The New York herald., 1921-08-16
FINANCIAL NEWS
AND COMMENT
IndustrialS Decline Under Pro-
fessiOnal Attack While
Rails Advance.

The professional trading element
found II comparatively easy to depress
Industrial stocks in the dealings OF yes
terday by centring attack on three or
half dozen speciality shares. 1t was
clear from the start of business that
buying power was still sluggish, while
comment of the market place Indicated
that the public had not begun to turn
practical attention to signs OF improve
ment In certain lines OF production and
distribution. The railroad department
acted better than did others. There was
Atchison. Chesapeake and Ohio, Great
Northern preferred. New York Central,
Pennsylvania. Southern Pacific and
Union Pacific during the morning to add
large fractions to Saturdays last prices
and the all around reaction OF the last
hour left them with moderate net ad-
vances. Both stocks and bonds had a
neglected appearance at times, the inter-
est taken In bonds through the day as
whole being less than had been noted In
three weeks
The money situation evidently had
quite little to do with the price move
ment of stocks. A call loan ate of 6
per cent in the face of last weeks
strong Federal Reserve statement and
the satisfactory week end report Of
the New York Clearing House institu-
tions was not understood by ,artisans
Of the theory that money has reason to
grow cheaper. Nor was tho reason plain
yesterday why some time loans should
have commanded 65s per cent. The call
money market has acted for consider
able time as though there was daily an
extensive retirement OF old loans, pre-
sumably in connection with the return
home of interior bank balances. which
has found offerings OF new money reluc-
tant under 6 per cent. While the indi-
vidual reports of Reserve banks showed
last week that rediscounts were falling
and cash positions improving as frozen
credit was thawing and crops were NOV
ing to market. the evidence points
toward New York as leading source of
funds for seasonal agricultural needs
just as 1t was before the Reserve system
came into operation.
To-day there will be substantial shift
ing of money in all the Reserve districts
and especially at New York. The Treas
ury has notified the banks here that
some s55,0O0,o0O of deposits will be
withdrawn, and at the same time about
$50 900 900 Of the s157, 900 in Treas
ury certificates, which fall due, will be
liquidated in the New York district. The
transaction and, theoretically, there
should be a softening effect on demand
Joan rates. due to increase of deposits
promised by release Of funds from ma
turing Treasury paper.
| The action of particular Industrial
stocks suggested that the thought of
dividend prospects again came in for
consideration by spectators. Numerous
J dGIAiAro " . " v POhieS WOtt iidi hCa
up at the end Of the day. Mexican
Petroleum and allied issues fell rather
sharply, and there were abrupt reactions
in International Harvester, Continental
Can, General Electric and General
Asphalt. The steel stocks. however. gave
ground stubbornly.
The financial district heard of another
payment Of IS. 900, 900 on account of Ger
many's reparations. which seemed to
have less to do with the decline of marks
to a new low point for the year than to
renewed comment about the rapidity
with which the Reichsbank's paper cir
culation has been expanding. Sterling
fiuctuated through a rather narrow
range, leaving off not greatly changed
from Saturdays last quotation.