The New York herald., 1921-04-08
FINANCIAL NEWS
AND COMMENT
Stock Market Weakens as Call
Money Rate Advances to
Is l-2 Per Cent.

The quick upturn Or the can money
ratio from 5ls Is 6ls per cent. on the
New York stool, Exchange, which oc-
Cured shortly before the close or the
stock market yesterday, was distinctly
surprising 10 persons whose thoughts
had been turned toward continued ease
OF the demand loan quotation. The
movement aided in making weak the
tone OF stocks which had been quite
uncertain and unsteady before. For the
hardening OF money there were two ex-
plantations that appealed Immediately TO
the Street, neither OF which could be
fully confirmed in banking circles. One
was that interior banks, as on somewhat
similar occasions last year and IN jan
| uary OF this year. had been moved by a
slack demand and low rate for funds
on call 10 draw down their balances in
New York, preferring to invest part of
their deposits in mercantile bills and
acceptances which make return in
excess OF per cent. The other was
that the rise reflected nothing more than
the bidding Of late comers IN the loan
market. The latter View presupposed
that the rate was only temporary and
disclosed no real change in the supply
or funds offering for day TO day bor-
rowing.
The unexpected action OF the call loan
market was enough to make confident
the activities OF bears on stocks who
had made fair progress previously. The
improved sentiment which carried over
from Wednesday was in evidence for a
short time only during the morning, for
the strike news from England was dis
couraging and followers OF the railroad
shares saw in the Railroad Labor
Boards ruling in the New York Central
matter the prospect Of delay before any
real and significant decision is made on
wage contentious. 1t is. however. not
at all likely that the Centrals manage
| nent was at all startled by the board S
refusal to permit a tentative reduction
of wages as Of April I. for the flood of
appeals from proposed wage cuts on
other roads had indicated long ago the
probable attitude of the board. What is
to be hoped for is quick results after
both sides are heard in hearings TO begin
on April Is. 1t looks now as though
more is to BE expected from the labor
boards rulings than from efforts for
Cancellation OF railway employer and en-
ployee in Washington.
The stock market was as highly pro-
fessional as ever. the selling of real
holdings being traced only in such issues
as Central Leather preferred, which de-
scended close to the minimum point OF
1907. and in several specialties. Specu-
lative pressure was cxemplfied chiefly
! to . points by American Woolen. Bald
win Locomotive, Great Northern pre-
ferred, Northern Pacific, International
Harvester, Royal Dutch, Reading and
Railroad receded TO Ss q, the days re-
action being a half point. The optimis-
tic survey of potential oil production in
Mexico made by the head OF the Mex
lean Petroleum Corporation was influ-
entail for time in inducing short COW
ering in this and allied issues, but the
session was not one in which construc-
tive factors had much power.
The statement OF the Department OF
Agriculture on growing crops was of a
sort to stir a mixture OF feelings in the
markets. The condition OF winter wheat
on April /, 81 per cent. OF normal, COM
pared with s7.9 per cent. on December l..
1920. and 1916 per cent. on April l OF
last year. forecast a possible crop which
will be fourth in size among the coun-
trys greatest The futures market.
however. showed that the statement had
been we'll discounted in the recent de-
cline, both the May and July options
gaining ground.
Sterling exchange receded more than
4 cent and other rates were heavy.