Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-04-30
FEDERAL RESERVE BANK
sTATEMENTA|DS STOCKS
Steel and Railway Equipment
Shares SHOW Gains in EARLY
Trading.
STEEL CLOSES NEAR LOW
Rnmors az Report To- BE Made by
Federal Trade Commission, Conn
planning Against Steel Corpora
ton, Affects Market.
STEEL CLOSES NEAR LOW
Is! II. l.. IlarnuNn,

- lie bhT wi
NEW YORK. April 2c.-Priccs Of
stocks were higher at the opening;
this morning on the favorable state
inent put out by the Federal reserve
banks the FIRST statement since IN"
c1lanTc from the end TO the middlc
or the week Gains Of from two to
three points or more We're scored bn-
tore noon In tho steel and railway
equipment shares, with outside pub
lie buying more active than at n
time since the upward pric" movement
started Il week 3 last Thursday.
S~tudcbakcr was also active. making
"A new high record Tor The year. Be
fore the end OF tho roon hour. how-
ever. dispatches were received from
Washington to the effect that Fed
cral agents had made 4 report on the
oil Situation In Mexico confirming tho
contention Of Secretary Hoover thai
the United States government must
soon look for Its supply OF oil clsc-
where than in the M.NIcan iiclds AS
those fields were likely to be less pro-
ductivc within six months or Il year.
ON this news Mexican petroleum sud
denly broke V points. carrying AT
ianttr, Gulf down with IL. But the
rect or Iho market held strong.
in the late tral.ng. however, dis
turDing rumors came from washing
be made by the Federal tradc com
mission complaining against tho
United States Steel Corporation and
the independents. Wall street as
SuIlltu tn5l the report "puib t'hi
with price agreements. The steel
market closed at or near the low for
the day.
From reliable Pittsburgh stcc,
circles It was lenrned today that Il
meeting OF the presidents OF the sub
s!dlary companies OF the United States
steel Corporation tx scheduled Tor
next Monday 10 discuss wage rcnuc,
lions. Reductions Of both wages
selling prices in the steel trade is
considered inevitable. Such rcduc-
tons should help the situation ia the
trade. Iiowever. It can be sin'fa
the steel industry do not look Tor
run in their limo this year,
Today's Federal reserve BANK
statement showeI ma; a. inc c'9sc
reserve ratio for the system as "a
Whole was up to 81 against Bill Tor
the Same day Of the preceding week,
the highest ginCc August, 1918. Ihcrc
was also further reduction in rcdis-
counts and "A substantial gain In colo
holdings. The heavy Inflow Of COLO
has caused So much congestion ~
the assay Office here that shipments
arc being rcrOutcd 20 philadelphia.
One of tho most interesting news
developments OF the day came from
Washington In III" announcement thaI
Governor Harding OF the Fedora re
serve Board would start shortly Tor
. personal survey OF farm credits IN
the agricultural sections TO OBTAIN
I country bankers for the guidance or
thc Federal Reserve oar In mama
3ling the farm credit problem. mas
much as the position OF tn" nohru 50
Tar has been that the pronlen OF
(oyereNtcndcd bank loans IN tho south
kuS West was one of marketing IN
lead OF banking Wal street iminc-
latcIy jumped at the conclusion ,htt
FedIscotnf rates here n elsewhere
we're to he lowered at once. IheFt
= not tho slightest doubt but that
honey Is working easier. But Until
he member banks pay OF their !oahs
the Federal reserve banks there Is
OF going to ba any rush 10 lower
I,discount rates. No steps In the III
ection are likely to bc taken until
Governor Harding gets near the end
of his country-wide trip which VIII
be around the close OF next month.
Owing to the heavy May ! interest
hid dividend requirements money was
little higher hero today.
Today's earnings ofthc Pennsylvania
Railroad arc very Interesting In view
Z .hc dividend reduction last We'd
(esday and the charge that rs being
widely made that the reduction was
or political that is to help
Aripg about n reduction In railway
wages. For March the system earned
56,672,oc0 gross. an incrcase OF W
$4,000 over March. 1920. hut op"rnt-
ne EXPENSES were reduced si.a32. 600.
haking net s6,i2S.o00 an increase OF
7.i66. 900. After payment Of taxes
nd rentals net income for the month
amounted to S2.16s, 600. an increase of
| no less tina s6.7Ol. 900 eel ms same
month of last year. for january and
February the system failed by more
than $4,000. 900 to earn it's bare OBJ
crating expenses, taxes and rentals.
Even in normal years, January and
February are poor months, and from
h~s.Gavorahle March earnings lust re-
Ltbrted by Pennsylvania, Rock Island.
Union Pacific. Baltimore n Ohio and
others, it looks like the worst part
Of 1921 is behind the railroads. This
with the fact that pennsylvania has :;
very large accumulated surplus from
(which IL could hay paid q quarterly
dividend of ! l-2 per cent, rs well as
he unearned ] per cent actually de-
Haired, is going to make the l3s,UOD
(hareholders of that company and the
harcllolders of other railroads do
ONE thinking. Railway wages which
lave been largely Increased in recent
ears should be reduced, but not at
no expense OF shareholders. many of
HON are women. dependent upon in
foInc which in the case of Pcnnsyl-
ania for twenty years. has remained
he same until IL was cut last We'd
esday.
iQEQTy DOMINO