The New York herald., 1921-03-17
FINANCIAL NEWS
AND COMMENT
Rails and IndustrialS Advance
in Vigorous Recovery OF
Stock Market.

An obvious explanation or yesterday S
really vigorous recoveries OF stoclss was
the hurried retreat OF an overextensire
short interest. and there were some rea.-
sons why the bear party found their po-
sition insecure The roots Of the move
inent lay in the earlier market sessions
or the week when sales 70 raise cash for
came for an analysis OF events which
have been in the forefront or public IN
terest Of late. In the first place the lack
OF money strain incident 20 the tax date.
ago, was clear at the end OF last week
! ana IT'S potency as a stock market in
fuence appeared strongly yesterday in
the fall or the call loan rate TO per
cent. in outside transactions. II was tho
first time that per cent. rate had
been quoted in the official market since
March ., and while experiences OF the
nent quarterly settlement" may be only
temporary. the bank statements for the
\ last two months have indicated q grad
raily relaxing situation.
| In connection with money and credit
| reference can be made 20 the accumuls-
ton Of gold now going on and which was
especially emphasized yesterday by new
| imports from several parts of the globe.
With the use Of credit slowly declining
and with the basis OF credit rapidly ex-
panding, 1t is not surprising that atten-
ton should be drawn sooner or later to
the country's gold supplies in terms OF
stock market import. The Department
OF Commerce reports that in tho seven
months OF the fiscal year ended with
January the net receipts OF gold, the bal
ance OF imports over exports, were S2l2.-
e0s .Ts2. In the same brief period in the
la ST fiscal year the balance was the other
way, exports exceeding imports by $2So.-
7s7.o45. The Federal Reserve system
has gained s42S,s2s. 900 in gold reserve
since July / and s463,S43,ooo since
March 10 OF last year. In periods like
the present, when business Is slack, less
attention is paid to the size OF gold
stocks in the central bank system than
when new credit demands are constantly
spr.nging up. but what is going on is GER
tain to be Of vital influence when in
dustry and trade begin 10 pick up.
The stock market was buoyant after
an hour OF rather Irregular price move
ments OF certain industrial issues in
the morning. There was no pressure
TO speak of anywhere and the breadth
of the advance was emphasized by the
almost equal participation Of railway
stocks and industrials In the recovery.
Advances in excess OF 2 points in Amer
lean Smelling and Refining, California
Petroleum, Corn Products. Great North
ern preferred, Mexican Petroleum, Nor
folk and Western and Union Pacific
showed graphically the scope of the buy
ing movement, while gains Of q point or
more were recorded by Baldwin Loco
motive, Baltimore and Ohio, New York
Central, Pennsylvania. Reading and
Southern Pacific among others Of the
standard group. An active final half
hour OF trading saw some OF the best
quotations Of the day. The bond list
was firm If the money market con-
tinues TO disclose case after the shift
ing Of funds incident to tax payments
has ended. ii is probable that numerous
new ISSUES Of bonds and notes viii APP
pear.
Two factors OF primary interest for
Industry were temporarily eclipsed by
other matters during the day. The
railroad wage situation could either be
considered as somewhat better as far as
sentiment was concerned, citing the in
stance of workers on small branch of
the Central OF New Jersey accepting
the proposed reduction. or unchanged IN
respect to general refusals elsewhere
to meet the suggestion OF railway man
ayers. Tho steel trade was seen,
through the weekly reviews, TO be APP
preaching rapidly state OF rather gem
eral paralysis. The Steel Corporations
mills were reported down to 45 per
cent of capacity, a decline from 65 per
cent in a week, while the industry 40
a whole was described rs working at
no higher n level than 35 per cent. Sull
the Iron Age noted some improvement
OF operations in middle Western plants
which had been partially or entirely
ciosed down. The steel shares were not
affeeted by tho gloomy presentation OF
facts In the trade
Tho foreign exchanges we're steady
and duh Cotton gained 4 little ground
and wheat futures advanced about
cents a bushel.