Evening star., 1921-04-05
MONEY RATES SOFT,
MARKET.F|RMER
Call Loan Rate Off to 5 1-2
Per Cent-CoalerS Show
Strength.
BY $. r. WEST.

NEW YORK, April 5.-The chief in
cident of primary interest In today's
markets was the drop in call money
rates to the lowest of the year. The
renewal on standing loans was re-
duced from 6Az to per. cent. which
was the figure prevailing for a. week
or SO in January. For such advances
the rate fell for the first time o.5k
per cent, thus bringing the regular
transactions ON the outside, which
have long been wen under the rates
fixed by stock exchange officials
In January the 6 per cent quotation
was not justified. as was very soon
proved when banks in the interior
drew down their New York balances
and brought about a state of COM
paratiye tension during the first ten
days of February.
NEW YORK, April ru5-Butxer-E1rm
receipts. s.24S packages. Creamery.
extras ts2 score3. 81; creamery. firts (ss
to 81 score). 4sha51A; packing stock.
current make, No. 2, II.
Eggs-IrregulAr: receipts, 81, lbs casee;
Fresh gathered extra hrsta, 291za30 h;
hrsts. zsha29; state, Pennsylvania
flrsts TO extras, 31a3s; state. Pennsyl-
vania, and. nearby western hennery
browns, extras. ~; do. gathered
browns and mixed cofors. frsts to ex
Chsese-Ffrm; receipts, 2,18s boxes:
state whole milk flats, held specials,
211sa2s; DO. average run. 25a2eh; state.
a241 ~ do, average run. %.
mt ftSa
ratio up 70 nearly So per cent-some
seven points higher than IT was then
the situation is quite different. and
there is no question about the present
decline being fully justified, with the
lowest schedule of rates very certain
to continue.
strong Early.
Although the easing of the money
market was an influence helping the
stock dealings of the day, It was a fact
that the stock market had accom-
plished the principal part OF its recov-
cry before the money market opened.
This would have seemed to Indicate
tho rally would have come about any
way, regardless 0f the course Of money.
An object lesson was given Of what a
large part speculative operations for
the decline had played ON previous
days.
II took tho market no more than
y
ly A. week. This was practical. DEM
onstratton that the recent bear raid
Ing wiIfls 1t succeeded temporarily
in forcing prices down, brought out
very little real liquidation. Recov-
cry was very general. taking In the
rails an wef1 as the industrials. The
street began to talk more hopefully
of tho efforts being made at Wash
ington to solve tho railway wage
question. and there was moro o. a dis
position to accept the view that in
the end settlement would be reached
through a compromise which would
lower wages by perhaps half what
they wore Increased last summer,
while, at the same time. revising
downward the present rate sched-
ules.
The British strike situation re
ceivtd less notice AZ a possible fac
tor in financial. calculations. One or
two London spectaities, like Royal
Dutch, were weak Mt the start. SUBJ
sefuentiy rallying. Pittsburgh Coal
and other coal shares were bought.
Coal stocks.
Coal shares were all strong again
today. as they have been aver since
crisis Buying Of Pittsburgh Coal and
the rest is based on the assuInpti ION
that thsre will be & serious inter-
ruptinn to coal production In Great
BTitsAH ana tftdt LT16 VIII create
larger foreign demand for American
coal. From the point OF view Of Amer
lean producers it would bs most for
tunats If increase in tho export in
quiry were suffici snt to take up un-
used stocks. which have for some ti.,lc
been in excess of domestic require
m ents -..
Pittsburgh coal. to be sure, had a
very prosperous year in 1920. IT had
a surplus OF $6.sS4.o0O after the al
lewance for depreciation, dividends
and taxes, and it's total profit and
loss account on December 81 stood at
over $50. D00, 600. This result was ac-
eomplished after marking down the
inventories to meet the decline in
prices which occurred In tho closing
months of the year and entirely
liauidating the item of biiis- ayabls.
But the chairman Of ths f4ttsburgh
coal board, discussing tho outlook for
1921. made the point that, while labor
was lower and transportation better,
these advantages Were not SUFFICIENT
to offset the decrease In prioes for coal
and the reduced output, The epecula-
tive view which: has haen SHOWING In
the market of the last few days, is
that the English eoai strike would
serve TO tide American companies over
the present depression through eX-