The Washington herald., 1921-07-30
RAISARE STRONGaIg
BUT NDUSTRIAISs
DROP OFF Weakly
Motor Stocks Are Heavy.,,.
And Record Sharp
Declines.
TIME MONEY AT 5A% Il.
Exchange Quotations Sag
With Little Buying "#1
Demand. 49,

NEW YORK, July 29.-With rails
showing strength during the morn
ing, industrials developed weakness.
from the opening of the exchatge. %
The volume Of trading. meanwhile,
was smaller than on yesterday.
Motor stocks were again heavy and :
fairly sharp declines were record
ed in a number of specialties. In
the afternoon rails showed signs OF
profit taking, and toward the close
were almost unchanged. Losses
predominated among the indus
trials Bonds continued to be In
demand, and foreign issues in par
ticular were bid for. Call money
ruled at az per cent all day. and
time money was reported to be
available at 5% per cent
Absence Of buying In the ex-
change market was again reflected
in sagging quotations. Thus ster-
ling, which closed at s3.57& yes
terday. was offered here after
We tkness in London on a bass
equivalent TO s355lk. Subsequently
the price recovered partially, now
ing up ! cent. French francs mean.
while sold at a relatively greater
loss. being of 1914 points at 7.55
cents. This occurred, Furthermore,
at a time when the demand for
French bonds on the stock exchange
was unusually active. Most Of the
other European currencles moved 70
lower levels. German marks losing
three-fourths OF a point at. L2S-
Italian lire served as an exception.
recovering a small part Of recent
heavy losses.
oped in the wheat market. Private
crop reports were bullish and made
for higher prices. but existing
heavy receipts from the new crOD
acted as a drag on the speculative
element. In the afternoon the July
delivery broke cents TO SIe2 on
the maturing of options and clos
ing OF contracts. and this affected
the other futures. Consequently.
September. after having been as
high as s1.2e%, showed a loss Of
l% cents at s124 The cotton mar
ket was without feature. covering
of shorts bringing a 10 per cent
gain at late price at 1907 cents,
Continued influx OF gold on a
great scale and contraction in the
outstanding volume OF Federal re-
serve notes have brought the ratio
Of the combined FeSeral reserve
system 10 3 new high for the pres
ent movement Of s34 per cent. As
between the several regional banks.
the past weeks showing is evenly
/ balanced. six Increasing their own
inherent reserve strength and six
showing a weakening OF the post
tion. Primarily, Il is the banks IN
/ the agricultural a sections which are
| feeling the increased strain. and
I those az Richmond. Minneapolis and
Z Dallas were forced to increase their
borrowings from the banks at New
I York. Boston and Cleveland. while
1 the Atlantic institution called for
such accommodation for the drsr
time since February IL. -.-
The position OF the New York
bank continues to grow stronger.
and II its loans to other reserve
banks were included in its own re-
serve. its ratio would stand at 81
per cent. On a similar basis the
! ratio Of the Dallas bank would ne
only l79 per cent. The great gains
in good holdings by the Eastern
banks. and the reductions in liza
biIities by those Institutions. con-
tinue. however. 20 more than Offset
the greater needs ocCasioned in the
West and South by the new crops.