The New York herald., 1921-07-15
FINANCIAL NEWS
AND COMMENT
Western Unions Sharp Decline
Features Dull Session of
Stock Market.

| All eACetQli6 uull stdlc Ol BUSINESS
was accompanied yesterday by weak
ening of the price list, some declines of
industrial shares extending from 2
points to more than points. Trading,
professional attacks on one issue after
another, the most pronounced result be-
ing sharp reaction OF Western Union.
1t looked as though the bears. who had
not done much with that stock during
all OF the June declines, had turned to 1t.
hoping TO find the shares vulnerable in
a day of sluggish transactions. Possibly
there was selling also in anticipation of
the company's quarterly statement This
report. to be issued to-day. shows that
reduction of expenses was consistent
with a falling off of it's gross receipts,
but the decline of the latter as compared
with that of the second quarter of 1920
was sufficient to bring about a con-
traction of more than AZ per cent. in
net income. The company's business is
usually an excellent barometer of gen.
eral business conditions throughout the
country.
!. General Electric was another usually
steady and only moderately active stock
to fall back, its decline being in excess
of points, and petroleum lost much of
the advantage gained in the market of
Wednesday. Steel common receded III
points and other steel company issues
were soft. The action of railroad stocks
was again indicative of meagre offer
ings, few displaying any tendency to
recede, while some more active ones
gained fractions. Although such mean
ingless markets as those Of this week
are hardly safe to base deductions on.
the position of the rails from day to day
has denoted a reluctance of short sellers
TO press them down or the presence of
buying orders so placed as to absorb
selling quickly. 1t is to be said that
constructive forces are in the making as
which forecast better conditions for
them before autumn. although the man.
ner in which the Treasury's effort to put
them in funds to the extent of $780,
100000 has not been determined. The
suggestion that the War Finance Cor
poration make use for railroad needs of
the $500, 900 fund placed at its dis
posal by Congressional action is one
which promises to receive attention in
Washington. as it would eliminate the
necessity for a fresh appropriation.
The fact that the Treasury is to re-
tire st32. 100000 of maturing certificates
to-day by means of money in hand
places somewhat different complexion
or the monetary outlook. as far as New
York is concerned, than was evident a
fortnight ago. Federal bank balances
have been drawn down heavily and
probably will continue to be reduced for
considerable time to come, process
which reduces for the time being funds
available for call loans. But the Treas
ury's ability to take up its paper as
due dates arrive without putting out
new short loans denotes an improving
state of Government finances which
cannot help but be encouraging to pro-
ponents of Federal economy and be-
levers in business betterment in the
next few months. Call money lent at
Ga per cent. again yesterday afternoon
after most of the days new loans and
renewals had been arranged for at
per cent.
Some buying of wheat for German
account was reported in the cash grain
market. which may or may not have
reflected the initial operation of new
credits negotiated in this country. Fur
ther reports of hot weather damage in
the wheat belt aided in an advance of
Q to Sla cents bushel in wheat fu-
lures. but corn, the prospects for which
suggest a record crop this year, receded
l cent to u cents a bushel
A little light was thrown on German
reparation plans through information
that much of the payment due before
the end Of August will be paid in dollars
in New York. The German Govern
ment evidently is arranging credits
here for that purpose as well as for the
purchase of grain. Sterling exchange
declined ~ cents to 3.63