The New York herald., 1921-09-16
FINANCIAL NEWS
AND COMMENT
Stock and Cotton Prices Trend
Lower-Easier Money Is
Outlook.


traces OF the recent vigorous speculative
movement of prices, the tendency both
in stocks and cotton being toward lower
levels during the later hours, with
great deal of irresularity in early trad
Ing. The action OF stocks throughout
the session indicated that pool operations
In three or four Industrial shares were
confronted by steady output OF profit
king sales. with the result that efforts
10 bid quotations upward ceased around
from per cent to Al per cent, the
lowest figure in fortnight. furthered
srasmodic recovery in the third hour of
trading. but when the rate again went
offerings OF stocks increased and prices
left of unsettled, with general declines
running from a point to IL points
among the more prominent stocks. Cot
and the spot price fell back full half
cent pound.
The market movements contained
! nothing unexpected: in fact, business
ground of last weeks rapid changes. In
this both stocks and cotton followed
precedents established In many other
years of sudden and rather spectacular
crtbursts of trading. Although general
business is believed to have turned the
corner. 1t is too soon after the appear
ance of constructive signs to determine
whether the pace of improvement will
be sufficiently fast to warrant a broad
rise of share prices. In the case OF cot
ton the statistics of growing crop and
world supplies have been digested by
spectators and spinners, and in this
market also there is need to wait for
more detailed facts about the outlook for
consumption to show whether or not the
rise from 11ia cents q pound to the
current prices in the last two and half
months has discounted events in the
textile industry for considerable time
to come.
| Such q reaction as that OF yesterday,
following Wednesdays uncertain price
movement the day before. Is described
as technical. There were no develop
ments with application to stocks or COM
modities which had depressing influ-
ence. In fact. the position OF money
rates at the moment when payments of
more than $500, ,00e. 900 in income and
| excess profits taxes we're being made.
together with large Government finan-
cial transactions pointed toward greater
ease in O few days. The weekly Re-
serve statements strengthened that i'm
preston. The Reserve systems aggre-
gate reserve was $31 900 ,000 larger than
1t was In the preceding statement, chiefly
| through additional accumulation of gold.
| and bill holdings were down SSf 500, 900.
| That large decrease presumably was
connected with the payment by the
| Treasury OF certificates in advance OF
their due date. which was yesterday, but
1t is likely that Reserve banks are feel
ing also the liquidation Of loans result
ant from the marketing of Gotten and
grain. Bills held by the New York Re-
serve Bank receded no less than
sos. .560.O 900.
The joint report of the twelve Reserve
banks showed that Reserve notes in cir
culation. which increased more than
| SEQ. geo. 900 in the preceding week, were
reduced nearly s26,eOo.oOo. not un-
natural movement after holiday use Of
currency was over. That contraction,
with a fall OF more than s12,200.oe0 in
deposits and the large growth of re-
| serve carried the ratio OF cash to de-
posit and not liabilities upward 1.3 per
cent. to s7.5 per cent.
| with the exception OF marks. Euro
| pean exchanges gained ground sterling
advancing IL cents to 3.701a. The
| German rate was unsteady at .s2 cents
a mark. The Bank Of England's rate OF
minimum discount was left unchanged
this week. A reduction had been fore
| cast. but 1t IL evident that the banks s
officials are considering probable au-
tumn demands for credit IL trade con-
tinues to expand rather than current
money case.