The New York herald., 1921-01-25
FINANCIAL NEWS
AND COMMENT
Action Of Markets Indicates
Active Demand for In
yestment Securities.

The prominent events in the market
yesterday were comprised in the abund-
ant evidence OF an active demand for In
vestment securities. in further substan-
tial advances of the foreign exchanges
and in good recoveries of cotton and
grain. The sSo.0o0.oOo OF Kingdom of
Belgium bonds were oversubcribed. the
books being closed few minutes after
they were formally opened, and plans
were made known of a forthcoming
$s0.ooo.000 long term IN per cent.
issue Of the American Agricultural
Chemical Company, to be offered on a
basis TO net about 7% per cent The
keen competition for first grade muni-
Opal bonds was again emphasized by
sixty bids for more than Ave times the
stipulated $5.00o.0o0 OF city of Phila-
delphia bonds. and suggestions of other
large corporation and municipal financ-
nificant of the underlying strength Of
the bond market that, in the midst of
attractive new offerings bearing 6 to
per cent. income the old line railroad
and Industrial bonds and notes hold up
firmly. Liberty bonds, which gave signs
of easing on Saturday. were steady
yesterday, and the lack of a desire to
sell was shown in a slackening of busi-
ness
The immediate success of the Belgian
Offering lad natural effect on Belgian
exchange, which advanced vigorously
but 1t was French exchange that at
tracted the greater attention. The rate
climbed briskly upward from 6.ss cents
through the cent level and. at the
maximum quo tation of 7.40 cents each.
the quotation stood higher than at any
other time since August. A subject for
debate could be supplied by the question
whether the most influential force be-
lind the persistent upturn of francs Is
tie tendency Of money, the sentimental
power of expectations regarding the
meeting of the allied commissioners in
ir this market little later. Prepara-
tions for a loan would have the same
effect as has been seen lately In the
Belgian exchange market because es.
tablishment of substantial credits on
this side would tighten the pressure
of bills drawn against merchandise ship
ments. German exchange gained more
ground: in fact. all European exchanges.
including the much depressed Austrian
quotation. scored advances on the day.
In stocks. business came close to being
the dullest of the year But firm tone
of prices during the greater part of the
session proved uncomfortable to bears,
who had regained some of their con-
fidence In the easement of last Friday,
and when several petroleum issues sold
eff in the final hour the effect else
where was Indicated in merely irregu-
lar list of prices. The Industrial shares
left off rather heavy. with strong spots
showing here and there. Call money
remained at per cent and last weeks
proof that funds flowed away from New
York when rates eased off had reflection
IN slightly hrmer tone OF demand
loans. The Federal Reserve report of
Saturday showed how important 1t is
these days to compare the entire sys-
tents showing with that of any one
district. because the banks in New York
and st. Louis were the only ones which
cid not improve their reserve positions
curing the week. Intrabank borrowing
showed that the liquidation of grain
was proceeding. while other loans in
the Middle Western districts were COM
ing down.
Short covering was factor in cotton
and grain. a movement containing no
surprise against the background of last
weeks decline Wheat futures advanced
3A to 3Ia cents at Chicago while cot
ton rose 80 TO 40 points.