The Washington herald., 1921-09-03
STOCKS ADVANCE
AFTER IRREGULAR !
TONE AT OPENING
Become Moderately Aesl
tive Toward. Close of
First Hour.
SHORTS LOSE HEARTs
Signify No Desire 10 Continue,
In Face of Better Sen q
timent.
SHORTS LOSE HEARTs

NEW YORK. Sept After q
quiet and irregular opening the
stock market became moderately ac-
tive toward the close OF the first
hour and prices advanced strongly
over the whole list. II was appar-
ent that a considerable portion OF
the bear element had no desire 20
continue on the short side over the
holidays. especially in the face OF
the better sentiment associated with
the strong rally in cotton prices. To
ward the close the rails showed
gains running up 20 one point while
active industrals were from one
to three points higher. Call money
was at 5h per cent throughout
A peak TO the weeks sharp rally
in sterling was reached shortly
after the opening of business.
With quotations lowering around
s3.74h, a large volume was thrown
on the market and the price dropped
sharply until at s3.70k, the loss
for the day amounted TO 3A cents.
French francs meanwhile declined
I6h points to 40 cents and Ital-
ian lire were off l4H points at
L41L cents. The heavy tendency
recently noticeable in Germad
marks continued with a price OF
1.13h cents, showing a loss OF )
points On the day. No specific rea-
son for the days break was sp-
parent but the occurrence Is per-
hsps not unnatural after the weeks
rapid and considerable advance.
CommodItIe,-s
Cotton continued its advance.
Strength at Liverpool and increas-
ing optimism reinforcing the effort
Of the bullish croy report With
trading active the December future
went as high at 1926 cents and az
a late price OF 1903 cents still
showed a net gain of 80 points.
Wheat, on the other hand. after a
show Of firmness at the start. re-
acted on profit taking and a slack-
ening Of export demand. At sl-25h
December was off tx cents
Gold Imports.
Large imports of gold continue
TO offset added demands for credit
in the South with the result that the
reserve ratio of the combined Fed.
eral Reserve system shows another
moderate gain az 66.s per cent. As
between the regional banks. gains
and losses in reserve position are
equally, distributed and interbau,s
borroNing is only slightly increased
The feature Of statement g. another
sharp drop in the adjusted ratio at
Dallas. the figure for that bank
being. IL borrowed reserves arc eN-
cluded from the computation. only
80 rer cent. This bank al me same
time. has found II necessary to
borrow another $4,000. .aOO from
those at cleveland and Boston
which brings it's total obligations ~
this kind TO s24.soo. 600 and makes
II the leading borrower Of the sys-
tenn. The added demand probably
is related 20 the gathering Of tho
cotton crop. Il being still too early
to expect a countnr-balancinE effect
as a result Of sales from the new
crop. The Minneapolis hank on the
other hand. has been able to repss
three millions to the New York
bank. a circumstance which is CON
sistent with the movement Of grain
from that region. The conclusion Is.
therefore. that our banking system
continues to meet the Increasing
demands of the season easily. and
that the prospects for the autumn
in this respect continue to be fav-
orable.