The New York herald., 1921-02-15
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Advance
vigorously in Market, In
dicating Caution.

stocks yesterday was accompanied by
a moderate improvement OF sentiment
in respect TO the credit and general
business outlook. Tne fact that deal
ings were still on a restricted scale In
dlcated that the financial community
remained cautious In it's attitude toward
the immediate future. Public buying OF
stocks was small. but the ease with
which sugar. steef and petroleum issues
were advanced disclosed reluctant Of
ferings when professional traders sought
to retire short contracts or to buy for
the long account. 1t was noticeable In
comment of tho Street that greater at
tention was being paid to constructive
elements In trade and In the field of
credit than at any time during the last
month, which was possibly the product
of the position OF the Federal Reserve
system at the end of last week The
more prominent stocks, with net gains
running from l point to more than
Gulf and West Indies. Baldwin Loco
motive, Crucible Steel, Mexican Petro-
leum, New York Central, Reading.
Studebaker and Steel common. Call
money lent at per cent. on the Stock
Exchange. with moderate amounts Of
fered outside at per cent
A feature of the Federal Reserve
statement was contained in tho reduc-
ton OF inter-bank borrowing which oc-
Cured last week. The New York bank
cut down its rediscounts of acceptances
with other institutions to the extent of
sS.900,co0. while the Atlanta, Minneapolis
and Dallas banks reduced their bor-
rowings at Boston, Philadelphia and
Cleveland. The inference is that bor-
rowers from member banks in the dis
tricts mentioned made progress in pay
ing off loans, and, concurrently, the
Reserve SYSTEMS circulation of Fed
100000, the amount outstanding at the
end OF the week being the smallest since
April 2 OF last year. The contrast of
last weeks results to those of a year
ton then expanded more than sS7. 900.
The process of loan reduction, how
ever, continues uneven and burdens OF
some centres were transferred to a
greater extent than in the week before
to others, the Cleveland institution
showing large Increase of bill hold
ings. An interesting situation exists 1T
Minneapolis. the reserve ratio of the
bank there receding 2.7 per cent. due,
evidently. to developments In that dis
trict growing out of the difficulties of
the Bank of North Dakota. The bank
ing and loan situation would be i'm
proved more rapidly if the agricultural
communities liquidated their products
at a faster rate, but the reserve sys-
tem's figures disclose some betterment
in this direction as time passes.
A marked alteration of the sugar
market had effect on the sugar COM
pany shares. although it remains to be
seen whether the extensive rise of raw
and refined sugar prices in the last
week is justified by the state of supply
and demand. The movement In Cuba
to have a committee handle the mar
keting of the new crop has acted to
cause Withholding of stocks ready fer
market; the unfortunate experience of
last autumn suggests that peril lies in
any effort TO restrict normal distribu-
ton at a time when Europe is round
ing into shape as a large producer Of
sugar.
The foreign exchanges we're firm un-
der moderate buying. Sterling sold as
high as 3.S9ls, the highest quotation
since last July. European rates were
generally higher at the close than on
last Friday, while Far Eastern rates
reflected in a slight reaction another
dip of nearly a penny an ounce in
silver at London. Grain quotations ran
parallel with stocks. early softncss be-
ing succeeded by considerable strength.
Wheat futures closed more than cents
higher Cotton was fairly steady. de-
spite the monthly ginning report. which
showed s66,27o bales used in January.
against 5e1, ,921 bales in January of last
year. The increase over December last
year. however, was more than 1900
bales.