The New York herald., 1921-08-28
FINANCIAL NEWS
AND COMMENT
Stock Market Shows Much Ir-
regularity, but Price Trend
Is Generally Upward.

The abrupt recovery Of prices on Fri
day. with further additions TO the up
turn yesterday morning, attracted fresh
short selling. and before the end of the
first hour It was evident also that rea-
lizing sales were q factor in trading in
stocks. Consequently much irregularity
developed before the end OF the short
session. but the major trend was up.
ward. and most active shares left off
with fractional gains. tt was evident
that the Street had not decided that the
Improvement of quotations which began
at midweek was conclusive of a genu-
inc change of market conditions. The
fact that American Sugar, Mexican
Petroleum, Royal Dutch and several
others closed a point or moro under Fri
days last prices indicated that bearish
traders were still ready to exert press
ure against any issue which gave signs
of yielding. The financial community is
taking duo notice of evidences of busi-
ness growth in certain lines and increas-
ing railroad net earnings are receiving
attention. But the sluggish buying
power of the last few weeks has showed
that the public is moving cautiously in
making commitments looking toward
tho future.
While the advance of stocks slowed
down the cotton market disclosed fur
ther buying of the vigorous sort that
occurred on Wednesday and Friday.
Futures advanced about 35 points, equal
to Fridays Vpturn. Market comment
indicates that spinners have been pro-
viding for future requirements on a
fairly important scale, but a little more
time will be necessary to see what for
eign consumers think of the prospect
of small crop In America And the
probability that much of this week s
buying in New York has been to cover
short contracts obscures the outlook for
the immediate course of quotations
The New York Clearing House bank
statement noted that the process Of loan
reduction was going o.. unabated, the
decline OF loans reported in the figures
of actual condition being S27,946,000.
AS was to be expected from this move
ment, there was a marked fall Of de-
mand deposits. but the s55,212,oO0 de-
cline was accounted for in part by a
change In the method of calculating
deposits. The New York Clearing House
ruled during the week that amounts
due from foreign banks and bankers
subject to draft. previously deducted
from gross deposits. should be included
in it's weekly statement thus swelling
the total. That influence was reflected
also in the Joint reserve, the excess re-
serve OF s5.sos,5oo showing decrease
OF s11.1s6,o0o compared with that Of
the preceding week.
| The only bit of industrial news of the
day with a bearing on stocks was the
semi-annual report of the United States
Rubber Company. 1t showed deficit of
more than s4.ooo,oo0 from operations,
partly comprised In a natural writing
down OF inventories during the six
months ended on June 80. The COM
pany's management drew attention to
the fact that seasonal conditions have
influence on earnings during particular
periods which, to a degree. necessitates
the examination of a full years results
for complete picture of the business of
corporation the activities of which
iuctuate from month to month.