The New York herald., 1921-03-19
FINANCIAL NEWS
AND COMMENT
Industrial Shares Gain, While
Rails Are Unsettled-P.R.R.
at Lowest in Years.


the stock market yesterday. causing ad-
ditional extensive gains in a number OF
Industrial issues which had been proni-
nent in the preceding session. There
was. however. considerable unsettlement
in particular parts of the railroad
group led by a decline of Pennsylvania
Railroad to the lowest level in more
than a generation. A late rally OF the
stocks which had acted most uncertainty
earlier in the trading period seemed 70
reflect the strength elsewhere. and for
this reason It was not possible TO deter
mine whether real or sentimental infiu-
ence was behind the easement of a few
standard shares Such volatile stocks
as Crucibic Steel. General Asphalt and
Mexican Petroleum We're bid upward
with rapidiiy in the forenoon and held
their Improvement in excellent fashion.
There were gains of a point or more
among automobile and rubber stocks
and number OF specialties. in which
offerings always become limited when
the price tone turns firm. displayed
strength all the way along.
The money market is clearly becom-
ing a real factor in the stock trading
situation adding to the discontinue OF
the lately confident bears as we'll rs
stimulating a little new buying for the
long account. Call loans were renewed
again at 7 per cent, but Information in
lending quarters indicated that the de-
mand at this level was more restricted
than before because OF knowledge
among borrowers that idle funds were
to be found in quantity outside the Of
ficial offering place on the Stock Ex-
change. Deposits OF tax money sent
to Government agencies on March is
and later are evidently expanding the
amount OF funds available for tempo
rary use. and progress in business de-
flation is constantly increasing the
liquid condition of loan accounts. Sub
stantial loans on call were reported at
S per cent. yesterday afternoon. and
Wall Street comment forecast close ex-
animation of to-day's bank statements
for signs of an improved position likely
to become more pronounced In the next
few weeks While the forces working
for monetary ease are undeniable in
some directions, there still remains a
vast amount OF frozen credit which
will continue in that state for some
time to come. This fact. disclosed in
the situation of banks In some sections
of the farming country and also in GER
tain major mercantile centres. needs
to be kept In mind constantly when
the outlook is studied; also all the evi-
dence points toward continued large
borrowing by the Government, which
may be expanded in case income and
excess profits tax receipts just re-
ceived are not UP to preliminary calcu-
lations.
The decision of many traders to re-
| tire commitments on the short side dur
ing the last two or three days Is indica-
tive of an altered sentiment toward
stock market values. But IL would be
rash to decide from such price improve
ment as has occurred that share quota
tons had begun to discount definite bet
terment In Industrial and transporta-
ton fields. Too much remains to be
dcne in the way of readJustment to per-
nit of a complete change Of front just
yet The steel trade. always fairly
true barometer Of underlying conditions,
is moving in the direction Of contrac-
ton, and, while the stock market Is not
wont TO wait for clearly visible altera-
ton Of business factors. genuine and
pi olonged movement in either direction
frequently has begun only after period
OF relative stability in manufacturing
and trade.
The foreign exchanges were again en-
liyened by an advance OF Italian rates,
at the same time that some of the other
European exchanges were heavy, French
exchange among them Doubtless short
covering has had much to do with the
weeks upturn Of lire. but 1t may be ar
gued as well that a movement Of funds
from London and New York to italian
cities has reached a scale where mar
ket no more active than that for lire
could be stimulated.