The New York herald., 1921-05-04
FINANCIAL NEWS
AND COMMENT
Steel Corporation Wage Cut OF
Far Reaching Import
Stocks Irregular.

Inc tNNuk bAMt~
ness yesterday was the reduction OF
wages by the United States Steel Cor
poration 70 the extent OF about 20 per
cent If the mills were running at the
rate of last January so substantial
cut Of labor's return would amount.
roughly, to a saving OF sl20. 900. 900 to
s13o,000,0o0 during full year. perhaps
more than the minimum mentioned. IN
asmuch as the reduction is 70 be appor-
toned through many departments. But
the action of the corporations manage
ment has a much more important and
far reaching influence than to the ex-
tent 1t applies TO the employees OF the
organization itself The entire union
labor field has been pointing toward the
attitude of Judge Gary In support of
As the largest unit in the steel industry
has attempted all along through the
period of rising prices to make wages
conform to the expanding cost of living.
| 1t Is reasonable to assume that the cut
Is also measured in large part in terms
/ VI iANAib ScstG. Int SiSHllCdNCe Oh lDlS
4 is plain enough when applied to the
many plans now being pressed by en-
| ployers In all parts of the country to
get down that proportion of their costs
comprised in wages.
The security market was not in
| fiuenced by the Steel Corporations de-
cision. except to the extent that the i'm
preston prevailed throughout the day
that an announcement was coming. The
news did not become public until long
after the close Of the markets. What
went on in stocks was first fairly brisk
extension of the rising movement. fol-
lowed by considerable irregularity when
heavy realizing sales came into the mar
ket. While numerous issues were frac-
tionally higher at the close than they
were on Monday, most active Industrial
shares receded. some as much as 2
points. and several rails lost ground An
easing of call money from to sA per
cent in the afternoon had no effect on
transactions In stocks because the spread
between those quotations has become
the accepted level Of a practically sta
tionary money market The Street will
not be inclined to speak of rates as
easy until figures under per cent. ap-
pear again. Stocks disclosed little be-
side natural recession after a fort
night of rising quotations The passing
of the American Cotton OIL Company's
preferred stock dividend had slight in
huence on sentiment, the chief reflection
being in sharp decline Of the shares
directly affected.
| The stock market was far less inter-
esting than were the foreign exchanges.
On large demand sterling advanced to
a new high record for the year at 9.e7%
but 1t was the French rate which dis
played resiliency OF the sort to attract
attention. French francs rose through
cents for the first time since July 81
of last year, and there was a parallel
bulge of Belgian francs. The conven-
tional explanation for the upward swing
of the exchanges is, of course. the specu-
lative buying attracted by hopes of an
early settlement of the reparations prob
lem. At the same time. it is altogether
probable that real improvement of the
trade position OF England. France, Bel
gium and other European countries and
considerable success in handling national
budgets are bearing favorable impress
on the exchanges.
Wncat futures advanced with as much
vigor as the short account was reduced.
the May contract rising cents and July
3 cents a bushel. In cotton, however.
prices returned to the sluggish. drifting
position they occupied for nearly three
weeks preceding the upturns of Monday
and lest Saturday.