The New York herald., 1921-07-28
FINANCIAL NEWS
AND COMMENT
United Drugs Collapse Fails
to Shake Prices Of Rank and
File of Other Stocks.


and file of stocks stood up yesterday
while particular Industrial issues were
being depressed by unexpected selling
seemed to indicate that considerable sta
bility had grown out Of the price re-
adjustment of recent months. With the
exception of a half dozen issues the ac-
tive Industrial and railroad shares left
off with fractional advances. The show
ing made by steel and rail shares at
tracted attention both for the reason
that the market was the most active of
the last fortnight and because where
real weakness appeared 1t was of the
sensational variety which frequently
undermines quotations all around.
1t was realized before the session was
far advanced that an especial influence
lay behind the collapse of United Drug,
and the trading community quickly as
cribed the weakness of Pressed Steel Car
that mad been raised before in respect
to the continuation of dividends at the
rate OF per cent. The fall of more than
II points in United Drug shares was
connected with such overextension of a
leading owner of the stock as to neces-
state the calling in of trustees to man.
age his affairs. There have been other
similar episodes since the market turned
downward last year and the market fol-
lowing has learned to isolate them, see-
ing that they have only remote ap-
plication to the course Of stocks as a
whole.
Doubtless the real tone of the days
price movement was directed largely by
the situation of money. The Treasury
depicted the true drift of money and
credit in the Secretary's announcement
of n new offering of $500. 100000 of six
months and one year certificates of in
debtedness at 5A and 81 per cent, re-
spectively. The rate of the shorter ma
turity is the lowest for six months
paper offered this year.
The call money market is reflecting a
decidedly light demand and an expan-
sion of offerings from banks and cor
porations. the latter-referring to large
industrial units in good cash position
putting out temporarily idle funds at the
best rate the market affords. For the
first time since November. 1919, the
call loan rate on the New York Stock
Exchange receded yesterday to AZ per
cent. but it failed to picture the actual
totA af nNlI I,tA
banks made liberal offerings outside at
per cent and loans at a rate as low as
per cent were reported. The easement
of money is evidently being enhanced
new securities at the same time that old
loans for the purpose Of carrying bonds
in distributing houses are being liqui-
dated as investors take away the securi-
ties. In case an expansion occurs In new
financing. which Is likely to happen as
autumn activities of business interests
| increase. an effect may be seen In a
hardening of money. But the broad
tendency of rates is evidenced in too
many ways to suggest a permanent rise
In commenting on steel trade events
of the last week the Iron Age noted
briefly that every producer is meeting
competition as 1t Develops, which ac-
counts for great irregularity In price
schedules. Certain products. notably
sheets. are reported as at SO to IS per
ton lower than the base prices set by
the United States Steel Corporation early
this month. The industry again this
week sees encouragement in prospect of
railroad purchases of materials, which
probably has its genesis In the proposed
program for increasing railway cash
through operations of the War Finance
Corporation. Inquiries for round tom
nages of rails for export, however. are
in the market. offering American mills a
test in competing with foreign producers.
Wheat futures advanced 215 to AZ
cents in Chicago. buying being furthered
by light deliveries and the approaching
end OF the July option. Cotton hardly