The New York herald., 1921-02-20
FINANCIAL NEWS
AND COMMENT
Weakness and Unsettlement
Continue i'm Stocks-Silver
at New Low.

The stock market continued yesterday
the generally unsettled price situation
OF Friday. together with the sharp weak
ness OF particular issues which marked
Fridays session. The explanation lay,
as before. in the apathy OF the public
toward the share list, situation which
affords fertile field for speculative
operations for the decline. Moreover,
the way that several Industrial and
shipping stocks melted down suggested
liquidation from quarters where thought
Is turning toward possible dividend re-
ductions or omissions altogether. Allan
tic, Gulf and West Indies fell 5 points
net under dealings which showed an
absence of support. American Woolen's
decline OF more than 8 points denoted
professional activity. which indirectly
had connection with the decidedly un-
favorable statement Of the Central
Leather Company for 1920. Realizing
through the report that the latter con-
Germ had suffered fully as great loss
through business depression and shrink
age Of inventory values as rumor had
predicted, speculative hands Immediate
Iy turned to shares OF other companies
whose writeoffs have yet to be an
nounced. A deficit OF more than $685.
000, 1000. in contrast TO a surplus or
SIS, 900 In 1919. presented vidid pic
tlre of what the movement or prices and
contraction of buying meant for the
great leather producer in the second half
Of 1920.
Utah Copper reacted abruptly without
any new explanation OF speculative SEN
timent toward the shares. 1t was easier
to point toward factors making for
weakness among some OF the petroleum
stocks, notably Mexican Petroleum and
allied issues. News dispatches which
stated that President Obregon appar-
emily had turned away from the liberal
policy toward American oil producers
which was recently noted We're sufficient
TO arouse selling pressure. But 1t was
not clear in the local interpretations of
the Mexican attitude toward drilling
operations that the situation had really
changed in the last few days. The legal
complications affecting petroleum grants
and production privileges are too con-
fusing for the lay mind TO comprehend,
and IL the head OF the Mexican Govern
ment should act in way 70 embarrass
American organizations south Of the
border it would be a reversion Of his
previous leanings.
The foreign exchanges declined, ster-
ling receding 2ss cents to the pound.
The reactions Of Friday and yesterday
wiped out about all Of the Improvement
which the London rate had recorded in
the fore part OF the week. and the same
experience was shown by some OF the
other European rates Chinese quota
tions fell half cent to a full cent, re-
aecting another recession Of silver to a
new low record at 33Ad in London.
The story Of weak, unsettled prices was
extended into cotton, the March option
touching a new low point for tho year
i II AsI
lures rallied after early softness; this
market has been unusually sensitive
to speculative influences OF late. and
\ 1t is more than possible that current
exports. at a rate higher than year
ago. will have a bearing upon prices be-
fore long.
4 The combined statement OF the Fed
eral Reserve system was made avail
able in New York at 80 o'clock yes
terday, earlier than at any time in the
past. Expectation In respect TO in
creases OF gold reserve and aggregate
reserve were borne out, while heavy re
duction Of borrowings by member insti
tutions was disclosed In a fall of NOR,
than $50 10000 in rediscounts and bill
holdings. In consequence of the growtl
Of SIO,S0O.O0O in reserve. a recession ol
1926, 900 in net deposits and a de.
cline OF nearly $4,000 900 in circulating
Federal Reserve notes the ratio OF cash
10 note and deposit liabilities advanced
from 49.6 to 50.3 per cent. A year be-
fore the ratio was 7.s per cent. lower.
/ The New York Bank reported the un-
usual gain OF s25.500.0OO in gold re-
serve, while bill holdings declined near
ly S4t.0oO,o0O compared with the total
OF the week before. The reserves ratio
advanced 2.3 per cent. on the week to