The New York herald., 1921-03-18
FINANCIAL NEWS
AND COMMENT
Stock Market Weakens Again,
but Tone Is Fairly Steady
at Close.

The stock market absorbed yesterday
a great deal OF selling and although the
list wabbled considerably at times and
numerous speculative issues We're weak,
the tone was one OF fair steadiness at
the close. The character OF dealings
were what might be expected in a period
Hike the present, when a rather persist
ent decline had been interrupted by one
day OF strong recovery. The influences
which had been working for the fall OF
prices during the first half OF the month
were still present. Wednesdays up
turn had obviously been mainly the
product OF realizing of profits from
earlier short sales, and traders who
had retired temporarily from the market
were ready to reenter it on the short
side when the incentive came. It APP
peared yesterday In the receivership OF
CASTOR. Williams & Wigmore. although
that development did not come out OF a
clear sky. and In renewed unfavorable
discussion of the New Haven Railroad
A denial by the president OF that road
that q receivership for it was contem-
/ plated brought support into the market
but q sluggish buying power was evi-
dent throughout the day in the rail
| group as a whole. Tobacco stocks were
/ inclined lower at the same time that
some OF the automobile and allied issues
were rising. The weakness OF partic-
ular specialties could be ascribed to
bear pressure and the strength of sew
eral on shares was evidently the product
OF pool transactions
The action OF stocks meant little as
far as the major aspects OF the indus
trial and transportation situations are
concerned. It remains for the railway
wage question TO be settled and for GER
tain phases of the foreign political sit
uadon to become stabilized before the
market will have a really constructive
basis for rebuilding But 1t is not be-
yond the bounds OF possibility that be-
fore these matters are ready TO be con-
sidered, satisfactory, without qualifica-
ton, measures under discussion within
the new Administration will have effect
on the future plans of industry. Already
enough has appeared in Washington to
show that President Harding and his
associates are devoting careful thought
to taxation measures and foreign trade,
with the intention in respect to the lat
ter OF stimulating sales of American
goods. In connection with our COM
merce and plans to foster it attention
was directed yesterday TO the February
report on exports and imports. the out
ward movement of merchandise amount
ing to s4Ss.310.s42, being "a per cent.
less than in the same month of last year
and showing an even greater shrinlSage
compared with the exports of January
OF this year. The aggregate OF exports
was the smallest in exactly two years.
Imports were less than half OF those OF
February. 1920. the value being s214,-
525,137. or course, declining prices had
considerable to do with the showing, but
indicated dwindling trade, with conse-
Quent application TO prospects for NOV
ing our accumulated stocks Of grain,
cotton and finished materials.
Retention OF the old discount rate BY
the Bank of England, shown in the
weekly statement, rendered less potent
the belief expressed in some quarters
here that the reserve banks would soon
begin to let down their charges Tie
British banks circulation is still sub
stantially higher than il vas a year ago
and the reserve ratio Of IA 4-5 per cent.
Is about per cent lower. which Is no
more OF an argument In behalf of cheap
money just now than is the known con-
dition Of loans on merchandise in this
country.
Call money was per cent. for most
OF the days borrowings, although its
rate again eased 10 per cent. on the
New York Stock Exchange. The feature
Of tho days financial markets was a
sharp rise OF Italian exchange, partly
in response TO statement by the Con-
sui General here, which noted an i'm
provement Of the budget. Sterling and
francs were steady