The Washington herald., 1921-04-27

NEW YORK, April 26-A new
group of stocks was brought into
prominence in today's market.
Steels came into favor at about the
same time that the demand for Oils
began to wane. Bethlehem. Repub-
lie, Crucible, Replogle and vanadium
advanced 2 to almost points on
the most persistent kind Of buying.
Weakness In Sugar shares was ohset
by frmncss In the Coppers and a
squirt in rails early in the afternoon.
The theory OF a general reaction
vas borne out only during the FIRST
hour. but that later proved to be an
unimportant relapse.
Lower Federal Reserve rediscount
rates are looked upon as near
future development. The financial
committee expects that each recur-
rent easing of call money viii re-
main in force for longer time.
The Burlington refunding operation
which will release as much capitaI
- 1t will Withdraw from the mar
ket. will soon be out of the way.
lose observers of credit conditions
Iake much of the fact that the
british government is making pro-
Eision for payment Of interest on
its borrowings from the United
states Treasury. The cabied an
nouncement that large subscribers
o the Indian loan would be allotted
Jnly ii quarter per cent Of their
subscriptions, came in for favorable
Comment today.
The second-hour rally was due
hiefiy to q sudden demand for in
dependent steel stocks, notably
Bethlehem. class B, and Republic.
rhe former went up rapidly, reach
ing So before noon. In the case of
hese stocks the rise was facilitated
~ the existence of short interest
which had refused TO cover on the
rise of the preceding few sessions.
The Street listened once more to
ak Of a consolidation OF several of
the independent steel companies.
bethlehem, Lackawsnna, Aidvale.
Republic, Youngstown. Sheet and
Tube and Inland were mentioned as
he units Of a possible merger. 1t
was stated that negotiations right,
be started before the end Of this
car. This is a subject which has
figured in Wall Street gossip semi
Innually for several years past. On
each occasion the story has been
lenied. only to revive with a differ
ent alignment OF companies. On
his occasion a steel man was quot
ed as estimating that a saving of
) a ton could be effected by a COM
,ination Of the independents. The
specific story responsible for Beth
chem B taking the lead in today's
market was an estimate Of $1,000
900 as the compsny's net earnings
Tor the first quarter.
The shading of time money rates
,esterdsy was followed today by
he quotation of an easier rate on
commercial paper. Prime bills
we're discounted at TX per cent,
cduction Of 4 per cent and the
lowest rate on this class Of paper
since May. 1920. The market is not
receiving much new paper and the
principal buyers are banks in the
interior. Having exhausted their
rome markets. these banks are plac-
ing their funds in the New York
market for commercial paper. The
lower call money rates now ruling
have been partly responsible for the
INVERSION of funds into commercial
paper and acceptances as well.
Wall Street confidently expects
that a prolonged forward move
ment in stocks will get underway
within a short time-sfter the pres
Mt price level has been lowered and
the market has had a short period
irregular trading markets. The
Street appreciates that such a move
ment will necessitate more plentiful
call money and that, in turn, an