The New York herald., 1921-07-09
FINANCIAL NEWS
AND COMMENT
Stocks Lose in Decline Most OF
Wednesdays Gain-Call
Rate Up to 6 Per Cent.

The reaction of stocks which began at
tho start of business yesterday. urged
along by the passing OF the United
States Rubber common stock dividend
late Thursday afternoon. eliminated
about all that remained OF the rally OF
prices on Wednesday and Thursday
morning. The fall was fairly sharp In
the last half hour. following an advance
of the call loan rate from 515 per cent
to s per cent 1t was indicated In the
statement of the New York Reserve
Bank that temporary hardening OF the
call loan rate might occur because a
s54. 200. 900 loss of gold through oper-
ations of the intrabank settlement fund
showed that money was being drawn
from this centre and loans and circula-
ton increased during the week ended
on July 6. One or two large transactions
put through by the banks during the
week included payment of the large
Burlington Railroad loan. and the nor
NAL demand of farmers and tourists for
currency is being felt.
The stock market evidently was put
into a vulnerable position by the retire.
ment on Wednesday of substantial
part Of the existing short interest Such
shares as American Sugar General As
phalt, International Harvester, Mexican
Petroleum. Pan American and Sears
Roebuck, which declined to more than
4 points. suggested in their movements
that short sellers were again active and
buying power became weaker as time
passed. A factor increasing the timidity
Of speculative buyers is the belief that
stocks recently taken over by moneyed
interests to relieve embarrassed traders
will come out whenever prices bulge
Whether selling of that sort figured in
the rather abrupt reaction on Thursday
afternoon or not, the stocks which re-
treatd most easily then were those that
attracted big spectators during the rise
of the fore part OF 1920. They also led
yesterdays reaction.
Railroad issues accompanied Industrial
stocks lower. but were not subjected to
SO much pressure, and recessions were
mainly fractional. United States Steel
common lost fraction and other major
steel shares were point to 1ss points
The fact that the United States Rubber
Company elected to defer payment of
quarterly dividend on the Junior shares
had an unsettling effect throughout the
the Street had believed that there would
be at least small disbursement.
The July crop report. issued by the
Department of Agriculture yesterday
tion OF wheat during June and a strong
Improvement Of corn. The corn crop
promises to be 3.123, 100000 bushels, the
plant condition showing a gain of 81
was 3.232. 1867, 900 bushels, record CROP
there Is an excellent chance that It will
be exceeded this year. Evidently farmers
who decided to restrict cotton acreage in
ASSA haNu PAdheOo CAtChoANCty W vi "A
and have been favored by weather con-
ditions. The indicated yield Of 235. o0o.-
900 bushels of spring wheat Is 100000
bushels less than the promise of June 1.
but more than 100000 bushels In ex-
cess Of the outturn in 1920. Winter
wheat prospects on July were not much
changed from those Of June. the depre-
clation being about 100000 bushels.
The aggregate wheat yield indicated by
the Government report, amounting to
500 900, 900 bushels, Is 10000. 900 bushels
less than the June figure. but 22. 900. 900
bushels more than 1920 production. AL
together the report was satisfactory for
this season.
Sterling exchange receded a cent a
pound, that movement being the most
extensive for several days. The constant
output of bills drawn against foodstuffs
and cotton apparently Is tenaing to hold
the exchange market down.