The New York herald., 1921-03-12
FINANCIAL NEWS
AND COMMENT
Stocks in Precipitate Decline,
Which Spreads Through
All Other Markets.

4 y
which bordered on violence, ana recess
sions Of cotton and grain indicated that
similar forces were at work in all OF
4 the markets. The fact taat tho volume
or yesterdays trading n stocks was
one OF the largest OF this year Was in6i-
ative OF considerable disturbances or
speculative conditions, which seemed to
be more the cumulative product OF events
In the railroad field than the result OF
any really new occurrences. No group
/ OF shares escaped tho food oa selling,
which became more extensive as time
/ passed. Reference TO some individual
| recessions iliustrates the calibre OF the
days business and throws more light
upon the market situation than any
comment would Losses running from .
to more than 1 points were recorded by
Atchison, Cruciple Steel. General AS
phalt, Houston Oil. Mexican Petroleum.
Norfolk and Western. Pan-Arnerican
Petroleum, Southern Pacific, southern
Railway and United states Rubber 1t
was not surprising perhaps that s,,ch "a
/ volatile issue as Mexican Petroleum
should have fallen 1895 points in a
market like yesterdays, but considerabl
significance was attached to the esta b.
| lishment of a new low record for the
| year by Steel common at 7S. which was
the lowest and final quotation Call
money stood at per cent. all day.
Undoubtedly the activity OF short
/ 5ellers continued to apply very real
hlpetus 10 the downward course OF
stocks. but il was evident also that
| liquidation played an important part.
| The market action bore close resem-
blance to the sessions of the hrst week
CT December last year, and every ono
knows now that a scramble for cash for
income and excess profits tax payments
forced much selling then. The expert
snee OF that hectic week and OF several
.ater davs preceding the tax date sug-
gests that something Of the same sort
! is going on now and has been speeded
up In the last few days BY the fears OF
owners OF securities that the market
might get away from them. II iiquida-
ton o. stocks FOR tax money was OF
large extent on Thursday and % greater
proportions yesterday. 4 would be req
scnable to assume that this pressure
would relax to-day. Brt more formid-
shle and lasting influences are at work
and the financial community cannot get
see the way out. a broad decline or
securities-bonds shared in yesterdays
reaction--ls evidence that Fundamental
conditions OF industry and Transporter
zion are not right, and It IL realized
generally that until the railroads have
completely readjusted their costs TO cur
vent gross income the business outlook
cannot be considered anything else than
uncertain.
The best information obtainabe fore
casts stubborn opposition hy railway
labor organizations to the proposed
schedules. Labor which is less thor
oughly organized than the shop crafts
solid front to present to the rail man.
agements But what the followers OF
the security markets are concerned
about IL the possibility that even in
cases whero the most logical argument
for reduction of wages is presented
the subject will be taken under review
BY the Railroad Labor Board which
will mean some delay IN a decision
a glance al the latest monthly reports
Of railroad income shows what this
Will mean, assuming that traffic dis
closes IN the next few months no i'm
provement compared with present ton
| nages.
For the first time since a rally began
in the foreign exchanges last Monday
afternoon rates were inclined lower
yesterday. The volume OF business was
small. and probably the reaction OF a
cent TO the pound in sterling was moth
ing more than might have been ex-
pected after an advance Of about Az
cents IN five days. Sterling rallied near
the close. An interesting item or news
having application to the exchange and
money markets was tho reduction from
eA to per cent. in the discount rate
for Treasury bills ii London. Last
April when the rate was raised a half
per cent the change Immediately pre-
ceded rise OF tho Bank Of England's
rate. but Il does not follow that the
bank will now let itg rate down On
this side the attitude or the Federal