The New York herald., 1921-01-09
FINANCIAL NEWS
AND COMMENT
Stocks Are Irregular on Heavy
Realizing-Federal Reserve
Ratio Declines.

A substantial inflow OF realizing sales
in the final stock market session OF the
week made yesterdays stock list de-
cidedly irregular. There was a lack or
uniformity In fluctuations such as is
natural after a period in which some
shares have been bid upward rapidly
while others of the same group have
not moved with equal vigor. Thus, Mex
lean Petroleum and Houston Oil declined,
while Royal Dutch and one or two other
petroleum issues advanced. The market
supplied no changes which could be con-
sidered suggestive of new tendencies at
work. and was practically professional
affair in all aspects. The optimistic
address Of w. p G. Harding. Governor
of the Federal Reserve Board, on Friday
night added to Wall Streets earlier I'm
preston that business conditions had
turned about from cumulative depression
and were gradually heading toward bet
ter things.
The financial community should take
more than a little cheer in Gov. Har-
ding's satisfaction over the movement in
banking sources of North Dakota to have
farmers liquidate their wheat holdings
in normal fashion. This Is quite the re-
verse OF the recent rather hysterical ad-
vice from farmer organizations to hold
their grain for prices comparable with
those received in May and June of last
year. and as it gains a hearing else
where. which it probably will, the reduc-
ton Of agricultural bank loans ought to
make satisfactory progress The pro-
ducers OF grains, wool and cotton have
learned from quarters Of highest author
ity that whatever result the revived War
Finance Corporation has in financing
sales abroad and whatever the progress
made in the same direction by various
Edge law corporations, the effects cannot
help but be slow In appearing. 1t takes
time 70 perfect organizations and make
arrangements for proper credits, and
nary channels in the meantime will be
highly beneficial to the general credit
and business situation.
The Federal Reserve Bank statement
at the week end indicated that New
York had again been called upon by
the interior for accommodation, and in
consequence mainly of a fall OF $685.
700 900 in the gold reserve and of S22,-
in, To
Of cash to deposit and note liabilities lie
clined from 40 to 39 per cent. The local
institutions interest in the gold settle
ment fund was sS,S00,000 lower than
the week before, while metal at command
of the reserve agent declined SIS. 700. 900.
Net deposits were not greatly changed
from the preceding week, and the con-
traction of Federal Reserve note circu-
lation fully met expectations for the
second week after Christmas, as 1t
| amounted to nearly $25,OOo,OOo. The
! aggregate of this currency outstanding,
amounting to $500. 900, is the small
est since the week of April 80.
The statement of actual condition of
the Clearing House members showed
that while loans were reduced extern
sively. there was also marked expan-
sion of deposits. In fact, $4,000. 900
recession of loans occurred parallel to
an expansion of $50, 100000 demand and
time deposits. which was taken to ind;-
cate drift which money rates should
reflect in the near future. The growth
of deposits had natural effect upon
reserve. as excess reserve declined nearly
$2,O00,O0O. although reserve credits at
the Reserve Bank increased more than
81, 600, 900.