Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-01-22
MARKET SUGGESTS
TRANSITION STAGE
Speculative Influences Weake,
Before Steady investment
Demand

New York, Jan. 22.-The fnsr,,,
outlook Is presented in the Herald %
day as follows:
The current week in Wall stree, va,
more clearly stamped, perhaps. w,,s
the outward phases of transition th,a
previous weeks Of the new year. IN.
fehture Of the securities markets ~
this period was consistent inyestmor,
demand which encountered less NJ ~.
repressive influence Of speculative Offer.
ings.
Several elements Of altogether lo,,c.,
development entered into the sit,ot,o.
from the viewpoint Of both the bnvsa
and the seller. Liquidation in 6Sn i6So
was carried to degree Of satIlration
by December as to compel readinS,.
I1ent Of IDEAS and. eventually. Of nosi.
ton within the market itself. Tbs
eventnality as 1t appeared last month
seemed to take definite shape this wesI
in the sense that the investment ousVt
was defined in manifest lines, '''
The advance in values, partok;nc a,
the, spectacular. was restricted ia sns.
clalty issues. Standard shares on m.
other hand: comprising preferred stocks
rejecting the influence OF increased sc.
tivity. In the bond department. wers
absorbed in a manner to suggest n mn.
terial reduction in the floating SUNNY
AT the same time the short interest
became more and more circumscribsS
The onposing factors tended to neutral,
ize initiative in any direction, n stua.
tion conducive, indeed. to bulges NJ In.
tcrva's without greatly affecting the ne.
result.
Much Credit StiIl Tied Up
The change to BE- reckoned with VA,
one Of sentiment. Money worked eosisr
in the first half Of the week and still.
fcncd in the second half. Aside from
the cal ing Of funds from this center
to the interior and the withdrawal OF
government deposits from the banking,
amounting in the aggregate to Sal.
OO0.WO. the member banks were en-.
gneed in paving of their obligations
TO the Federal Reserve Bank.
That n good deal of credit was stir
tied up was scarcely TO hc gainsaid
Time funds were marked down in A
measure and finally crysta'lzrd at 0 10
Gla pcr cent. but business in that quar-.
ter was at low ebb.
The banks were as careful in extend.
ing loans as at my time in recent
months and none the less determined 10
discourage bullish operations in the
stock market. Nevertheless the reserve
position of the banks has shown in.
provcmrnt, particularly in industrial
ccntcrs where payro'ls have been greatly
reduced by the laying of of workmen,
reduction In the wage scale and cur.
tailed hours of employment. a double.
edged process. however. which carried
implications of difficulties elsewhere
than in the strictly banking field
Period OF Quicscence
The outlook promised period o.
quiescence. The near approach Of q
change in administration at washington
worked for hesitation in market com.
mitmcnts. wholesale and retail i1uda.
tion has gone far enough 10 establish
some sort of basis for constructive buSi.
ness. but not far enough as yet to dis.
close the actual time for definite busi.
ness revival. The tendency. therefore,
was to wait and watch events.
Developments in Europe were Of
nature to stimulate interest in the pos.
Sibility Of adjusting the problem Of
German rcparations. Cabled advics
seemed to indicate that France and
Germany were getting nearer togethH
on the subject. involving potentialitis
/ in international trade which commando
instant attention on this side of the
Atlantic. The sentimental effect on
I French exchange was considerable
franc checks advancing close TO w
] cents against cents last week,
/ Marks naturally responded to the
! reparatiOns reports. and the other
/ continental rates were not far behind
although the Italian Ira tended to
drag.
Trade Journals Cheerful
The trade journals sounded note o.
optimism with respect to genera buS
! ness, although many unsatisfactory
! features still prevailed. Willie there
were numerous sharp contrasts in dii'
! fcrent trades and Industries, it was 70
be observed that gains outnumbcred
sctbacks. The most encouraging fea'
ture was that orders were beginning
to come In more freely from dstrio.
utors, with consequent Strengthening
OF prices in some instances.
According to both Dun and Brad.
street there was material reduction
in the number OF failures. There ""
little that was significant in the stee,
industry. A slightly better demand
was noted, with an occasional coonces,,
sion in price. The average price o.
eight principal steel products. compiled
by the Iron Age, was unchanged from
last week, standing at $84. So, again"
SG5. "a on December 81, and SIOeo
year ago. ,
Neither from jobberS nor from
manufacturing consumer obserysa
that journal, ''are orders coming ma
eating more than perfunctory hLIns ~,
,n,1i,o r.nl laynlonmenta on the prlV