The New York herald., 1921-04-14
FINANCIAL NEWS
AND COMMENT
Northern Pacific Leads Drop
in Rails Stocks-Steel Price
Cut Slight Factor.

The stock market had slight o?por-
tunity yesterday TO record actual zen
timent in respect to the Steel Corpora
tion's reduction of selling prices be
cause OF repressive influences watch
came from other sources. The ominou5
labor situation in England was one of
them; another was the marked weak
ness of several railroad shares. led by
break of more than points in North
ern Pacific. That the reaction of that
prominent granger rail stock had deep
er roots than speculative disappoint-
ment over the annual report. issued the
day before, was made evident through
the decline that preceded the publ'ca-
ton OF the statement. Every Cay this
week Northern Pacific has lost ground,
accompanied part of the time by Penn
nence. The seriousness of the railroad
situation under present unbalanced in
comes and expenses is growing more ap-
parent as additional monthly state.
market is undoubtedly recording apprc-
hension lest measures for relief, going
through the slow processes of the Rail-
road Labor Board and prospective Con-
gressional investigation, will be COM
pleted too late to prevent dividend re-
ductions.
Considerable time probably will pass
before the real trade reflexes of new
steel price schedules are apparent. The
Iron Age reported that the turn has
caused more stir than the steel market
has known in months and it's effect on
the volume of business is being widely
canvassed." 1t is possible that the Steel
Corporations decision to lower its quo
tations came at a moment when the
trade was ready to respond; in fact, the
head of the Republic Iron and Steel
Company informed stockholders at yes
terday's annual meeting that demand
was slowly improving. although the first
quarter of 1921 had been unsatisfactory
from the standpoint OF production and
profits. But the question was upper
most in the minds of steel producers and
business men whether the cuts thus far
made have been deep enough to stimu-
late buying. whether high wages in con-
struction lines have been Offset suf-
ficiently by the price movement to en-
courage an early expansion of contracts
for steel. When steel was reduced
heavily in 1909. it was only matter OF
weeks before general business growth
occurred. having its basis in new con-
struction. In that year. however, there
was not a multiplicity Of industrial,
trade and credit problems such as exist
to-day and foreign countries were in a
better position to buy American prod
ucts. The domestic parallel is, never
theless. complete to the extent that then
and now the steel industry and general
business are at unusual depths of de-
preston.
The steel stocks again lost ground on
the day, although selling was less ex-
tensive than II was on Tuesday. The
NcdhHSoo WHICH iHtThtu prices was III
such stocks as Baldwin Locomotive
Central Leather preferred, Mexican Pc
troleum, New York Central, Reading
and Union Pacific. these Issues receding
a point to more than points. Call
money was per cent. and an earnest
OF the factors working against an easier
tendency at the moment was contained
in news that Government Withdrawals
of local deposits would amount to-mor-
row to s47.ooo.oOo. Tomorrow there
will be extensive shifting Of funds in
connection with Government and cor
poration activities.
Sterling exchange lost another cent,
getting well below 3.eo, in reflection
of the threatened general strike in Eng
land, but Continental rates were rather
firm, especially lire. In the grain mar
kct wheat persisted lower, the July con-
tracts drawing nearer TO the dollar
wheat level At si.o7 bushel, tho
quotation left of at az cents down and
May wheat lost cents. Cotton also
receded, following the trend OF prices
In Liverpool.