The New York herald., 1921-04-30
.FINANCALNE
AND,COMMENT'
Frequent and Sudden Changes
in Stock Prices Reflect Ac-
tivities of Big Traders.

Dealings in yesterdays stock market
disclosed struggle of opposing specula-
tive forces. but 1t was not clear that the
heavy turnover and, rather sharp pric<
movements ndicated'anything else There
wer'e so many and abrupt variations, of
quotations among stocks classed in, the
samA groups that 1t was evident that
powerful trading interests were at work
on both sides of the market But Of
public buying less was heard than Ia
Eearlier days OF the week. Rubbers and
.several oils gained 2 to 4 points, coin
cident with a fall of more thani3 points
in Mexican Petroleum and weakness
at z per cent for all renewed and fresh
loansa the stiff tone evidently bearing
evidence to preparations for the require
.ments of corporations on May 1.
The addition of s1s.50O. 900 to the gold
reserve of the Reserve system during
the week ended on Wednesday brought
1928 addition to that fund, up to $685.
1885, 900. As deposits have receded and
circulation has been receding consistent
ly during,the last three months. it seems
that the reserve position. the strongest
now since August 80. 1913, foreshadows
a reduction of red.scount rates before
long. 1t is probable that the specula-
tive following of stocks are counting on
or four weeks but there is a possibility
that overeagerness in the market. dis
played through rapid upturns of prices
under,manipulation Of the obvious stort,
wouldabe a factor in delaying action by
Reserve Board officials. The constant
and extensive additions to the gold sup
ply stand as a temptation for new in
fiation If the opportunity were pre-
sented and the policy Of the central
banking authorities remains steadfast
to continue the defiation Of old loans and
strengthen the entire system before talk
ing any steps which would tend to on
courage anything except the orderly
use of credit in constructive business
enterprises. That there will be an
enlargement of security offerings in
the near future with consequent de-
mands on bank credit In process of dis
tributing bonds and notes is forecast by
the success of the great bond issue Of
the Burlington plan. The bankers in
terested were able to estimate yester-
day that the four days of the sale had
brought in applications for no less than
s240,000.0o0 bonds-the prescribed offer
ing is $3.50 1000, ,ooo-with the possibility
that complete data tonight will show
that $500. .0o0.0 could have been dis
posed Of through sale and exchanges for
outstanding Burlington joint 4 per cent.
bonds.
News affecting industry contained
yesterday the interesting report Of the
Bureau Of Mines that the March produc-
ton OF petroleum. totalling 4o.So2.0oo
barrels. established new high monthly
record for the country. which Is signi-
ficant at this time when the oil industry
hears much about the chances for a
slackened output in one or two Of the
great fields of the world. A gratifying
railroad statement was that Of the Penn
sylvania, showing that its net operating
income of s2.032.400 in March had over
come a very heavy deficit In March, 1920.
and an operating deficit in the three
months ended with March was. while
substantial still far more satisfactory
than the one for the corresponding 1920
period brought forth.