The New York herald., 1921-09-30
FINANCIAL NEWS
AND COMMENT
Stock and Grain Markets Have
Strong Undertone, Bonds
Firm and Marks Up.


yesterday in the markets for stocks and
grain after period of rather uncertain
movements in the first half hour of
trading-and bonds were firmer than
they were on Wednesday. The chief
point of weakness, which was not of
pronounced character. was In cotton.
the future contracts being under steady
pressure from Southern hedge selling
practically all day. Declines of cotton
options ran from 10 to 40 points. Wheat
advanced cent to 2 cents a bushel
and there was a fair rally In corn fu-
lures after the September contract had
sold down to 471a cents bushel, the
lowest price since 1906. German ex-
change rallied from Wednesdays record
low level and the other exchanges were
moderately firm. Call money was at s
per cent. for all loans.
1t is worth while to review all OF these
markets together because OF the indica-
tion supplied In nearly all OF them that
speculative efforts to force quotations
back are not meeting with any great
success. while the money position con-
tinues to favor bonds and sentiment Is
contrary to the belief that a satisfactory
demand will not be found sooner or
later for this years crops. On Wednes-
| day bonds acted as though the supply of
new issues had been enhanced so rapidly
that some concessions would be made in
prices. For a week or more stocks had
been moved about in accordance with
the speculative fancy, making back
tracks more frequently than steps for
ward. But yesterdays changes sug-
gested that the absorptive power of the
bond market remains good and stocks
are sensitive to any new occurrences
which bespeak constructive events in the
future. Several additional railroad re-
ports of August operations unquestion-
ably helped rail stocks forward. the
Chicago and Northwestern. for one.
showing an increase in gross revenue of
s2.650.000, compared with that of July.
the amount saved for net income being
s3.647.000. Going back to August, 1920.
that road reported a deficit Of nearly
| s7.o00.0o0 after adding back pay into
the monthly wage account The decision
of Delaware, Lackawanna and Western
directors to put the stock on ~ per
cent. annual dividend basis-the equiv
alent of "a per cent. on the shares before
the 100 per cent. stock dividend was
paid-had no direct application to other
rail shares. but was stimulating to deal
ings in the railroad department.
Steel, copper, railroad equipment and
tobacco issues We're In the forefront of
the days advance, gains among them
extending from I point to 21s points
Steel common at so was close to its
best quotation of the year. The quar-
teriy statement of holders of Steel was
worth more than a casual glance. show
ing. as 1t did. some possible light on
what has been going on in the recent
holders OF the stock. to whom dividend
checks are to go in the next payment.
were II per cent. more In number than
the names on the books year ago and
IS per cent. more than two years ago,
when the boom OF 1918 was creat ting
heavy speculative purchases OF many
industrial issues. The suggestion from
those figures Is that stocks have been
going away from the market place on
cash purchases In time when indus
trial conditions were decidedly unsatis-
factory.
No new information about the money
and credit situation was contained in
the weekly reserve bank statements.
Rediscounts followed the conventional
practice OF expanding a fortnight after
tax date. those secured by mercan-
tile paper increasing SIS. $500 for the
whole system. while all bill holdings
were enlarged to the extent OF s21. 900. 900.
That growth entailed a rise OF deposits,
the full increase OF that item being
s8.n50o0. Circulation also increased
sI1, $4,000, but there was a gain OF sI4.-
s3s.o00 in gold reserves, which acted 70
prevent sagging in the reserve ratio.
II was So per cent. against ss.7 per cent.
for the preceding week. In New York
gain OF more than s27,o00,ooo in bill
holdings and a rise of s43,0Oo.Ooo IN
deposits caused the ratio to recede.