The New York herald., 1921-01-30
FINANCIAL NEWS
AND COMMENT
Quiet Strength Marks Stock
Market, With Specialties
in Lead.

Quiet strength marked the stock mar
ket yesterday, the final price list con-
tanning numerous advances OF l point
70 points. It was again the case.
however, that speclalties occupied the
forefront of business, and the moro ex-
tensive upturns occurred IN issues which
had been relatively inactive during the
last two weeks. Rails failed to maintain
their Improvement OF Friday. and a
profit taking movement doubtless could
be ascribed to the effect on speculative
sentiment Of widening indications of a
sharp controversy between railway man
ayers and employees over the wage ques-
ton. A far sighted view of that matter
should not be considered bearish, what
ever may be the fluctuations of stocks,
for the pending effort OF the railroads
to put their side before the public prom
ises decision in the near future on one
OF the most important phases of trans
portation difficulties. II is significant
that railroad employers are mentioning
the possibility of lower freight rates in
case a way is found to tighten current
expenses in the way Of wages.
The tentative arrangement about Ger
man indemnity payments, reported by
cable from Paris. checked the decline Of
Fridays market in the foreign exchanges
and sent them forward again. The re-
covery naturally was more pronounced
in French francs than among other rates,
for what has happened in the meeting OF
allied commissioners is interpreted as
favorable to French aims. Francs rose
from 6.s6 cents to 7.24 cents. The Bel
gian rate was decidedly strong, but
marks were little changed, and there was
a rather soft tone in the exchanges OF
Switzerland, Holland and several Scandi-
navian markets.
The main feature OF the weekly bank
statements was the continued fall OF
deposits of institutions in the Clearing
House. The statement of actual condi-
ton showed that demand deposits were
sso.11s. 900 smaller than in the preced-
n,
more than s12,Ooo.00O. That move
ment was made especially signif-
cant by a decrease of S62,s00,000 in
loans, the figures indicating that to an
extent. more noticeable than in the pre-
ceding two weeks, borrowers were re-
leasing deposits in order to retire their
loans. Members of the Reserve Bank
rediscounted rather heavily. especially
on notes secured by commercial bills.
The expansion of redlscounts was $780,
200, 900. and that growth was some
what unusual in that It was accom-
panied by a decline of $13,611. 900 in
reserve carried with the Reserve Bank.
Frequently that reserve has grown
with rediscounts and excess reserves
have reflected its expansion. The excess
reserve last week declined s3,552.000.
Outside of the items of rediscounts
and bills bought, the latter showing a
fall of nearly s27,O00.o00, the Reserve
Banks report contained a few excep-
tional changes. Net deposits receded
$1,100.000 smaller than they were in
the preceding week. Circulation con-
tracted to the extent of s5.2s1 900.
bringing the aggregate outstanding
down to the lowest point since the week
of January 80. 1919. The decline of de-
posits and circulation aided in carrying
the ratio of cash to note and deposit
liabilities to 3s.s per cent. in contrast
to 3s.1 per cent. for the preceding week.