The New York herald., 1921-08-26
FINANCIAL NEWS
AND COMMENT
Stocks Show More Resistance
to Sellin9-Reserve Ratio
Rises to 66.5 Per Cent.

Stocks showed Setter resistance TO
selling yesterday than they did on any
preceding day OF this week, although
recoveries at the close OF yesterdays
session were fractional and several weak
spots remained. The market was In the
hands OF professional traders, who COW
cred earlier short sales in rail- and in
dustrtal issues during the morning, but
hesitated TO make more than tentative
sallies against prices in the afternoon.
Sentiment was helped somewhat by the
declaration OF the usual quarterly dyi-
idends by the Railway steel Springs
Company and the General Electric Com
pany. and fairly broad buying move
ment in the cotton market had reflection
in stocks. In fact dealings in cotton
futures, which carried several options
above the 10 cent level. were the real
feature OF the days markets. The
recovery OF about S5 a bale evidently
recorded speculative estimates OF the
forthcoming monthly crop report. In
view OF private surveys, a poor state
ment is expected. But the financial
community realizes that any improve
ment in the price will tend to relieve
the situation OF producers and the large
carryover from last year assures ade-
quate supplies for domestic and foreign
demand.
Few railroad shares closed lower than
they did on Wednesday and all OF them
which had been pressed down before this
week gained good sized fractions. One
the applications OF false rumors to a
particular stock, forced at one time a
precipitate decline OF more than points
IT. Mexican Petroleum, but the fall and
immediate recovery left the market as a
whole undisturbed. The sensitiveness of
the market to news OF dividends was
emphasized by the underground report
that the quarterly dividend on Mexican
Petroleum stock had been deferred. The
fact OF the matter was that It's directors
Go not meet for considerable time.
Call money sagged from u to per
cent. on the New York Stock Exchange,
and outside a considerable amount OF
funds went without takers at ~ and
per cent The indication supplied in
these figures OF an easing tendency Of
money rates was made all the stronger
by the weekly reserve statements. The
reserve system as q whole gained s1S,-
$4,000 in gold reserve. while its total
reserve expanded s20.6SS,00o; the ag-
gregate of its rediscounts was $16,761,-
900 lower than it was in the preceding
week. and circulating Federal Reserve
notes declined s17,72S.ooo to the lowest
amount since February 2S. 1919. AL
though its deposits increased s23S2,o 900,
that item was completely absorbed as
an influence on its cash reserve position
by declines Of circulation and growth or
gold holdings. the ratio OF cash to de-
posit and note liabilities rising from
SIS to Sos per cent. The latter is the
highest since February 15, 1918.
The New York banks gain In gold
was no less than s39.5s00oo OF which
s22. 100000 flowed to this centre through
the gold settlement fund. showing for
the second week during the crop moving
period that the largest Eastern money
district was gaining instead OF losing
cash and its equivalent That move
nent is extraordinary. Presumably, 1t
reflects a heavy liquidation of COM
mercial loans here and forecasts an
abundance OF money for temporary use
IN case the general trade reaction con-
tinues further.
Sterling exchange gained 1i5 cents,
leaving of with a rate of $40. Francs
and marks improved. Apparent con-
frmation OF the belief that Germany had
completed arrangements for final repara-
tions payments Of the year came through
details OF credits arranged for. The
completion OF that transaction has caused
covering OF short contracts In the ex-
changes during the last few days.