The New York herald., 1921-04-20
FINANCIAL NEWS
AND COMMENT
Movements Of Prices in Stock
Market Conflicting-Call
Money Drops to 6 P. C.

L int Oh yCSltEQdy SNONh
market was difficult OF analysis by rea-
son of the conflicting movement OF
! prices among different groups OF shares.
AS far as surface indications went there
was little in evidence beside casual
| operations Of professional spectators
who sought quick profits on one side or
the other. wherever their efforts prom
.sed the easiest results. But the con-
tinued strength OF oil company issues
had at least the temporary support OF
better news from the crude oil market,
and in view of the great decline of
| prices during the winter the question
was worth considering whether or not
that industry was passing out OF the ex-
trene stage OF its depression. The final
price list disclosed much irregularity,
I fractional declines predominating and
weak spots showing among sugar and
steel issues. Business was decidedly
| light in volume.
One mans guess about the money mar
ket is as good as another's at the pres
ent time, for yesterday. despite heavy
call loan rate went from to per cent.
In borrowings on the New York Stock
Exchange That the speculative frater-
nifty has become wary of basing opera
tions on the changes OF the call loan
quotation was shown In the fact that
the easing of the rate brought no in
crease in purchases of stocks. On the
I contrary, business was quieter after the
rate moved off than before; the short
interest was not moved to cover Its short
lines of stocks nor was there incentive
for purchases for a turn. Presumably
the return Of checks sent out by cor
porations as dividends at midmonth and
the cashing of interest coupons helped
to increase loanable bank deposits at
| New York, these being factors likely to
have influence on money for few days.
Yet the general Federal Reserve posi-
tion at the end of last week forecast
merely gradual easement OF the credit
situation for considerable time. and the
Treasury's working balance of about
| $500. 000. 900 is sufficiently low to cause
bankers and investment men to study
constantly the outlook for new issues OF
certificates.
The upturn of certain crude petroleum
prices has been accompanied this week
by uneven but positive evidences OF I'M
proving business conditions. The state
ment by the head of the United States
Rubber Company yesterday. which told
of decided growth of automobile tire
sales in recent weeks. is an earnest OF
what has been going on In the motor
transportation field since spring days ar
rived. supplementary indications of bet
terment being found in reports of in
creased employment at manufacturing
centres There may or may not be
connection between suggestions OF
gradually expanding domestic trade and
the record of wholesale price move
ments: at any rate, the Bureau of La
Dor reports for March a decline OF no
more than per cent in its wholesale
price list OF commodities, compared with
a fall of Sc per cent. In February, OF
ga per cent. in January and 81 per
cent. in December. A supposition is
permissible that In certain lines OF
consumption demand has improved
sufficiently to check the price reaction.
although in particular departments the
decline was pronounced last month and
still is proceeding. notably In grain.
Wheat futures fell az cents a bushel
further yesterday. the July contract get
ting down to s1.O2 before moderate
late recovery occurred. Cotton also
continued TO move downward.
The peremptory demand of the allied
Government for custody OF all the Ger
man Governments gold had no refiec-
ton In the foreign exchanges. Sterling
hardly moved and Continental rates
were no more than soft. The s2So,ooo.-
900 or so OF gold in the Reichsbank Is
Of no great account as reserve against
the enormous issues OF currency. nor
would the removal Of the metal have
much influence on Germany's position
1 in the matter of rcparations. The ex-
changes are showing little interest In
the reparations situation.