The New York herald., 1921-05-27
FINANCIAL NEWS
AND COMMENT
Active Stocks Gain-Reserve
Ratio Up-May Wheat Off
II 3-4 Cents.

days stock market were mostly OF a
constructive nature and resulted in
arousing a flow Of short covering orders.
The prices OF active shares ended the
session with advances OF good sized frac-
tions to more than points. The only
which appeared to be made the mark
for bear drives while buying orders
were filed elsewhere. That sort OF
smoke screen for the more important
business OF the day was stirred up by
pressure against Studebaker. United
States Rubber and one or two tobaccos
and sugars. The market was again
largely in the hands of professional
traders. although there seemed 10 be
some nibbling at rails by buyers i'm
pressed by April earnings and their
suggestion that railroad incomes In later
months might be considerably more sat
months
The results OF railroad operations last
month, as displayed in reports of sew
eral prominent companies. supplied the
days most cheerful development. even
allowing for the fact that the roads
were troubled by a strike In April OF
last year which affected comparisons.
Supplementing the effect on sentiment
Of the Pennsylvania gain Of nearly
Sc, 10000 in gross and $12,700.000 ex-
pansion in net above the heavy deficit
or April. 1920. were the Southern Pa
cific's upturn Of $4.532,000 In gross and
its gain of s3.679.o00 In net and the
remarkable showing OF the Baltimore
and Ohio, which extended an increase
Of $4,000 In gross revenue to a growth
Of s2,277,o0o in net operating revenue.
The last named road made 1t clear that
savings in operating costs had been
decidedly effective, from which the
Street was moved to expect that the
pending wage cuts would have impor-
tant influence on profits during the sum-
mer and autumn. when traffic might be
expected to become heavier. An inter-
helped carry Great Northern preferred
and Northern Pacific upward with vigor,
was the declaration of per cent
dividend on the Burlington's stock. AL
though 1t was specified as a dividend"
and no intimation as to whether or not
1t indicated a settled policy was made,
the stock market assumed that the stock
was virtually on a 10 per cent. basis.
shares which recently were increased
through a stock dividend would more
than cover the interest charges entailed
in the s215. 900 900 bonds sold few
weeks ago. the interest to be provided
jointly by the Great Northern and
the Northern Pacific Those control
| ing roads own nearly all the Bur-
ington stock, and thus will be the chief
benefciaries from dividends.
A spectacular event OF the day was a
tremendous fall of May wheat prices
in Chicago. amounting to 11az cents a
bushel AS more than 10 cents of the
recession was marked OH IN INITIAL
| transactions. II was plain that the re-
| lation of supplies to demand had un-
dergone a great change overnight. Evil
| IDENTIFY, what amounted to a sort OF cor
ner. through scarcity OF supplies for
delivery this month, was broken sud
denly by heavy receipts OF grain. and
news dispatches told of shipments Of
| fered from many localities as the re-
suit of the rise OF more than co cents
bushel from the minimum price OF
April to the maximum of s1.s5 on
| Wednesday.
Call money advanced from per cent.
to ~ per cent. the latter being the
highest rate since February s, but the
movement was impelled by local con-
ditions. comprised in end of the month
preparations and large demands for
funds In connection with current dis
tribution of securities. The Reserve
statements for the week showed con-
tinued Improvement, an increase of s14.-
10000 in gold reserve. fall Of more
than 100000 in deposits and a con-
traction of ss20oooo0 in Reserve notes
helping to carry the Reserve system's s
reserve ratio from 5s.8 per cent. to 81. G
per cent. The ratio OF cash to deposit
and note liabilities OF the New York
Reserve Bank gained IL per cent to
| 5s nor cent