The New York herald., 1921-09-14
FINANCIAL NEWS
AND COMMENT
Actions Of Markets Less Spec
tacular-Rails Advance and
Call Money Eases.

The markets for stocks and COM
modities proved yesterday to have been
benefited in a speculative sense by Mon
days reaction. There was less haste
and more consideration of economic in
fiuences In trading in cotton than had
been seen In ten days, and traders in
stocks appeared to direct operations by
several constructive developments Of the
day instead of leaning on suggestions
from the realm OF rumor. Declaration
of the usual quarterly dividend by the
Great Northern Railway was Of consid-
erable effect in guiding rail share prices
to higher levels in the afternoon and the
news that $7,50o.000 of car trust certi1-
Gates had been sold by the Railroad Ad-
ministration to banking firm on per
cent. basis impressed the Street with the
fact that a somewhat unexpected way
had been found to relieve the cash etrin-
gency from which certain carriers were
suffering because Of delayed settlement
OF claims on the Government. The stock
market was healthy and decidedly strong
It is not clear as yet that public par
ticipation is extensive. but the course Of
prices since August l has indicated
plainly that offerings OF stocks are scanty
when pools undertake to bid them up.
The appearance OF the stock list at
the close suggested that the latent short
interest had been stirred by the ease
with which certain prices advanced,
which was especially true of such
shares as Republic Iron and Steel, with
gain In excess Of points. and in
Baldwin Locomotive and Mexican Pc
troleum. But 1t was the rail group
which supplied the really sturdy under
pJnning of the days dealings, increases
of IL to points being recorded by
Great Northern preferred, Northern Pa
cific, Reading, New York Central.
Southern Pacific and others. The in
itial movement to supply funds to the
roads through sales of equipment trust
certificates does not, of course, fore
cast a complete relief Of the carriers
through that medium. 1t is doubtful
II the entire 1910, 900. 900 of such paper
held by the Railroad Administration
could be distributed on such favorable
terms as vas the first lot, as the price
for the latter was more than the gen.
eral level of investments of that char
acter, but as an earnest of the inten-
ton of the administration and Of bank
1a fro NJ
was of much sentimental value. A move
ment for what amounts almost to self
help in this difficult period should lessen
opposition to proposed remedial leglsla-
ton when Congress convenes.
1t was a debatable question whether
the rise Of stocks helped the cotton mar
ket or whether 1t was the other way
about 1t has been obvious for consid-
erable time that the relationship be-
tween market movements has been close
ever since stocks and cotton began to
look forward n month ago. and grain
has fluctuated mainly with the others
Wheat futures advanced 2A to az cents
bushel speculation reflecting reports
of severe crop damage In the Argentine.
Bonds also were strong and active
under broad dealings. The sale of the
block of car trust certificates raises .
point Of interest In regard to the In
vestment market and to money rates.
The trend OF bond yields Is distinctly
downward. and although a 8 per cent.
basis for the railroad issue Is above the
market for the moment, some competent
bond specialists hold that In a short
time long term securities of excellent
ratings win be again at 6 per cent.
Call money eased off yesterday to 8 per
cent. on the New York Stock Exchange.
and loans secured by acceptances were
| made outside at Az per cent
Sterling exchange receded III cents
to 3.714. but marks were a little bet
ter than they were on Monday. being
quoted at .93 cents. Sales were reported
at .94h cents, a natural rally after the
recent great fall.