The New York herald., 1921-08-10
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Gets Set
back-Bears Finish With
Partly Successful Drive.

Again yesterday IL was the foreign
exchanges which stood in the forefront
OF interest In the financial markets,
although the price movement was the
reverse of Mondays precipitate advance.
The record OF business during the last
two days seems to show that vast
unsettlement of the short account, for
reasons that are by no means clear, had
caused headlong bidding for sterling,
followed by natural slackening of de-
mand once the fever was over. The
basis of all the swift movements since
the middle of April has been in Ger
manys payments of reparations install
ments. and violent swings OF quotations.
especially for sterling. have shown that
spectators were led into difficult posi-
ttons by trying to guess when the Ger
man authorities were buying dollars.
The sterling rate at London supplied
the cue for yesterdays market tendency
at New York. A four cent drop to 3.64A
over there before business opened on this
side caused a sharp marking down OF
the initial quotation in New York trans
actions. and the final rate was " cents
to the pound lower than on Monday
afternoon. Francs and marks retreated.
the former receding % points to 1863.
The stock market was decidedly list
less until the last hour. price changes
being irregular and of slight account
except among the leading rails. Around
o'clock a beariah demonstration got
under way, and, as 80 frequently has
been the case In the last two months, It
found few buying orders In sight except
those placed to cover short sales. Rather
curiously. pressure centred upon the rail-
road equipment group. American Loco
motive receding l " points in the face OF
a strong, quick asset position and earn
ings of more than $12 a share In the
first half of the year. Baldwin Locomo-
tive weakened after making a fairly
steady showing In the morning, and sew
eral OF the oil issues receded more than
point. The railroad department, how
ever, had acquired In early dealings
margin above Mondays final quotations
sufficient to Withstand last hour sales,
part.
Call money was per cent. for all
loans. AS the Government is to with
draw more than $1S.000.0o of its local
deposits tomorrow the chances of an
easier money situation this week look
rather slim. Time loans have again be-
come firm at 6 per cent. and some bust
ness was reported at a level a shade
higher than this.
An advance OF 1A to 2 cents a bushel
In wheat futures before the appearance
of the Governments monthly report on
condition accurately reflected sentiment
In regard to the figures The report
showed that news OF hot and dry
weather effects in July had not been
overdrawn. as the spring wheat posi-
ton at the end of last month was put
14.2 per cent less than at the end of
June. A condition of 66.6 per cent OF
normal is "a per cent. lower than the
ten year average for the season. but Is
1871 per cent. above the figure at this
time in 1919. year in which the final
yield was 204,762.O00 bushels. in con-
trast with the indicated outturn of 213.-
900. 900 bushels in the current season.
The prospect now is for a crop of 157.-
900, 900 bushels of winter and spring
wheat, an Indicated shrinkage OF 52,-
600, 900 bushels since the July statement
was issued and total approximately
3o.ooo.0oo bushels less than was pro-
duced last season
The VIII L statistics are not alto
gether suggestive OF declining price
for this form of food In the next six
months. especially as drought abroad
may tend to expand exports over calcu-
lations made last spring. But the out
look continues excellent for a corn
yield in excess OF 1900. 600. 900 bushels.
and as the producers are selling their
crops much more rapidly than a year
ago. the general business situation In
the grain country may feel the stimulus
of good nriceq during the autumn