The Washington herald., 1921-09-25
EARLY ADVANCESI
ARE ELIMINATED
BY PROFIT TAKING !
Stocks Fall Slightly Be
low Previous Days oif
CIose 1ah
REVIEW OF WEEK.
Better Banking Conditions
And Improved Investment
Market Most Conspicuous.

NEW YORK. Sept. 2t.-of the two
phases OF todsy's stock market, the
second was the more natural Al thee
opening and for an hour thereafter
Industrial and railroad issues con-.
tinued the advancing trend Of yester.
day. Particular attention was paid 20 =
the railroads. one or two Of the high.
grade issues touching the highest point
Of the year. In the general list OF
railroads gains Of and 2 points were
registered before the trend was broken,
Practically the same condition pre-, /,
vailed In the market for Industrial
stocks slthough the movement vas
less general A sharp break in Royal
Dutch stock around the end Of the first
hour led 70 profit-tsking which, in a.
market showing an advancing ten 2
dency. Is always carried out prior 10
trading holiday. In this case the
reaction was more pronounced in view
OF the FIRST hour advance. In a mssr'
5ority Of cases stocks not only for
feited all their early appreciation but.
even fell slightly below the closing,
level Of yesterday.
Clearing House Reserve.
A decrease Of s2l. l.sss.sIo in the sur
plus reserves OF the clearing house.
banks brings this item down 20 332r o
65S. $50. Loans and discounts Increased =
Sc. 100000 and deposits were ss6.lO2.-
900 less. The reserves Of member banks
at the Federal Reserve Bank decreased
s3l. SIS, 900.
Review of Week.
With the chief speculative markets
still fluctuating rather simlessly in
the slack period following the recent
rally resulting from news Of the short
cotton crop. the features OF the week
have been the renewed evidences OF
better bankink conditions and an i'm
proved Investment market. Industrial
and commercial news continues to res
veal a modest Improvement in business. p.
but the more striking developments
are in the more strictly financial mar
kets. On the other hand. bold and y
drastic writing OF Of losses. such as
that embodied in the recent Guaranty
Trust Company statement clears away.
suspicion OF impending disaster. takes
account OF the worst possible inter o.
probation Of losses incurred on trans
actions arranged under conditions OF
a year or more ago. and sets the stage
Of greater profits and greater optimism.
The growth in bank reserve is 81:
deed impressive. Following a slight
/ check over Labor Day. which de-
ceived some observers into thinking
that an autumn turn in the credit
situation had arrived the ratio Of the
| combined Federal reserve system has
! gained ~ per cent IN two weeks,
which is rather better than the rate
/ Of improvement realized during the
summer. The explanation undoubtedly
lies to no small degree in the rally
! In cotton. which is allowing the South
TO Iiquidate its holdings at favorable
prices and in the selling OF Western
grain. While II may develop that the
4 extraordinary improvement In the New
4 York Banks position may be a tenn
porary result OF the huge financial
transaction associated with the tax
date. the tendency toward greater
monetary ease is unmistakable. The
condition in this country. furthermore,
has an important advantage over the
similar condition at London. in that
1 our surplus OF funds is accommodating
| In a natural and healthy way, while
that on the other side OF the water
is based on imitation and the govern
ments inability to pay IL back.
Stocks are continuing to back and
| ill after reacting from the peak OF
the recent rise. and speculative opinion
is uncertain as to whether or not
considerable recession is TO preceds
another forward movement Consider
ing the professional character Of this
market and the magnitude Of the ad :;
vance already accomplished, the cous
dition Is not. OF course, surprising,