The New York herald., 1921-11-11
FINANCIAL NEWS
AID COMMENT
Stock Prices Hold Against
Profit Taking-Turnover
Is Heavy.

Dealings in stocks yesterday followed
lines made conventional by other pre-
holiday markets. great deal OF profit
taking being completed in petroleum,
steel and other industrial issues. the adj
vance OF which have been extensive this
week. The fact that prices held UP with
great deal Of vigor in the face OF
realizing sales--the turnover was well
In excess OF three-qua rters OF a million
shares-spolSe we'll for the interest
which has been aroused in speculative
circles. by tke spectacle of improving
quotations Of late. Such volatile issues
as Cruchle Steel Houston Oil and Texas
and Pacific receded more than point.
but the net declines were more than
oHerghadowed by the strength of stand
( ard oil of New Jersey, Corn Products,
Union Bag and Paper and several other
specialties. The names here mentioned
Indicate that the most prominent price
chr nges occurred in stocks ranked as
speculative favorites or those that car
rled some special reason for their move
ments. The advance of ~ points in
Standard oil OF New Jersey bespoke in
creased attention which the Street has
paid this week TO the strong position at
tanned Dy producing and refining COM
panies that were able to lay in large
stocks OF crude petroleum before the au-
tumn price enhancement began. In addi-
tion TO the feature supplied by oil COM
pany issues on the New York Stock
Exchange and in the over the counter
market the outstanding fact was the
renewed strength of preferred stocks.
Some advanced from to points
The days news bearing on securities
was scanty. The report of the United
States steel Corporations bookings.
showing deduction of 273,S41 tons in
forward business during October. sup
! piled moro OF a commentary on mill ac-
tivity than it did on the state of buying.
The cuts of prices late in the summer
were intended to stimulate purcha ses to
/ the end that operations of the plants
, might be increased. Results were suffi-
/
activity from So to 30 per cent. of ca
| pacity on the avers sc. but it is evident
that while orders were worked up as
! rapidly as specifications were received
new business tapered off in October. the
outcome being a fall of untitled contracts
at the end of tho month.
I The reserve systems usual procedure
of reporting a new high percentage of
cash to deposit and note liabilities every
week was followed again yesterday, the
, Increase for the last week being the
unusually large figure of IA per cent
The gain resulted from rise OF s15.-
100000 in reserves, decline of ST.. 800. 900
/ in deposits and a contraction of $12,-
G00,c0o in circulating reserve notes. 1t
was evident that outside centres had
drawn heavily on New York, as the
local Reserve Bank lost more than s44,-
100000 through operations OF the gold
settlement fund. while rediscounts ex-
panded $3S,000,00Q. Presumably the fact
that New YorlS's rediscount rate is
half per cent under the average of all
the banks has attracted borrowers here.
AS the New York institutions clrculat-
ing notes increased about 81 100000 and
its deposits declined no more than
S2.7oO,0oo, 1t was not surprising that the
reserve ratio fell 3.2 per cent to 1913
per cent.
Cotton continued its retreat, all future
options being quoted under II cents a
pound at the closing. which meant that
two or three had declined cents q
pound from the maximum levels
reached early in September.
In the foreign exchanges there was
little of interest. marks again falling
back and sterling displaying unsteadi-
ness. An improved Bank of England
statement had no apparent influence on
sterling, which was not surprising I'm
view of the probability that the ap-
proach of the year end will bring set
tlement preparations of scope to make
the reserve ratio fluctuate broadly. In
the last week it advanced from 1873 per
cent. to 1873 per cent. due mainly to a
fall of G19,go,000 in deposits.