Evening star., 1921-02-17
STOCKS SDR|F TING
TO HIGHER LEVELS
BY STUART P. WEST.

NEW YORK, February II Especially
Signs Of relaxation in the time
money market, a sharp check to the
advance in the foreign exchanges and
continuation Of the forward drift in
stocks were the chief incidents in the
financial situation today. When money
rates had their first decline a month
ago funds for sixty-day contracts were
quoted as low as 6Ia per cent on all
industrial collateral. On the subse-
ouent abrupt contraction in the money
supply a fortnight later this same
class of loans were quoted at 71a and
remained at this level up to few
days ago. when the rate was reduced
to Z. 1t was not, however. until today
that offerings at this lower figure be-
came large enough to really count.
The increase in the supply of time
money. which occurred following the
previous drop in rates on loans OF all
testimony SO far given that the money
situation is steadily working easier.
Action in steel.
low the $50 level. thus comparing
with Tuesdays high of 3.s2A. There
was no significance to this decline
beyong the normal reaction in mar
ket which. has been going up bit
too constantly and somewhat too fast.
In the stock market realizing sales
had their effect upon some of the re-
cent leaders and there were again q
few individual weak spots due to the
publication, or else to the expected
publication. of poor earnings state
ments for the last year.
Especially Strong.
But the principal movements of the
struck the same note of confidence
that has distinguished it right along
FOR the past week or more. Oil shares
were among the favorites. and there
was a good deal of discussion as to
the possibility of an increase in the
Petroleum made a new high.
Once more the action Of the steels
was very impressive. These stocks
were helped by the very strong show
ing in the Republic Steel statement
or 1920 with net profits equal to s19
share on the common stock.
While the president Of the company
made it very plain that these profits
rad been piled up in the first three
quarters of the year and that the
,cprsssion Of the last three months
lad been severely felt. the thing was
hat Republic. like Bethlehem and
r .ackawanna. had accumulated so
'arge surplus from last years
BUSINESS that 1t could easily afford
;ix-months' period this year of indi-
.atrd deficit.
.his was the view which the mar
'ieL took of the steel situation today
md it was ra-Iacted in the new high
or the current movement in steel
,nmmon. and in the strength Of inde-
pendent steel shares.
American Ice.
The activity at rising prices in
American Ice shares was a rather
belated recognition of what the ex-
traordinary winter means for the
earnings of this company. The VIM
rr OF 191s-19 was also unusually
raild, and a result American lees
earnings broke all records. This year.
with the natural ice harvest even
more Of a failure than it was two
years ago. it is confidently expected
that still another high record will be
established at the close of the COM
pany's fiscal year October 81, next
American Ice has transformed the
character of its business in recent
years.
nnual gamble of the natural ice
rop. It's main production is artificial
ce. As is well known. American Ice
the largest manufacturer and dis
ributor in New York. Boston. Phila-
,e,pkia. Baltimore and Washington.
ne pTeteTTeu StOck DIT oV returns lO
'er cent and the dividend is being
armed right along fully twice over.
foreover. these earnings results have
Jeen obtained after unusually large
-.propriations for maintenance and
depreciation. Almost half of last
ears net income of $4,000 900 was set
side for these two purposes. The
'pshot has been to give American Ice
preferred a much higher investment
rating than 1t ever used to have