The New York herald., 1921-07-27
FINANCIAL NEWS
AND COMMENT
PgisaS Of Stocks Soften After
Rails Early Rise-Steel
Report Encouraging.

The stock market saw again yesterday
the spectre of poor business results in
the second quarter OF the year vested In
deficit in excess OF $4,000. 900 by the
Central Leather Company and in several
passed or reduced dividends. Prices be-
gan TO soften after an initial upturn of
railroad shares. and in the afternoon the
industrial list gradually drew back until
declines OF one point to more than two
points were widely distributed. The set
back. more pronounced In stocks that
had been firm on Monday than in others,
appeared to be the product of moderate
selling for the short account. Tho vol
ume of business was too small to indi-
cate any material pressure from holders
OF long stock. For that reason the mar
ket following attached little Importance
to the price movement and sentiment
was helped somewhat by the United
States Steel Corpora tions quarterly
statement. made public after the close Of
business.
A deficit after dividends had been ex.
pected of that company. but the fact
that it had been able TO earn enough to
prevent larger levy on its surplus than
s4.50o.o 900 was an agreeable surprise to
the Street. Instead of estimated net
earnings Of $10.o00.o0o to $4,000. 900
the corporation reported s21,so0, 900.
Standing by itself. the report was satis-
factory in the light of news from the
steel industry during the last four
months. The company's decidedly small
net income of $685. 900 in June, how
ever. contained little promise of good
profits during the summer period The
observations Of Judge f. H. Gary. its
chairman. after the meeting of its d.
rectors showed that he saw better condi-
tions at work in the steel trade although
he was more confident of large growth
in the further future than In the present,
The more noteworthy features of the
financial markets were again comprised
in bonds and money Railroad issues
and bonds of foreign countries moved
forward under fairly active bidding, and
reports from bond dealers showed that
recent new bond offerings were going
out rapidly to investors. The bond mar
ket continues to act as though confidence
is growing in the belief that credit and
money are heading into a period Of con-
sistent ease. Acceptances were quoted at
a quarter per cent. lower than they were
on Monday. Some sizable loans for COL
lateral funds on time were arranged at
s per cent, and while the call loan rate
got no lower than per cent. on the
New York Stock Exchange-receding
from renewal rate of 5H-there were
large offerings outside at per cent.
The investment markets strong posi-
ton suggests that If the War Finance
Corporation is authorized by Congress
to extend its functions to certain railway
financing there shortly will be offerings
of paper backed by railroad obligations
held by the Director-General Of Rail-
roads. President Harding presented to
the Congress the financial situation Of
the carriers and proposed measures of
relief in fashion which appealed to the
banking community. Although his atti-
tude. which has the support OF the Secre-
tary Of the Treasury, was made known
in several announcements prior to his
message of yesterday, that address out
lined his plans moro fully than had any
previous Presidential message. Railroad
stocks received some support from the
news from Washington. although the
market was too dull to denote any new
accumulation Of rail shares.