The New York herald., 1921-01-04
FINANCIAL NEWS
AND COMMENT
Opening Session of Stock Mar.
ket of 1921 Is Strong and
Closes With Firm Tone.

The initial day for 1921 of trading
in the New York Stock Exchange failed
to reveal a distinct trend In stocks, but
gave a forecast of what may prove to
be year Of large transactions in Gov
ernment. railroad, high grade Industrial
and other classes of bonds. Profess
sional Wall Street was bearish despite
the optimistic sentiments expressed in
year end interviews and advertisements
Nevertheless, the market for stocks was
strong throughout the latter part of the
session. and the closing tone was firm
except in n handful of special issues
The volume Appropriated 10000
shares, OF which nearly 40 per cent
were done in the last hour. on the
whole, the net gains could be ascribed
almost entirely to the repurchase of
securities sold last month to establish
income tax losses. Short covering was
a minor factor. Marked liquidation oc-
Cured only in Atlantic Gulf issues, al
though there was profit taking in the
rails. Departments to show the most
consistent advances were oils. indepen-
dent steels and tobaccos.
In view Of the conflicting movements
in stock prices and the lack of construc-
tive factors sufficiently large to induce
the public to speculate for the rise,
financial attention was attracted TO the
bond market. in which transactions ex-
ceeded $13,0O0.000 in volume. All classes
of bonds shared in the reinvestment
demand on the part of those who had
sold in December to record losses. Lib
erty 315s and Fourth 4As, as we'll as
Victory 4As. closed for substantially
more than the lows recorded early in the
session. Foreign issues showed general
Improvement, but there was especial de-
mand for low priced rail issues and high
grade Industrial issues were at all times
in request.
The only important change in the
financial structure over the turn of the
year was the removal of sales for in
come tax purposes. Bears. who were
reported to have set up large paper prof
its in 1920, gave no evidence of hurry
to even their position. 1t was recog-
nized that, although Wall Street has dis
continued most of the readjustment to
a pre-war basis, there are many read
justments still to be made before the |
proper balance from agriculture to the
ultimate consumer be reached. Presi- |
dent Wilson promptly vetoed the meas
tion, but the Senate passed the measure
over the veto, and it remains for the |
House to take similar action Never
theless, Wall Street will have to be |
shown just what relief to the export and |
international situation the War Finance |
Corporation will be able to extend In |
general. much sympathy was expressed |
with the stand taken by the Secretary |
Of the Treasury, on whose recommends
tion the measure was vetoed. There con-
tinued to be no new developments in
connection with certain corporations
which are being carried along by the |
banks and by the voluntary inaction of |
creditors. either OF whom might preeipi- |
prove advisable.
Money rates were undisturbed by the /
withdrawal of $46,0O0,OOO of United |
States deposits from the banks. princi-
pally because the transactions were |
largely a matter of bookkeeping on ac-
count OF maturing certificates Of in
debtedness. Call money renewed at |
per cent. and ruled at that figure all |
day. Time money was nominal Bank !
clearings locally made new high rec
ord on account of the accumulation |
since Friday and were large in all prin-
cipal cities of the country. Sterling ex-
change advanced a cent all round. and |
strength was shown by Scandinavian |
and Spanish exchanges. the latter large
ly because OF remittances to Madrid and
Barcelona. Exchange on South America
also improved. Cotton advanced S. a |
bale, and there was renewed activity |
and firm tone in wheat.