The New York herald., 1921-07-12
FINANCIAL NEWS
AND COMMENT
Exchanges Go Lower, Led by
Sterling, Which Falls 8 IA
Cents to 1862 3-4.

day In interest-and the absence of
features was pronounced-was more
than made up by the decline OF foreign
exchange quotations. Sterling sight
drafts went as low as 3.62%, the days
fall being in excess of 81 cents to the
pound The rate was the lowest seen
this year except In the first week of
January. when fluctuations between
S.5Sss and 3.631a occurred. Marks sold
at their minimum price of the year
yesterday afternoon. and reaction, was
general among European and South
Of sterling is seen in the fact that the
final price was cents and more under
the best quotation OF last week.
Comment in banking circles reflected
OF dollar balances in New York on
account of German reparations pay
ments was again pressing down on the
foreign currencies, especially sterling,
francs and marks. But this was mostly
supposition. The operations of the
Preparations Commission are on4y
vaguely known on this side. The bank
ers of New York and London were led
to believe after the collapse of rates
during the May payments that future
transactions would be handled without
such extraordinary bidding for dollars
as then occurred, yet there has been no
official announcement of ways and means
to be followed. One fact with decided
bearing on the exchange market OF the
last fortnight has been the increasing
output of grain and cotton bills which.
presumably. has found many foreign
buyers of American products possessed
of meagre balances here. The steady
importation of gold denotes this. and
the process OF meeting drafts drawn
against imports from America entails
extensive transfers of funds from over
seas. The weakness of the exchanges
suggests rather pointedly that soon
overtures will be made by foreign gov
ernment and private interests for loans
in this country.
The stock market recorded a scarcity
| of offerings of certain issues and suffi-
cient supplies OF others to make the
price list decidedly irregular at all
times. Professional hands were about
the only ones engaged The action OF
American Sugar, its advance being
| nearly points net. indicated that trad
ers short of it had considerable difficulty
in finding stock when they elected to
cover their contracts. In fact several
sales for cash and a premium on hor-
rowed shares showed that the recent
decline from around IS to 64A had not
shaken out any large amount OF real
stock. Moderate buying carried Allan
tic, Gulf and West Indies, General AS
rhalt, Mexican Petroleum and several
less active issues a point to points
above Saturdays last quotations coinci-
dent with reactions of as large amounts
| In Ajax Rubber, International Harves-
ter, Kelly Springfield Tire, Sears Roe
buck & Co. and United States Rubber.
Railroad stocks were steady for the
most part and were neglected by the
spectators. The rails have acted for
several days. for a fortnight in fact, as
though short sellers were reluctant to
bear down on them. but. at the same
time. buying of them has been hesitant.
The bond market continued Arm, diff
Guilty being reported by dealers In ac-
cumulating any substantial blocks of old
line rail issues.
There was no movement by the bears
to capitalize an advance OF the call loan
rate from 51a to per cent. and the
market was bereft of nearly all in
fiuences. The season OF early summer
frequently finds the market In the dol
drums which, in the past, have been
broken one way or another by events
in the crop regions. Just now the news
from grain regions is somewhat con-
fiicting, excessive dry weather injuring
prospects In certain localities while II
is Fastening harvesting of wheat in good
condition elsewhere. Wheat futures ad-
vanced slightly, but cotton prices were
little changed on the day.