The New York herald., 1921-04-24
FINANCIAL NEWS
AND COMMENT
Close Of Week Shows Increase
Of Public Participation
in Stock Market

Speculative conditions IN tho stock
market ended the week decidedly differ
ent from what they were on Monday
morning. It required yesterday only
reawakened interest in railroad shares
to complete the disorganization OF the
short interest In all departments Of the
market. The substantial breadth and
sustained strength OF industrial and rail-
issues. moreover. appeared IN the light
OF brokerage Office comment to reflect
public participation on the buying side
to a degree greater than had been wit
messed for considerable time. 1t was
natural that such should be the case.
as the market had been well advertised
for five days through the buoyancy of
OIL and motor stocks.
AS far as genuine economic factors
played a part in the rise OF point TO
3 points In such stocks as Baltimore
and Ohio. Chesapeake and Ohio, Rock
Island. Great Northern preferred. North
ern Pacific, Reading and others. they
were comprised in news OF continued
earnest consideration OF the railroad
problem by the Administration. Strange
10 say. the stock market Is able 70 find
constructive information in projected
plans for reducing freight rates instead
or raising them. because Of general real
Ization through study OF monthly income
figures that business in times of rather
general depression is harmed by extraor-
dinarily high carrying charges for the
movement OF goods and materials. Fur
therr1ore. the financial community is be-
coming convinced that any reduction OF
rates win be accompanied. perhaps pre-
ceded. by a lowering OF burdensome
wages by the Railroad Labor Board are
expected very shortly after all argu-
ment is in hand in Chicago as the re-
suit OF the current hearings on projected
wage cuts.
Dispatches received yesterday morn
ing which recorded easier rates for com
mercial paper discounts and collateral
loans in the Chicago district strength
ened belief held in some local banking
quarters that money and credit were in
process OF more rapid relaxation than
they were in March and February. But
no infallible indication has appeared to
show that the call loan rate viii not
continue to denote heavy ebb and flow
Of available funds In New York for sew
eral weeks. The New York Clearing
House banks reported in their statement
OF actual condition as OF Friday that
loans had declined Sos, ,s30. 600 and de-
mand deposits s42.55s.0oo during the
week The relation disclosed between
the movement OF loans and deposits was
about normal. suggesting that liquida-
ton of customers borrowings had not,
as on several preceding weeks. been sup
plemented in its effect on deposits by
heavy Withdrawals by interior banks
Sterling exchange gained more than
cent to the pound in early dealings.
The news OF the day indicated that the
German Government finally was bend
ing TO the allied pressure In respect to
the reparations situation Although the
situation abroad has been ignored by
the security market, in 50 far as surface
signs have indicated. 1t IS evident to
every one interested ia the country's
foreign trade that a settlement OF the
reparation claims would be OF great Inn
portance.