The Washington herald., 1921-09-24
RAILS MOVE AHEAD /:
WHEN HlpUS1RIALS:
TURN IRREGULAR:
Disposal Of Equipment
Trust Certificates Are
Partly Responsible.
HIGHER NEAR CLOSE
Advances Approximate Point,
Fractional Gains Rule i'm
Industrial List.

NEW YORK. Sept. 2s.-Raiis were
the feature Of the days tradifg on
the stock exchange. being in good
demand throughout and remaining
nrm when industrisls displayed
hesitation and irregularity. The
good progress being made in dis
posing OF the Railroad Administrs-
lions equipment trust certificates
probably played a part in the mat
ter: At all events. the development
contributed to an Increased volume
Of business. Toward the close the
rails were higher by substantial
fractions, with the advances On q
few approximating q point Indus
trials were irregular. but frac-
tional gains were In the majority.
Call money was at per cent all
day.
The principal European ex-
changes were generally nrm on
fair volume Of business. Sterling
commanded y cent more at s3.7l.
and French francs were up az
points at 7.16h cents. after having
been as high as 7-2lh cents IN the
morning. German marke were
quiet around o.s2h cents. As
result OF recent unsettlements
among the continental exchanges
the prices of most Of the Central
European currencies have been re-
vised downward. One cent Will
now buy approximately z Hungar-
ian kroner or y Of the Austrian
variety. A cent will also buy SO
Polish marks. The feature OF the
Far Eastern department was an
other Il cent decline in Japanese
yen. the latest price being AK
cents.
Federal Reserve Rate.
Further large imports OF gold
and sizable reductions in both de-
posit and note liabilities have
brought the reverse ratio OF the
combined Federal Reserve bank
system up sharply TO ss.7 per cent
The gain is almost as marked as
that of the previous week and adds
confirmation to the view that liQui-
dation of frozen credits will con-
tinue to be a greater factor this
fall than any added demands for
credit as a result OF the modest
Improvement in business cond1-
tions. II must be remembered.
however, that the heavy govern
/ menG nnanc1al TRANSACTIONS center
ing around the tax date have had
an effect on the position. even
though there Is some difference OF
opinion among authorities as TO
just how large and important this
effort is. The next two weeks viii
furnish an answer TO the question.
Perhaps the most interesting fea-
lures OF the statement are tire
changes shown in the relations be-
tween several regional banks. The
New York bank gained very heav-
! lily and its reserve ratio would
stand at SOS per cent IL IL were
not for the rediscounting done for
other regional banks. For the FIRST
time since the wave OF imitation
resulted its elimination. New York
/ is the most strongly fortified bank
in the system. At the same time
the Chicago and Kansas City banks
sustained carp declines In ratio.
! Probably what has happened is
that the volume of Treasury GER
I tificates redeemed in the New
York district considerably exceeded
/ the amount Of taxes collected here.
1t is reassuring to note. mean
while. that the Improvement at
Dallas and Minneapolis has con-
tinued 81 that the former bank has
been able to pay of ss.0o0.000 OF
its borrowings from sister institu-
tions and the latter to make a
sir-ilar reduction amounting to So
nm ma