The New York herald., 1921-01-05
FINANCIAL NEWS
AND COMMENT
Stocks, After Advancing, Turn
Irregular-Market Broad
and Resists Pressure.

The way in which stocks first ad-
vanced yesterday and then fell into a
great deal of irregularity was quite in
keeping with technical conditions Of re-
cent growth. Such a recovery as that
OF last week continued through Monday,
and the initial hour Of yesterdays trans
actions carried with 1t the urge of
realizing sales. Also, an advance OF 4
to IL points above the low levels of
December. without any really sub
stantial support from altered business
and credit conditions. was enough to
revive activities of the ever ready bear
element. In examining the. course of
| industrial and railroad shares at the
close OF business one had reason to find
satisfaction in the manner with which
prices resisted selling pressure. While
petroleum stocks displayed weakness.
led by fall Of points in Mexican
Petroleum, the rank and file of manu-
featuring company issues scored many
slzable net gains. Stocks which re-
ceded most rapidly in the afternoon
were in the main issues which had
risen in the morning. and their net de-
cl!nes were largely fractional. The ag-
gregate of sales was we'll up toward
100000 shares and dealings comprised
broad list OF stocks Call money stood
at per cent and time funds were nor
quotably easier than before.
The question of foremost interest in
financial circles at this time deals with
the probable course of business in manu-
featuring and distributing fields in the
next few months. That business is like
ly to improve from current standards
before the end Of 1921 may well be
argued for the reason that such inactiv-
ity as exists in many lines forecasts
betterment later on; otherwise the con-
sumption of necessary goods Is destined
to period of stagnation more prolonged
than in any panic period of the past
But while expectation may attempt to
establish approximate dates for real
business and trade revival. it is obvious
that the way Is not clear yet for accu-
rate forecasts. At the year-end many
corporations survey their inventories
and check up complete results during
such tremendous declines of prices, such
widespread reversals OF forward looking
plans and such drastic cancellations of
orders as have been reported in 1920. it
stands to reason that producers and dis
tributers of goods and materials will
have to recast largely their schedules
for 1921. The process of reestabishing
business balance is not likely to be
completed this month; 1t may require
part of February. But in the light of
the great alteration OF sentiment in re-
spect to profits and gross turnovers
which has occurred since last July. the
forecast Is permissible that when busi-
ness does get going 1t will be upon a
basis more healthy than in any of the
last three years. The comment of manu-
facturers and bankers indicates that
moderate profits. cautious placing OF
forward contracts and economical meas
VI itS Api maj nShlhG PACuuSbS WAii NC dd-
hered to this year.
The enactment of the measure revivng
the War Finance Corporation over the
Presidents veto became a foregone con-
clusion with the Senate's vote on Mon
day. Now that the House has acted, 1t
remains to be seen how the effort to
finance foreign trade under Government
sponsorship will work out. 1t remains
to be seen whether the demand for
American products actually will be
stimulated abroad and whether the
countries most in need of those products
can supply the security for credits which
will be acceptable to those who will be
called upon to supply them. Grain
prices advanced for a time yesterday
when news OF the action of the House
was received. but later receded. Cotton
declined on the day about half cent a
pound, eliminating about half of Mon
days strong advance. It Is interesting
in connection with the revival Of the
War Finance Corporation to learn that
British bankers have consulted with
! Premier Lloyd George about the extern
sion of credits TO foreign buyers. such
credits TO be insured in a fashion not
yet announced.