New-York tribune., 1921-03-09
Market Quiet
Despite News
From Abroad
Military Operations Fail
to Depress Sentiment
to Breaking Point; For
eign Exchange Is Weak

The Allied military advance into
Of the minds of those who operated in
the financial markets yesterday. AL
though there was evidence of uneas-
ness and nervousness in the trend Of
fluctuations. there was nothing sug-
gesting anything like widespread alarm
over the course of events. Except for
q break in the dollar value of the
European exchanges, it was remark
able how little attention was paid to
the important international develop
ment
Many bankers, with exceptional .op-
portunities for gauging developments
overseas, privately express the opinion
that the question of reparations will
be worked out on more satisfactory
basis than now appears on the surface.
General optimism regarding the out
look, rather than any inside informa-
ton, accounts for this attitude, which
is widely held and which was reflected
in the relative steadiness of the mar
kets, in the face of disconcerting news.
In some quarters it is suggested that
the invasion of Germany will serve as
an argument that will induce it to
sign the dotted line agreeing to the
Allied demands for indemnity. Look
ing beyond the immediate effects of
the present tangle, bankers are i'll
clined to look upon failure to work
out solution of the reparations prob
lem as unfavorable to business and
financial conditions, and conversely
would regard a peaceable agreement
on the subject, no matter what the
terms might be, as decidedly helpful.
Being the most directly affected, the
.oreign exchanges were the most sensi-
tive to the European developments, and
sterling and Continental currencies
shrank in value during the day Ster-
ling slumped from $685. to $3.50 at
the close, and before the final sale had
chown loss of 41a cents at the lowest
quotation for the day. France declined
1-0 cent and marks LILO cent, falling
as low as 1.52 cents, compared with
Lei yesterday. European external
bonds were fairly steady. but the in
tcrnals, rejecting the weakness of ex-
change. were slightly easier. There
was rally from the low in the ex-
change market before the close, as per-
sons needing exchange for trade pur-
poses took advantage of the lower
prices
In the cotton market the European
situation intensified the waiting atti-
tude, and the volume of trading con-
tracted further, with insignificant
price changes. Dullness prevailed in
the grain trade, too, as spectators
waited for the government report show
ing farm reserves of wheat on March
]. which came out after the market
closed. 1t showed higher figures than
were expected. Wheat and corn price
CEanges were narrow.
The stock market, after an irregular
opening rallied, then sold off as a re-
sult of professional short selling, and
recovered slightly from the low point
before the close. The result was slight
losses for industrial and railroad
stocks. Despite the obvious attempts
of bear raiders to capitalize the Euro
pean news, there was no indication Of
liquidation, and the amount of trading
was again small. Such stocks as United
Fruit, Allied Chemical, American Su-
GER and the coppers were weak. Short
covering toward the close reduced
losses. Call money was available at 7
per cent all through the day.