The New York herald., 1921-07-26
FINANCIAL NEWS
AND COMMENT
Stock Trading Still Quiet
Rubbers and TObaccOs Re-
spond to Moderate Buying.

Trading in stocks continued decidedly
dull yesterday but there were signs OF
speculative purchases of shares which
had been prominent because of their
tendency to soften when offerings ap-
peared. Chief among them were rubber
company issues. Several of the tobacco
group responded easily to a moderate
volume of buying orders. The railroad
department was difficult to analyze. In
the morning Saturdays upturn continued
to have influence and carried several
stocks fractionally higher. but it looked
as though realizing sales We're brought
out by the advance and considerable ir-
regularity appeared in the list before
the close. Despite proof disclosed In
recent steel company reports of earnings
that overheads were absorbing all the
income and more in the present sluggish
period. Republic Iron and Steel and
Lackawanna were decidedly strong and
United States Steel common gained
slightly. The largest organization in the
industry will make public today its
statement for the second quarter of 1921
to get broad picture of conditions In
the last three months.
Although the days stock market
meant little in an economic sense, the
bond market reflected again the under
lying situation of the credit and invest
ment field. Great Northern rs. the Bur-
lington joint 61as and several other
issues reached upward to new high
points on the current movement under
demand that had not been exceeded
in insistent quality this year. The fact
that funds on collateral loans are being
offered at per cent. In greater volume
than the demand for them Is an indica-
tion of one of the forces behind the
rising tendency of bond prices. Then.
again, in the case of railroad paper the
outlook Of the carriers themselves is
such as to promote buying Of rail invest
ments The June statement of the
Pennsylvania, issued yesterday, was
really an important document. While
tho roads gross revenue was $500. 900
less than it was in June, 1920, sharp
economies enabled the management to
report an increase of sS.930,000 in net
from operation, the result in June, 1920,
being a deficit of nearly s4,600.000. The
Union Pacific's operating net income in
June, amounting to s2.34s,0o0, was about
three and half times its balance In
June, 1920. 1t Is probable that rail re-
ports will show some irregularity In
respect to profits for considerable time.
because the slump of spring business
and the moderate improvement since
has not affected all sections of the
country equally. But the coming crop
movement and the expected stimulant
which it Is expected to give merchandis-
ing should show broad and positive re-
suits In rail earnings before the autumn
be far advanced. The Presidents mes
sage to-day will be awaited with espe-
cial interest by followers of railroad
securities, because he is expected to
give SOluc ucSdiio Va eAiS pANft AoA PNssAAe .
the railroads in funds.
AS one dispatch follows another from,
Berlin and other contres, discussing Ger
many's methods of providing for repara-
tions payments, the foreign exchange
market becomes more and more confused
and rates reflect uncertainty of traders.
It is not clear whether the reports of
substantial credits raised in Holland and
England referred to individual arrange
ments by Germany in those countries or
comprised funds provided in all the
countries together. including those In the
United States. Because OF the markets
vague knowledge of the German plans.
it was not surprising that sterling
should recede more than cent to the
pound yesterday morning, following a
fall in London. The final quotation of
356M was close to cent lower than
that Of Saturday and francs and marks
were soft. South American rates, how
ever, were firm.
Call money loans were renewed at u
per cent, but the rate in the afternoon
went to s per cent with abundant
supplies offered.