The New York herald., 1921-01-15
FINANCIAL NEWS
AND COMMENT
Stock Prices Trend Downward
in Dull Market-MOney
Continues to Ease.

Stocks yesterday occupied the most
favorable position to reflect actual
events of business and finance that they
had attained since the middle OF Decen-
ber. Fluctuations were comprised mainly
in the casual effort of traders to gain
profits by changing from one side to the
other. There were neither strong efforts
to bid particular issues upward nor
pronounced pressure tending to impart
weak tone to especial groups of shares.
Fridays dealings are not good critic
rion by which to Judge future possibili-
ties, for there is always a certain amount
of transactions near the end of a week
wholly for the readJustment of specula-
tive positions but as the quality of yes
terday's activities was much similar to
that Of Thursday and Wednesday after
noon. It looked as though the market
was disclosing incipient signs OF new
phase. The turnover declined about 80
per cent compared with the preceding
session, and a narrower list of stocks
recent past proves clearly that one may
not attempt to forecast what is to hap
pen from one day to another. It would
be the repetition of a familiar process to
see for a time drifting tendency
troubled neither by a determined effort
by the bear party to force quota tions
lower nor by a resumption of unwar-
ranted attempts to advance prices. The
market passed through a drastic reaction
in December. In the cases Of many in
dustrial Issues the exceptional declines
Of that month have been followed by
substantial recovery. which was not
however accompanied by such an i'm
provement of fundamental business and
credit conditions as to suggest an imne-
diate and forceful forward movement.
The days transactions were largely
devoid of interest. The more evident
trend of prices was in the downward di-
rection. yet there were enough advances
among both industrials and rails to pre-
vent anything except heavy appear
ance Of the list at the close. American
Hide and Leather shares were inclined
to react, evidently because of specula-
tive thought of unsatisfactory results to
be disclosed in the Forthcoming report
for the December quarter. Steel stocks
were irregular. Lackawanna receding at
the same time that United States Steel.
Midvalc and Bethlehem Steel class
were firm. Reading common and pre-
ferred issues were in good demand be-
cause of expectations of information
about methods of carrying out the court
decree of separation. but most other
shares OF the carriers moved indiffer-
emily.
The stock nerlset paid no further at
tention to money rates as the realiza-
ton Of the weeks decline of collateral
loan charges appeared to have been dis
counted in advance. But the action of
bonds. demonstrated particularly in
recovery OF Government war issues. In
dlcated that easier money conditions
were continuing 10 exert influence upon
investment demand. Liberty bonds and
Victory notes advanced about quarter
to a half point. and the corporation bond
group on the Stock Exchange. while
spotted by evidences of profit taking
sales. improved their position slightly
Call money lent at 6 per cent. in the
official market. The days sign OF re-
fa,, T., fa Of
contained in the disappearance of the
diferentiai between mixed and all In
dustrlal collateral. some of the prom-
nent brokers quoting s and 6h per cent.
for both classes. Further light upon
money tendencies ought to be set forth
in the bank statements to-day Last
week there were significant events in
the flow OF cash TO New York banks
and In the reduction of loans and cur
rency by the Reserve System.
News from the textile trade contained
encouraging matter in an improved de-
mand for numerous grades OF cotton
goods. This may have had effec. in a
fairly steady cotton futures market de-
spite a bearish December consumption
report. In that month the Census Blu
reau announced American mills used
294.S51 bales, In contrast to 332.o57 In
November and 1855 bales In December
last year. Wheat declined slightly.
Sterling exchange at 3.72 showed a de-
cline Of Il cents.