, in contrast to
a renewal rate of per cent. and funds
were obtainable In the outside market
at per cent.
The Government report on grain crops
indicated a lower outturn OF winter
wheat than had bcen expected. the esti-
mate of SIS 1000. 900 bushels as of June
being more than 2o,0oo,o00 bushels
lower than the forecast a month before.
But the outlook for the entire wheat
yield stands 100000 bushels in ex-
cess OF the actual crop Of last year.
The July option advanced cents a
bushel in Chicago. Cotton was slightly
higher.