Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-21
DROOP IN
STAGNANT MARKET
Favorable Influence Of Reduced
Discounts Offset by Discour-
aging Washington Advices

New York. July S21 Overnight de.
velopments were OF distinctly con-
structive type. but instead of respond
economic situation the market sunk
deeper into the mire Of inactivity.
Trading was even duller than the re-
cent sessions and the market, as a
whole. did not possess the same degree
of stability. On the contrary. with the
further contraction In the volume of
dealings there was a distinct dropping
of prices. In scattering parts Of the
list pronounced weakness prevailed.
None OF the changes. however. possessed
any particular significance. other than
to further emphasize the narrowing
limitations Of the trading area.
Measured by the further reduction In
discount rites, those in control Of the
financial arteries here and in Great
Britain are apparently satisfied with
the progress made in the liquidating and
defiation OF extended credits. The sim.
ultnneous discount rate reductions by
the Federal Reserve Banks and the
Bank Of England may be accepted as
conclusive testimony Of things generally
getting back to normal. The Bank of
England minimum discount rate was
reduced from to 5h per cent The
higher rate being maintained since June
%. The reduction. announced after
the closing yesterday by the Boston,
New York. Philadelphia and San Fran
cisco Federal Reserve Banks in dis
counts on all classes Of paper to 51a
per cent marked the third reduction
during the current year and brings the
rate back to n halfway point between
the high and low Of recent years.
An pffsnttiny Influence Dnsaihly WAS
found in the news from Washington In
dicating II will be some months before
any legislation on either the tax or tariir
bills will be accomplished. 1t is be-
ginning to look as IL nothing actually
will be accomplished before late in the
fall. Supplementing this wet blanket
on the hopes of an early revision Of
taxes cnme the reported statement by
Senator Penrose that he does not look
for any radical change in the tax stu.
alton. Additional restricting influences
were contributed in the unfavorable
earnings reported for the second quar-.
ter by the Republican Iron and Steel
Co. The big deficit, however. was gem
orally expected. being clearly foreshad-
owed not only by the knowledge of the
low ebb of the steel industry. but also
in the recent poor showing made for
the same period by the Lackawanna
steel Co. Another adverse influence,
particularly affecting the Mexican oil
group, was the reports of fires in the
Amatlan oil fields In Mexico.
Following dcsultory covering OF the
shorts at the opening, the market lapseu
into extreme dullness during the morn
ing. An idea of the stagnation can
be appreciated from the fact that the
first hours sales. usually the busy
period Of the day. fell considerably be.
low 100, 900 shares. The foreign oils.
which were heavy at the outset. sus-
taincd further losses. Mexican Pctro-
leum. Pan American. General Asphalt
and Royal Dutch declined one to two
points. ThP steel shares and motor ac-
cessorics. including the rubber issues.
continued TO ease. Changes among the
rails were irregularly divided between
fractional gains and losses.
The dropping tendency Of prices at
tracted more attention in view OF the
easier money market conditions. Call
money reflected the lower discount rate
with the renewal rate fixed at Jla per
cent, against the recent ucr cent
rate. Foreign exchange continued un-
settled