The New York herald., 1921-07-14
FINANCIAL NEWS
AND COMMENT
Stock Market Has Dull Day,
but Mex. Pete. Rallies-Trad-
ing Still Professional.

The stock market continued yester-
day to fiuctuate aimlessly and its trans
actions comprised a small total Ex-
cept for sharp rally in Mexican Pc
troleum, which stimulated short cover
ing in several other petroleum company
stocks, there was no feature in the days
trading. The market remained in the
hands Of professional speculators whose
efforts were devoted almost entirely to
feeling out individual issues. hoping to
uncover weak spots. In that they were
only moderately successful. although
the quarterly report of the Lackawanna
Steel Company supplied some ammuni-
steel shares. That company's deficit Of
$3.50, 900 in the three months ended on
June 80 was not surprising in the light
of known trade conditions, but the
statement was emphasized by the fact
that the loss before paying interest and
allowing for depreciation amounted to
more than S3s4.000. In other words,
the direct product of the quarters mill
operations after meeting taxes was
loss. and its bond interest. &c, had to
be taken out of its surplus. The COM
pany's surplus Is large and the deficit
of s974, 900 for the full half year makes
proportionately a small inroad on 1t.
Presumably that fact had weight with
the followers of steel shares. as Lacka-
wanna receded no more than point
and Steel common gained a fraction.
Steel trade news received considerable
attention in the Street. chiefly because
Of information in the periodicals which
pay especial attention to the industry
that wage costs and prices were going
lower irregularly. The Iron Age men
toned predictions that % cent an hour
rate of wages for common labor would
appear before concessions ceased. in con-
trast to 80 to 81 cents now being paid.
The desire of producers to cut down
labor costs is inherent in the current
manufacturing situation. A further
shrinkage, instead of growth, Is re-
ported in new orders since last week 8
price reductions were put into effect.
The industry still is feeling acutely the
absence of railroad purchases, but in
that respect hope is held out by the
movement in Washington to have the
roads reimbursed for expenditures for
capital account which were made out Of
earnings during Government control of
them. When the carriers shall be in a
better cash position, the impression pre-
walls among steel makers. rails. track
materials and equipment will be ordered
on a substantial scale. Buying of pig
iron is showing improvement compared
with its record of last week.
Railroad stocks generally drew back
yesterday. uncertainty about the status
Of wage readjustments evidently pre-
vailing in the market. Complications
involved in the abolishment of the ma
tional agreements are not altogether
understood. but the attitude of the
United States Railroad Labor Board and
the tendency of the times promise to
iron out that situation soon.
The foreign exchanges acted peculiar
ly in view of the news from Berlin that
the German Government had available
$50, 100000 marks for August repara-
tions payments. that sum being COM
prised In a credit in Holland. The mar
ket seemed to be uncertain about addi-
tional suggestions in dispatches from
abroad that other credits would be ar
ranged, doing away with necessity of re-
mittances of exchange for payments due
by August 81. Sterling was firm for
time, but receded in the afternoon. clos
ing a cent lower than 1t did on Tuesday
and with a final quotation of 3.64A.
Marks were steady. but other European
rates eased off. 1t may be that the rep
arations are having less of sentimental
and practical effect on the exchange
market than are bills being drawn
against grain, cotton and other mer-
chandise for export 1t is interesting
to learn that large credits for purchases
of grain for Germany are being ar
ranged here and in London.
Call money was at 6 per cent. all day.