The New York herald., 1921-07-30
FINANCIAL NEWS
AND COMMENT
In an Irregular Stock Market
Some Rails Advance-Bond
Prices Gain.


sistence yesterday. certain railroad is
sues advancing while others drew back.
but there was no question about the
bond market tendency. That market
gained ground steadily through tho first
four hours Of trading and late profit
taking was not on scale large enough
to weaken its prices. The fact that
lenders OF short dated funds In collateral
loans let the rate down from per cent
to 5% per cent was of influences In
bonds and additional force was impaired
to the rising movement by tho Reserve
Banks weekly showing. A fall OF $4o,-
100000 In rediscounts Of the twelve re-
serve institutions continued the story Of
loan liquidation. which got under way
early In this year. The suggestion of
loan curtailment IL an Increase of idle
funds. which always has positive effect
ON prices and yields OF funded securi-
ties. Foreign government bonds. notably
French 71as and issues Of the Scandina-
Wan countries and cities, rose briskly
and new high points on the current
movement were recorded by the latest
Pennsylvania Great Northern. Northern
Pacific and Burlington issues. Bonds Of
several smaller railroads gained upwards
of a point.
In stocks strong and weak spots de-
noted profit taking near tho end Of a
week In which the rails had enjoyed a
fairly broad recovery and also a fair
amount Of purchases for the advance.
The many June reports Of railroads
which have appeared to date make
clear the fact that the effort to control
expenditures II having good results,
Declines Of gross revenue were to be
expected from the known shrinkage Of
traffic. as compared with that of June,
1920. The problem of the carriers dur
ing all of last spring was to handle
their operating and maintenance ac-
counts in way which would offset a
fall Of gross receipts The success
which they attained in most cases is
proved by the really strong returns of
many of the large systems and through
the general improvement Of others.
The roads which failed to build up their
net income in June were for the most
part those. the geographical position Of
which throws their major traffic into
the autumn and winter. A gain this
week worth special attention was in
Pennsylvania Railroad shares, which
sold on Monday at a6M and changed
hands yesterday at 49, Northern Pacific
gained points in yesterdays trading.
The bears had another inning IN the
industrial list. hammering three or four
specialties. and those tactics seemed ia
unsettle other stocks before the end Of
the day. United Fruit was forced down
3% points, Pierce Arrow preferred more
than 4 points and International Paper
moro than Q points. They recovered
somewhat before the close and It was
noted that as soon as pressure was
lifted from General Electric and the
railroad equipment issues, which had
been carried down sharply earlier in the
week. they rallied easily.
The days call money market saw no
moro offerings at 81 per cent. but a
AZ per cent quotation on Friday.
when loans are made to carry over the
week end, does not indicate hardening
Of the rate. 1t would be surprising II
a quotation under per cent prevailed
for any length Of time. as there is likely
to be substantial ebb and flow Of loan
able funds in New York so long as Gov
ernment deposits are subject to heavy
drafts and new financing is ready to
expand practically at the option of cor
porate, Government and municipal bor-
rowers.
Heavy deliveries of wheat on July
contracts in Chicago caused this months
price to fall cents bushel The other
options were not so much affected, how
ever. the September and December prices
receding respectively no more than IN
and ~ cents. The wheat market prom
ises to be interesting because Of fairly
wide divergence in crop estimates. A
decline Of more than cent In sterling
exchange seemed to indicate that grain
and cotton bills against exports were
hoovv