New-York tribune., 1921-02-03
Rise lin Money
hates Feature
OF I5ull Trade
Brokers Asked TO Paw og.
as Conditions Tighten;
Business More Active
Than on Previous Day

/ borrowers in the Stock Exchanga
money market yesterday paid the
highest rates for demand loan accom-
modation since November 10. AS re-
suit speculative activity in stocks was
repressed. Opening at 8 per cent with
i the highest renewal rate ~of the wear
and an advance of per cent over the
dsy before, the money market gave
! signs OF increasing pressure as the
session advanced. and during the noon
hour brokers seeking new call loans
we're asked to pay 9 per cent by lending
institutions.
/ f. The stock market was, as might have
been expected, in view of the unex-
pected tightening of money, a dull and
highly professional affair. Trading
proceeded on b somewhat more rand
pace than thefday before, but even so
the total turnover only approximated
half million shares. In the main it
was much the same kind of drifting
match as was experienced the day be-
fore. More stocks closed with net
losses then nes gains, but the changes
were Indicative of little more than
1essional traders whims. The mar
ket is acting at the present precisely
the way many observers have said it
would. The public is not buying spec
uiative securities, but is confining it's
attention more to investment issues.
Some liquidation continues to drihble
INTO the market. but the volume is in
significant and is probably more than
offset by purchases. With this condi-
tion existing, the dominant influence
in causing day to day price changes is
mainly pf professional origin
Current developments in the money
market are both surprising and inter
esting. Much talk of easier money
was heard as the new year was turned
gency is not in line with general ex-
pectations in Wall Street The trou-
BILE with the local money market seems
to be deep seated and reaches back into
the interior. Banks in the interior
of the country, especial Y in the great
agricultural districts of the West and
South, have continued to draw funds
from New York since early autumn
This movement ran on to January and
still is felt here despite the fact that
this is normally season of the year
when funds flow toward New York.
The bankers explanation is that there
is still q great mass of frozen credit
in the interior of the country, funds
tied up by the slow liquidation of
crops, and the situation caused unre-
mitting borrowing here for interior
dSSouIls SuCu IdCCOTS rs Cnc Ia1iuTG
of the government to make available
for the railroads the $35O,000,000 or
more due the carriers for the Federal
compensation for the six months pc
riod ending September 1 when the
roads were returned to private oper-
atom and the inability of many large
corporations to meet the demands of
their creditors, have naturally been
felt all the way down the line, and
the burden has fallen heavily upon
the banks.
Bankers are confident that the credit
problem will work out satisfactorily,
but the opinion is freely expressed
that the liquidation in the commodity
markets has so far not brought about
the ease hoped for. With another
Federal tax payment date not many
weeks off and with the spring plant
ing season in the offing, the outlook
for pronounced ease in money is not
all that could be desired.
The commodity markets were higher
yesterday, with no pronounced move
ments in either cotton or grain prices.
Recovering tendencies were noted in
the foreign exchanges, with sterling
rising IA cents, to $685., and French
francs gaining 10 points. German
marks were shade higher.