The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-05
FINANCIAL NEWS
AND COMMENT
Stock Improves on Short Gov
ering-0il REIMBURSEMENT
Progresses Rapidly.

Stocks were ruled again yesterday BY
the money situation, but in a fashion
different from what had been seen on
Wednesday and Thursday. There were
indications after the call loan renewals
were made at s per cent. that offerings
we're more nearly in line with the de-
nand than on the day before. which was
interpreted in market circles as sign
that high rates in New York were at
tracing funds from the interior.
Whether or not a real change had
occurred in the underlying situation, the
maintenance OF the s per cent rate, in
stead of an advance to 8 per cent had
influence in bringing about short cover
list was irregular at the close, the mar
Set tone was made firm by recoveries of
a poipt and more on stocks which had
been depressed more easily than others
in recent sessions. Once again the short
interest in Crucible Steel, whose lessons
have evidently not been fully learned
through similar experiences. found the
shares hard to get when wanted and a
premium on borrowed stock urged COW
ering operations. The strength of this
issue with Atlantic Gulf and West IN
dies. Reading. Royal Dutch and Mexican
Petroleum, supplied the trading feature
of the day.
1t Is clear that the petroleum industry.
while slow in following the industrial
procession during the last four months.
is now rapidly becoming readjusted to
new conditions. Reductions OF crude oil
prices have come so frequently IN the
last ten days that 1t has been rather
difficult to keep abreast of the market
for the several grades. For the second
time this week Pennsylvania crude was
reduced % cents barrel yesterday and
a fall to So barrel in the midcontinent
field brought the price TO q level 40 per
cent below the maximum quotation of
1920. The reflection OF the raw mate
rial movement has been made plain in
announced cuts OF refined oil prices all
over the country. The Importance of
the altered complexion of the petroleum
market as affecting industry which needs
oil and its products as fuel goes without
saying. There lies in the movement a
factor directing manufacturing costs
which reaches out to many kinds of
goods and to the transportation of those
| goods to market Naturally. there has
been some pressure upon the oil COM
pany shares since readjustment gath
cred force, but the active demand evil
denced for s12,00o.00o OF Tidewater Oil
Company notes yesterday indicated that
investors have an excellent opinion of
the business outlook for the well estab-
lished companies Another large oil
security issue is looked for In the near
future.
The cotton and grain markets expert
enced even more vigorous rallies than
did stocks. March cotton reached down
In the morning TO point slightly be-
low the minimum OF last December.
| WHICH NAldt Inc OPSioh ScAN AO"NA
than il had since 1915. The other
months held UP fairly well, and when
Liverpool buying appeared in consider
able volume all the options recovered to
figures above Thursdays last prices.
Reference to these purchases by cable
and a better feeling in British manu-
featuring circles Is made because OF re-
ported relief In England due to the Gov
ernmerft's decision to eliminate the ex-
/ cess profits tax. There is something to
think about in this. with application to
what Congress may do when taxation
schedules como up for consideration.
The foreign exchanges drifted In n
way that was not surprising in view Of
the excited and nervous markets OF the
last few days. Sterling at 3.S2A was
IL cents lower than on the day before,
but French and Belgian rates were
slightly firmer. In spite OF fall Of
III pence an ounce in the price Of sill
YER in London and a decline of as
cents here. the Far Eastern exchanges
we're steady.