New-York tribune., 1921-10-31


For several days, particularly in the
two sessions preceding the announce
ment by the brotherhood chiefs that
labor would cease functioning on Oc-
tober 80, the anticipatory stock market
turn lower. On the Monday following
railroad shares were steady in the face
of che disconcerting news, but turned
moderately lower. Since the tendency
was upward, despite occasional set
backs, and at the close of trading last
Thursday before the brotherhood chiefs
decided to cancel the strike, railroad
shares were quoted nearly full point
higher than at the last session before
the calling of the strike became known.
Tho strength of industrial and rail-
road stocks during the period Of un-
certainty regarding the strike indicates
the nature of the speculative under
tone. Efforts to depress prices have
been unsuccessful. Shorts have had
difficulty in covering without bidding
up prices.
After the depressed tale Of the steel
industry, told in the third quarterly
report of the Republic Iron and Steel
Company, financial observers were IA
vorably impressed with the statements
OF the United States Steel Corporation
and of the Bethlehem Steel CORPORA
tion. The latter was the one company
in the industry, which has made public
earnings thus far, which earned the full
dividend on all classes Of stock. The
Steel Corporation statistical summary
was better than anticipated, though It
reflected clearly the effects Of the
greatest period of recession through
which the industry has passed. The
most encouraging sign was tho pro-
gressive improvement by months.
There is no mistaking the improve
ment in the general credit situation.
Despite temporary tightness in the call
money market locally the position of
the banks is gradually growing strong
er, and last week the Federal Reserve
system as whole reported the highest
ratio Of reserves to deposit and Fed
eral Reserve note liabilities since the
present movement Of recovery set in,
Another straw indicative of the drift
is the latest Offering of certificates of
Indebtedness by the Treasury. The
new bills, running five to ten months,
bear interest rates of Az and AZ per
cent, respectively. This is the lowest
rate the Treasury has been able to
borrow upon in its short-term financ-
ing operations. Yet Indications are
that the $200000.O00 issue will be
heavily oversubscribed.
Significant developments in the
business and financial trend are noted
by the Reserve Agent of the Federal
Reserve Bank Of New York in his No
vember bulletin as follows:
The number of workers employed in
factories throughout the country in
creased during September about per
cent, and in New York State factories
about per cent.
The volume of new building under
taken in the country as whole in
September was larger than in any pre-
vious moth this year, and in this
district was larger than in any pre-
vious month for which there are re-
liable records. This activity continued
at high rate during October.
The production of iron and steel and
of textiles shows a continued increase.
The volume of the country's railroad
traffic, especially shipments of manu-
factured articles, was larger during
September and in early October than
in any previous period this year.
Prices of the different groups of
commodities at wholesale, composing