The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-23
FINANCIAL NEWS
AND COMMENT
Interest Continues to Centre
on Bond Market-Rail
Shares Lead Stocks.

The bond market continued yesterday
to be more active and interesting than
the stock market. but there was suffi-
cient buying OF railway shares to i'm
part a positive movement to prices The
advance, which went further than a
point among prominent rails during the
morning. reflected the same quiet un-
DERIVING strength which came into evil
dence two weeks ago, when methods for
increasing railroad cash were first dis
cussed at Washington. The force OF
that influence on speculative sentiment
has gradually been amplified by the be-
lief that as the crops move to market
in the next few weeks railroad earnings
will show improvement. 1t is not only
the actual freight tonnage vested in the
transfer of grain from field to market
that is being studied. but also the prom
lses that merchandise distribution will
show some betterment as the agricul-
tural communities receive money for
the products of the year.
Central and Southern Pacific gained
ground easily, accompanied by shares of
roads not in the dividend paying class.
AS the market was as highly profess
sional as at any previous time this sum-
mer, efforts to take quick profits cut
into top prices of the rails in the after
noon and practically all left off under
their best levels. Dealings in Industrial
shares were of decidedly small proper
tons. The movements of steel, rubber,
oil and miscellaneous stocks were too
casual trades. But there were few
weak spots. and the comment of broker
age offices showed that the short In
terest was wary Of increasing commit
ments in view of the easier money sit
uation and the expectation in some
quarters that lines of industry which
have been we'll liquidated will show
signs of genuine and fairly broad i'm
provement in the next few weeks
Call loans were renewed at 5ls per
cent. on the New York Stock Exchange,
and after the greater part OF the days
demand had been filled surplus offer
ings carried the quotation down to 5
per cent. with a lower quotation re-
ported outside. The differential of
y per cent. which had existed in COL
lateral time loans in favor of those Sc
cured by mixed collateral was re-
moved, all periods Of fixed term loans
being arranged at per cent. The de-
mand at that level appears to be light
and it would not be surprising if addi-
tional concessions came soon, although
the rate may be sustained by the posi-
ton of commercial paper quotations,
which fail as yet to show anything
more than tone OF softness which has
not been translated into quotable
change of rates since the Reserve Bank
rediscount charges were lowered.
The foreign exchanges scored further
gains in a dull market. Although no
explanation for the upturn of Euro
pean quotations was forthcoming, 1t
looks as though Canadian exchange Is
gradually being turned to the advan-
tage of Dominion centres by the move
ment of grain and expectations OF an
increase of the export flow as the new
crop comes into the market. Wheat
future prices in Chicago were about a
cent a bushel lower than they were
on Thursday. the result of increased
receipts at primary market points. Cot
ton quotations moved very little.