The New York herald., 1921-04-10
FINANCIAL NEWS
AND COMMENT
Short Covering and Evening Of
Commitments Featnre,Stock
Trading.

and the possibility of favorable devel
opments over the weekend in connec-
tion with the British labor situation
led TO moderate amount OF short COW
ering and evening of commitments in
yesterdays short session in the New
York Stock Exchange That movement
was not broad and was not sufficiently
extensive to have any real significance
as regarded the trend of the market but
it resulted in giving the list an appear
ance of strength which may prove to be
deceptive. The volume OF trading was
less than 200 900 SHARES, and lack OF
animation was the real Feature. Rail
stocks were under pressureuntil the last
few minutes of trading. ard the liquida-
ton in that department was taken In
some quarters to indicate anticipation Of
possible dividend reductions Northern
Pacific made a new low for the year at
731s, and Pennsylvania declined to the
new low record of 32S. Shortly after
the opening traders made numerous at
tempts to unsettle the list, but little vul-
nerability was found except in rails.
The only important domestic news de-
velopment was the announcement that
the United States Steel Corporations un-
filed orders had decreased more than
500. .009 tons, but such a failing on had
been fully anticipated. The market was
too close to the news that Independent
steel companies had raised prices 10
demonstrate the effects ofssuch action or
to indicate the consensus of opinion as
to whether such advances could be main
tanned. Returning from the West Judge
Gary was silent on the subject. and the
policy OF the United States Steel Cor
poration will not be enunciated until the.
latter part of this week. Cables from
London continued to bring pessimistic
reports regarding the British labor situ-
alton. but the appalling magnitude OF the
proposed strike suggests that the British
Government will do all that 1t can with
IN reason to avert the disaster. If un-
successful in negotiations. Wall Street
looks for a short duration OF the strike,
although it would take England long 70
recover from even weeks cessation OF
operations.
An adequate explanation for the
STRENGTHENING of call money rates In
the latter part OF last week was found
in the New York Clearing House bank
statement. which disclosed a deficit In
reserve amounting to $4,33l.320. Dur
ing the last fifteen months the appear
ance OF a deficit in that statement has
been followed generally Ly pearisn
movement in stocks despite the fact that
deficits can be avoided easily by mem
ber banks Of the Federal Reserve system
through the simple expedient of increas-
ing the line of rediscounts with the Fed
eral Reserve Bank. That deficit was
shown despite the falling off in required
reserve owing to the shrinkage In de-
posits. Demand deposits In the actuai
statement fell off sss.425. 900 and the in
crease of ss,5O5. 900 in time deposits had
little effect on reserve requirements
The actual reserve of member banks In
the local Federal Reserve Bank dropped
sac 196. 600 to s470.023,000. suggesting
that New York Clearing House banks
instead Of increasing their borrowings
had adopted the reverse course Of reduc-
ing their Indebtedness to the Federal in
stitution. Loans continue to contract.
but the shrinkage Of $24,115,000 was
overshadowed by the decrease in depos-
its. A comparison of the actual with
the average statement indicated that the
big changes in reserve and deposits oc-
Cured late on Thursday and on Friday.
Comment on the Federal Reserve state
ments viii be found in another column.
The gold movement to these shores
continued with the announcement of
Sc. 900, 900 additional on the way from
Sweden. The advance in sterling rates
of cent or more was accompanied by
a similar recovery in francs and lire.
Marks were a trihe lower. Both wheat
and cotton markets confined their price
movements to a narrow range.