The New York herald., 1921-08-18
FINANCIAL NEWS
AND COMMENT
Fate Recoveries in Stock Mar
ket Carry Most Prices Over
Tuesday Finals.

From yesterday midday onward
stocks displayed increasing resistance
to pressure OF short sales and late re-
coveries from the lowest levels were
sufficient to leave most active issues
higher than they were on Tuesday. The
| Improvement appeared. however, to re-
| fleet nothing but covering of short con-
| tracts. influenced by an easier tendency
| OF call money and also by news from
Washington that strong efforts would
! be used by supporters of the Townsend
railway bill, which provides for funding
the carriers debt to the Government. to
pass the measure before the Congress
should adjourn. Purchases were most
insistent in shares which had declined
the most in the last ten days. Mexican
Petroleum being a feature with a range
of ~ points for the day and net
gain of 27s points Advances in excess
OF point were recorded by American
Car and Foundry, American Locomotive.
General Electric, Houston OIL. United
States Rubber and several stocks in
less active groups. Railway stocks
generally made up their fractional re-
cessions OF the preceding day.
There was less interest for traders in
the market developments. although
pause in the recent persistent decline
was welcome. than in outside events and
news which promised to have a bearing
on securities later. AS the Street had
feared that the railway legislation
would go over until next session of
the Congress, the prospect of carly ac-
ton was pleasing. The programme for
funding the rail war debt and of making
available many millions of cash for
roads through sales of collateral held
by the Director-General of Railways has
application far beyond the wellbeing of
the carriers themselves Corporations to
which the roads owe money for supplies
and past services are hoping to see these
debts liquidated, and roads are look
ing forward not only to the retirement
OF running accounts but also to the
purchase of needed repair material. new
equipment and fuel with fresh funds.
The bearing which a good railroad cash
position has on industry which sells
goods to them is obvious.
Although the weekly steel trade sur
veys note this week that new CIR build
Ing and car repairs are bringing orders
to the mills, the extent of contracts Is
not as large as producers had expecte d
for this season, due partly to the fact
that repair shops have. considerable steel
in stock. 1t is worth especial reference
that pig iron prices have advanced so
cents to So q ton in several important
districts, evidently a result Of low pro-
duction and, as the Iron Age states. Of
efforts of iron makers to limit the
losses they have been making on raw
materials bought last year" In steel
more resistance to price declines has been
seen than occurred in several preceding
give and take between producer and
consumer owing to stiff competition for
current business.
| Call money was loaned on the New
York Stock Exchange at per cent. with
loans outside reported at 51a per cent.
| The market evidently felt the effec. of
q net increase of local bank deposits as
a result OF the liquidation Of a greater
volume OF maturing United States
Treasury Certificates on Tuesday rather
than a result of the amount of new
paper which subscribers paid for. The
! Treasury is TO withdraw about SIT ,000.-
600 OF its deposits here tomorrow. a
draft which Will not necessarily retard
the relaxation of demand loan charges,
but nevertheless will be a factor in the
market at this time of outflow OF funds
to the crop regions.
German exchange recovered further.
the rate going to 1.19h. a reco very of s
points. The movement evidently was a
back wash from q recent great specula-
ton for the fall in Berlin. over there
as marks have fallen security prices
have advanced under heavy purchsies.
with the result, according to yesterdays
dispatches. that the Berlin Bourse has
been closed for two days to enable brok-
ers to catch up with their clerical work.