The New York herald., 1921-02-17
FINANCIAL NEWS
AND COMMENT
Lower Call Rate Sends Stocks
Forward-Industrial Is
sues Active.

A decline of the call loan rate from
per cent to per cent on the Stock
Exchange. reaching a quotation not
seen before In the Official market since
January 20. and an early advance of
sterling exchange helped 20 iInpel stocks
further forward yesterday. The lower
money rate clearly brought out con-
siderable buying OF the Industrial issues,
which had been tagging during the fore
part of the market session, for after
the announcement prices Immediately
gained ground and the business turn
| over increased. It was a rather dull
market. nevertheless and little trading
was In evidence outside of professional
operations. Stocks have acted this week
as though they were feeling their way
along, disclosing timidity whenever de-
velopments have appeared Of possible
unfavorabie import. But It speaks we'll
for the underlying factors affecting the
share list that such news as caine from
the iron and steel trade yesterday could
not impair the steel company stocks.
Buying. the Iron Age reports. is drop
ping below one-fourth of the country's
steel producing capacity. The Steel Cor
poration's activity has declined 10 per
cent. in the last week and indications
are that iron and steel making will be
gradually receding for the next few
weeks" says that periodical The trade
holds, however. that the present period
of dulness will mark the limit OF read
iustment whence healthy demand viii
spring later on.
Reactions of particular stocks during
the morning were reflective in numer-
GUS cases of statements OF earnings TOT
1920. The speculative community has
had its ideas elevated to such lofty lev
els by the extraordinary profits OF war
years that results in year OF partial
business reaction are not altogether pal
atable. A net income equal to more
than SIS a share Of common stock. such
as the Pressed Steel Car Company re-
ports for 1920. certainly is nothing TO
become disgruntled about, but the mar
ket referred to the s27 share earned
In the year before. and the shares were
pressed down. Reaction OF similar
derivation occurred in Baldwin Locomo-
tive. which was followed by a recovery.
There were annual statements among
the days unusually large output which
showed really unfavorable results. in
Guiding an operating loss by the Ma
tional Cloak and Suit Company, and
these cast a dainper on business that
lasted until after the easing OF call
money. In tho afternoon rise of large
fractions to more than a point In active
issues the rails were prominent, aided
by news that the Interstate Commerce
Committee Of the Senate had passed ia
vorably on the winslow bill providing
for partial payment of moneys owed the
roads by the Government. The Street
Ia waiting with considerable anxiety for
final action on legislation to supply the
carriers with funds to which they are
entitled, and failure to complete a
statute at the present session Of Con-
gress would have an unfavorable effect
on sentiment toward the rail shares.
While sterling rose three-quarters of
cent In the morning to s.9115 for
sight drafts, there was reaction later.
movement not surprising in the light
of the recent sharp rise. Francs were
firm and somewhat more consistent in
dealings than sterling. while marks were
In larger demand than on the day be-
fore. The market had few offerings OF
commercial bills on any European CEN
tres, which again raised the question
whether a fall of exports rather than an
active demand for exchange was the
more important influence In the weeks
rise. Silver reached down to 81 pence
an ounce in London. the lowest point In
nearly five years
Wheat receded 3h to cents
bushel In the futures market as pur-
chases became lighter than on Tuesday.
Cotton also receded.