The New York herald., 1921-03-31
FINANCIAL NEWS
AND COMMENT
Stock Markets Movements Are
Erratic-Call Money Rises
to z Per Cent.

fFeSn uQlcaIOnS tual liluuSttldl re-
adjustment had not been completed ac-
counted for yesterdays highly erratic
movement of stocks, in which weakness
predominated. For a time in the morn
OF railroad issues was reflected in scat
tered upturns of those shares and OF a
few manufacturing company stocks. but
the firm tone was short lived. A severe
break in International Harvester Com
pany stock. amounting 20 more than IL
points at its lowest level unsettled the
entire list before noon. ard Ydile there
were occasional rallies - arward the
market left or amid fes.ch price unset
tlement. Call money got up TO per
cent on the New York Stock Exchange.
The rise from 6is per cent. however.
did not occur until practically all of the
days borrowing had been completed
and did not figure TO an important de-
gree in current market influences. The
hardening OF money evidently was con-
nected with the usual month-end de-
mand. and the expectation was of a
somewhat easier condition in day or
two.
The decline of Harvester shares, as on
the preceding day, was connected more
with conditions in the farming regions
than with rumors of possible new bor-
rowings by the corporation. In that re-
spect the reaction was accepted by the
stock market community as symptom
of an unsatisfactory situation in the
great agricultural territory, as well as
profits for the company this year. 1t was
learned several days ago that the Har-
vester organization was preparing to re-
duce greatly its manufacturing sched-
ules. which is another way of saying
that the farmers. with large supplies of
unsold products on their hands. are not
IN position to buy new equipment ex-
tensively Reflection of that prospect
was had some time ago in the fall of
fertilizer company shares and the pass
ing of several dividends.
The bears were set to make the
most of weak points anywhere in the
list, with the result that declines of
IL points to 6 points We're forced in
American Woolen, Atchison, Central
Leather common and preferred, Crucible
| Steel. Mexican Petroleum, Union Pacific,
| Studebaker and others. Copper min
| ing stocks felt the force of selling
| which rathar etronoelv uao xuifhbaid
| on Tuesday when the news of the cessa-
tion of production was fresh. 1t ap-
peared as though the speculative atti-
tude toward railroad stocks was d.
rected in part by comment coming from
the steel trade. Steel and iron makers
in this period of exceptional business
lethargy naturally are keenly inter-
ested in any measures for cost reduc-
tion, and an important item is railroad
| transportation. The Iron Age pre-
sented in it's weekly review what is
undoubtedly matter in the forefront
of thought in the trade when 1t said
belief that the requisite freight rate
reductions may take weeks" was hold
lflB LHe INdIkel uOWn. Inc time element
is SO important in the railroad situation
that stocks have become highly sensi-
tive to suggestions that delay may oc-
cur before wage and rate questions are
ready for decision. The steel trade
surveys noted again that purchases b.
automobile companies were helping out,
although the effect was slight as ap-
piled to the entire industry.
Stocks and foreign exchanges moved
Independently, the latter disclosing
frmness all the way along. Sterling.
at 3.93A, held it's cent advance of
Tuesday and transactions were re-
ported for higher figurees Not since
the middle of last July have sterling
rates been equal to yesterdays reported
quotations. Presumably buying con-
tained a great deal OF speculation for
a turn. originating in London and based
on chance that the Bank of England's
discount rate might be lowered from Z
per cent. shortly.
Wheat prices fell 81 to 4a cents
bushel. Cotton was irregular and with
/ mt feature