Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-07-22
OUTS IN DISCOUNT RATES
CAUSES ACTIVE TRADING
Market Opens Strong, but Pressure
From Professionals Brings
Slump I'm Sales.
DEMAND FOR MONEY LIGHT
Despite Action OF Federal Reserve
Banks, Finances Remain High,
Owing to Frozen Crcdits-SOitlI-
crn Pacific Earnings Decrease.


NEW YORK. July 2I.-With the
London cables received bcCor. the
opcnin.; OF tn. stock exchange today.
stating that the BANS of England has
reduced its discount rate from . per
,ent To -. and the overnight news
mat the Federal rcgcrV. banks at
sun francisco, Boston. Philadelphia
nd Ncw York had cut their rates
from Ia : Il per cent. Wall street
expected higher prices for stocks to-
p1y win trading active. But 1t was
disappointed. Prices opened lnwcr.
'hcn after some selling pressure from
professionals trading became very
pulct.
None. Demand Light.
on call money tho renewal rate
Mas . IL per cent dcsp!t" thu GOV
"inmcuts withdrawal from banks
h'rc OF $iLcpD.uoo However. the
demand FOR ho'l' call ana time money
Mas Hight WaI Stree, expects time
money rates L" 80 lower as Il result
II tli" lowering Of rcdlscouut rates.
~ also expects advances in Liberty
and Victory tonHs and In other in
vc.tinent securities that VIII make
Tho income return conform To tn.
lower rodiscouut rates
.0l''N'. nv s'lltt OF 1ilp f'lFitl
reserve banks in LOWERING. their re-
discount rates money renains hiEh
n"IuE SO frozen credits. and ia some
banking quarters. both here nnd az,
i.pudviL IL ~ felt that the low.rin.
~ rates Was dU" mainly 10 pressure
~ rh'dp IurncE agitation. AZ proof
MAJ money vs. high. today the Aras
'p"d"r Company, which has lc.ii very
prosperous iH recent !oars. made Il
runlil Offering col Si,uuu.puU nftc"u-
}aar L. per cent hOnGs at =" -
"r "herc the income return Was i:
per sent That means OF course. that
'h..ualnE the commission paid to
HhnHofs for handling tn" offering ;hc
.n'h,S cost The company 9 pof cent
"r more. II "hs r.is.I TO nay on
interest beariu. noatlur debts
hH" reason FOR the lower prices re
pottet III the s'och market during
ln' carry trHdiuE WAS the overnight
5isu" quarter earnings statement O.,
The E,puJl'c Iron and Si.e! Company.
There was an operating deficit for
fhe thfc. months O. SiOs. 600. against
nci earnings Tor the same period Of
last year % '27H3.pv0 and a deficit
after preferred dividends OF 81
r'' aE"inai 'un slipius last year
"t tI4lS,o00 For TIA. sx months
'ncro was an operating deficit Of y3s. =
600 against net earnings for tho same
period last year OF s5,IiG.OcC. and a
deficit after dividends of S@.lui.VGU
against Ihst years surplus over and
above dividends on both che pre-
!c'rGG ana common stOck Of s2.a07 900.
The common dividend was recently
passed
To Issue statement.
" Was learned today that next
week iho l:udicott johnson Company
viii issue a favorable earnings state
mont
Rock Island officials recommended
,p the board OF directors OF ,hcir com
made ln their pay Tho recommends
zion was t,vorably acted upon
southern Pacific, the FRS, Of the bi;
railroads to report June earnings.
hpws gross OF 1000, Il decrease
compared with last year of {l,22l UUc,
md net operating incQms 0C S3.lsu.-
800, an iucrca4c uf Ss63, 1000 That
hows somebody is getting down to
Aork. rui tn" SIX months gross Was
Si3u.@iS 600. au increase @! SiGS1.oou,
ind operating income WAS &l3.359, 900.
au increase Of Si,6G2, 600. southern
rtcinc announced today a number OF
.l - fHlS Oh ~ 81 iGtlS anu tsill
ued goods for Eastern markets. That
90 compete Win the coast-to-coas
rcamshipS that have been cutting
into the compauys business
TWO stock Exchange seats sold to-
d1y a, >sO,ono. st new iow record for
tn. year. Last week there was a
sale az $4,000.
John y WHY'S stated today that
bus company mad sl0.0OOO0O cash and
nNcd the banks S2O.OoO.O0O. part OF
which would be paid of on August
tie said his company was finishing
'H" best month Of t.c year, adding {:
Wilys overland has SO greatly
frengthoncd it's financial position
mat We may ,ruthfully say that We
lre out Of the woods and able 10 face
ans storm that may blow"
statements have been made time
and again recently that banks
throughout the country were making
,sscs la handling commercial paper
r.rurcs NOW available after a careful
Investigation show that between
lauUary /. 1920. and July !. 1921, the
'u,al amount OF open market com
mcrcial paper sold through note
brokers was $1,000. 100000 In hand
Iinu this business the loss Of the
banks was exactly Uni7 per cent OF
the iotal Iand that in time may be re-
Gurod. whereas claims have been
made that the loss Of the banks would
run as high as 20 per cent. This show
IN. is remarkable when ii Is realized
TINT during the period named the
economic and financial reimbursement
1, igtI