The Washington herald., 1921-07-10
SHORT COVERINGS
BRING NET GAINS
|ATMARKET'SCLOSE
Sugars and Oils Supply
Feature with Early
Weakness.
[STERLING is OFF
Lowest Since January at
| S3.661a, Clearing House Re-
serve Surplus Gains.

NEW YORK, July s.-with trad
ing moderately active, weakness
continued during the first hour IN
the stock exchange. Covering there
knpon gained the upper hand and the
early l0sse were wiped out and ap-
preciable gains substituted. During
the weak phase sugar and oil stock
were the features, while rails led
IN the recovery. Toward the close
1gain among the latter amounted
to a point or better, while indus
trials showed many fractional ad-
vances and a few running from 1
to J points. Sterling sold OF TO d
new low since January of s3.eeh.
trading here being very light and
the weakness being due to a de-
rand for dollars in London. Cot
ton and wheat showed little change,
Reserve Surplus.
An increase of s2S.sOO.ooO in the
surplus reserve of the clearing
Ihouse banks brings the total for
this item to 34,l0O.000. Loans
meanwhile are lower by s74.soo.oo0
and deposits how shrinkage Of
tsl1O. zoo. 900 almost the whole OF
kwhich occurred in the demand de-
posits items. Reserve deposits at
the reserve bonk are Ss,ooo.Ooo
greater and government deposits
are s1s,OOO.OOO less
Uncertainty and irregularity con-
ltinue to characterize the financial
markets After opening the week
with an unusually dull day. the
stock market produced a very smart
rally based on short covering. which
melted away rapidly in the face of
profit-taking. The circumstances
offered insufficient grounds for any
conclusion as to whether the incl
dent marked the beginning of bull
movement, or even the end OF i
bear movement and "a wait-and-sce
attitude is all that is justified.
Trading in cotton and wheat was
also inconclusive these markets
backing and filling with day-to-day
swings in sentiment. The foreign
exchanges meanwhile continued in
active and with the tone heavy.
Money Market CIePr-Cut.
The one market giving a clear
cut and reasonable account of itself
was that for money. As had been
passing of the time OF
from the strinEency occasioned by
the transactions centering around
that date. call money dropping back
promptly and a vigorous reinvest-
Irnent demand being in evidence as
witness the consistent strength of
the bond market
The July l interruption to the
steady progress being made in re-
ducins credit strain was of an in
cidental character and the real test
Gf the money markets condition
will develop as the crop moving
season set IN. Presumably the fall
in the demands OF the West will alb
sorb part of the credit resources
now availble. This is, however. by
TO means certain as a considerable
mart of the farmers call cash will
go into paying off loans left over
from last year, or, in other words,
into thawing out frozen credits.
lust how the unusual set of factors
affecting this years credit situa-
tion will work is one of the inter-
esting problems the unfolding CT
which will be interesting to watch
during the coming six months.
With regard to the industrial out
look. it continues to be that long
range developments are favorable,
but that signs of a quick and
sharp revival are lacking. Normal
notice of another cut in steel prices
is important chiefly for the further
reduction in wages carried with II,
kince the trade does not hope for a |
Real resumption of buying at this
tfrne and is concerned more with
getting production costs back to a |
point where attractive prices can
be quoted when the time for re-
yival or demand is ripe. High pro-
duction costs are now perhaps the 1
chief retarding factor in the read |
justment and progress in their re-
duction is distinctly hopeful
omen. That the cut in railway
wages has come into effect and thar
the employees are still at work is
another reassuring feature Of the
situation as is the reaching of 1t
tentative agreement between the
railroads and the government
whereby the roads will have a large
amount of fresh cash placed at their
disposal during the next six months
Current commercial business, how
ever, continues slow and spotty and
little else reasonably can be ex-
,,ected at this season of the year
this sfnRe of the huaineEs |