The Washington herald., 1921-02-27
BANK STATEMENT
SHOWS DEMAND :
DEPOSTTSLOWER
Two Millions Increase in
Surplus and Loans
Disclose Decrease.
MARKET MADE GAIN
Judge Gary's Statement Has
Healthy Influence on
Trading.

NEW YORK. Feb. 26.-The actual
hank statement today showed sur
plus Increased s2,6ls.6lO. loans de-
creased s2.5l6.0OO and net demand
deposits decreasel s2t. .253. 900. The
average statement showed surplus
Increased sl,304,5le, loans decreased
sl7.362, 900 and net demand deposits
decreased s25,i4O,0Oo.
The Federal reserve bank showed
lO.5 per cent against ali per cent
a week ago OF ratio OF total re-
serves to deposit and Federal re-
serve npte liabilities combined. II
also showed al per cent compared
with 43.s per cent OF ratio Of re-
serves TO net deposits after deduct
ing 20 per cent gold reserves
against Federal reserve notes in
circulation.
Market shows Strength.
with the exception Of Reading and
a few specislties the general stock
market showed strength today and
closed with fair gains due TO the
denial by Judge Gary Of the United
States Steel Corporation that wagts
and prices of steel could be reduced
in the immediate future.
The general list was making good
progress upward when heavy Of
ferings of Reading common broke
the stock about three points and
caused hesitation in other direl-
tons. Operations continued almost
or-ir"ly for the account OF profess
sionals.
There was less selling reported
from Palm Beach because some OF
the professionals are beginning -
return TO this city.
Short covering was the mainstay
OF the strength and continued " 10
the close when final prices were
near the best. Those issues in which
there is a large short interest were
naturally the strongest
Some Of the large wire houses
which have been bearish for weeks
and keeping customers out Uf the
market have started to advise pUr-
chases with discrimination.
small Buyers Active.
Good buying OF Kansas Citv
Southern common continued and
forced the price 10 new high level
for this movement. Purchases are
accompanied by rumors that the
Southern Pacific or the Union Psc-
ific will take that property over.
Strength was also noted in s..
Louis Southern common and pre-
terred shares. the buying being
based on reports that the directors
will meet in about six weeks and
discuss the adyisability Of putting
the preferred stock on a dividend
| basis.
Atlanta, Birmingham & Atlantic
continued under pressure because
of the appointment OF receivers and
declined TO a new low record. Per-
sons who have substantial amounts
# railroad shares bought for the
rise are growing impatient at the
failure Of that group TO show any
signs of activity and are waiting fo-
a chance to get out at the prices at
which they made their purchase.
The number Of odd lots Of railroad
shares held by small investors prob
ably breaks all records.
Readings heaviness was pro-
nounced in the last hour when n
a very short time il broke three
and one half points TO a new low -
72iz for this movement Tho de-
cline Was attributed t. q cnuceU-
trated effort by shorts TO break the
stock for the purpose 0f covering
short commitments made about ih"
time the segregation plan Was msde
public. Some large wire houses were
advising the purchase of tho stock
yesterday on any further deelin..
Although the annual report "f tho
International Paper COMPANY Is not
IeXpected TO be published uUiI the
latter part Of March there are many
rumors current regarding the cN-
cellent showing that is expected II