The New York herald., 1921-04-01
FINANCIAL NEWS
AND COMMENT
Stock Prices Fall on Bearish
News-RailrOad Outlook Af-
fects Sentiment.

The stock market setting was decided
ly favorable for transactions for the fall
OF prices yesterday morning, what with
the railroad situation headed for much
discussion at Washington, with money
in a position Of comparative stringency
for a few days and with the possibility
Of fresh military activity in Europe cen
tired about the effort of former Emperor
Charles 10 regain the throne of Hun
gary. Professional traders seized the
far as possible at the start Of business
and the later rallies were fitful and not
sufficient to overcome the initial handi-
cap. But it could not be seen that
tity, and the days business was almost
wholly comprised in the dealings OF in
dividuals who are ever ready to profit
by the events of the moment. With the
exception Of sharp reaction OF spe-
cial issue. United Drug whose decline
was comparable in its effect to the drop
CT International Harvester the day be-
FORE Industrial and railway shares were
devoid of feature. The lowest quota
tions We're generally established In the
first quarter hour. The character Of
trading, like that of preceding sessions
Of the week, indicated the growth OF a
new bear account OF considerable pro-
portions, process which sooner or later
is bound to contribute to a broad recov-
cry when a development of favorable
import comes forth. Call money again
moved up to per cent. from 6ia per
cent, with more loans at the higher
charge than on the day before. To-
days disbursement of interest and divi-
dend funds will be substantial, a fact
accounting for part Of the stiff ten
dency of loans.
The days news was of a sort to make
the outlook in matters of primary inter-
est more uncertain than before, if that
We're possible. A conference between
President Harding and the heads of the
Interstate Commerce Commission and
as a necessary preliminary to Govern
ment assistance In revising wage sched-
ules and in the ultimate reduction of
freight rates. But the meeting was also
considered as step in procedure which
necessarily entails the consumption of
time before a practical programme is
completed. Inasmuch as financial circles
have been driven to lose hope in rapid
and voluntary settlement Of wage con-
troversies between railway employers
and workers, the present mood Is to
Of the carriers to get costs down than
from thoughts of a broad scheme to come
later. The February returns OF the
major railway systems show clearly that
operating expenses have been lowered
from the aggregate Of the same month
OF last year. This has been accom-
plished by cutting working forces, let
ting down on maintenance and through
the fact that traffic movements have de-
clined. The financial products, as well
as the political results. Of the new un-
settlement In central Europe cannot be
visualized. A favorable event of the day
touching on the money and the invest
ment markets was the sale of $20, ,000, 900
Of Vacuum Oil per cent. bonds In
few hours. An easement of money rates
and supplies in the next few weeks Is
likely to bring forth considerable new
financing.
The Bank OF England's weekly state
ment showed why talk OF a lower dis
count rate has had slight basis. The
British Governments fiscal year closed
yesterday, which helped to account for
an expansion in the last week of more
than s6O,OOo.oOO in loans and deposits.
The reserve ratio receded from 1889 to
1927 per cent. This weeks rate Is per
cent, lower than 1t was a year ago.
The foreign exchanges we're inclined
lower, movements being slight. Cotton
was easy, but grain prices were firm.