The New York herald., 1921-04-16
FINANCIAL NEWS
AND COMMENT
Stocks, Led by Rails, Advance
on Labor Board Ruling
British News a Factor.

The financial markets response yes
terday to overnight developments or
great Importance was a sharp and sus-
tanned advance Of stocks, a substantial
Improvement Of cotton quotations, mod
crate recovery Or grain and a continua-
ton Of Thursdays firm tone IN the for
egn exchanges. The upturn Of stocks
was all the more emphatic when consid-
cred against the background or de-
pressed sentiment or Thursday, when
action by the Railroad Labor Board still
seemed remote. But the constructive
step taken by the board was clearly
recognized as a factor of much deeper
significance than as a mere influence to
hasten the retirement of speculative con-
tracts for the fall Of prices. The abro-
cation of national wage agreements
stands not as a cure all for railway ills.
but as measure which nortends new
wage arrangements of sort to reduce
operating costs. The roads have been
freed from irksome restrictions against
free negotiations between separate lines
lined by the board at the same time
empower organizations of employees to
have their negotiations with employers
over wages handled by representatives
of a particular carrier or otherwise"
The boards ruling contains concessions
to management and employees and pre-
sumably gives opportunity for readjust-
ments Of the basic wage schedules, sep
arated from the many details and addi-
tions comprised In the national agree
ments.
Railroad stocks led in the advance
which began with initial bulges OF
point to points The short account
retired in much confusion, and before
midday gains of " points and more
were recorded by Chesapeake and Ohio,
Great Northern preferred. New York
Central, Reading and others. The in
dustrial list profited as well. and while
the most urgent short covering seemed
to have been completed in the first two
hours Of trading there was later so per-
sIstent demand that prices continued
to rise until the close. Net advances IN
excess of points were spread broadly
through the list at the end of the ses-
sion.
The supplementary effect Of British
strike developments was evident from
the start of business In regard to the
crumbling or what threatened to be
paralyzing walkout. the news reaching
the financial district during the day was
not altogether clear in application to
future events overseas. 1t appeared
likely that the coal miners. bereft Of
the support OF other organized workers.
would conclude shortly negotiations with
employers and return to work. but that
result was not definitely forecast during
business hours. Sterling exchange rose
. cents to the pound over Thursdays
final rate, with moderate fluctuations
after the first flush of interest in the
market died out The Continental rates,
on the other hand, moved indfferently,
and there were reactions elsewhere, par
ticularly in the rate on Chile. which dis
closed weakness.
Naturally the Street was gratified
that the Railroad Labor Board had
acted with greater speed than seemed
probable few days ago. The deadlock
has been broken: the field lies open to
definite action over wages on particular
roads. and az events usually move swift
" in the labor field once line OF pro-
ccdure Is arrived at during periods OF
controversy it is expected that before
July / the railroads viii be able to see
their way clear through some difficult
ties heretofore perplexing. The feeling
persists in railroad and shipping circles
that soon freight rate reduction viii be
the subject of active negotiation. coupled,
perhaps with direct movements for wage
cuts But the stock market has not been
freed Of all its repressive forces by the
labor changes at home and abroad. A
reduction OF prices for one or two steel
products, let alone by the Steel Corpora
ton in its recent announcement indi-
Gated yesterday that further adjustments
In quotations were likely to come later.
And money rates remained firm, the call
rate staying at Z per cent.