The New York herald., 1921-02-10
FINANCIAL NEWS
AND COMMENT
Stocks Lose Strong Tone
Prices Uneven-Steel Out
look Is Paradox.

Stocks failed yesterday to maintain
the strong tone of Tuesday afternoon,
and a highly uneven price list developed
after the first half hour OF business.
What trading showed primarily was the
lack OF incentive TO sustain a forward
movement. at the same time that sub
jects which came forward for attention
were of a character TO promote caution
In purchases for the longer future.
Chief of these was the problem en-
tailed In certain steel price reductions,
disclosed in offerings by one or two
companies at levels of So to sS a ton
below the basis schedule established in
March, 1918.
The steel outlook is ruzzling because
of the intention OF the Steel Corpora
ton to make no reduction. Chairman
Gary made known the position Of his
organization during the day. and boil
stored his position in respect to the
market by asserting that price cutting,
as shown by experience. is not pro-
ductive OF increased business. It is a
question whether that attitude will go
unchallenged by competitors, who have
idle mill capacity and are de-
sirous Of doing an active bust
ness. They may refer to improve
ment which has occurred In tex
tile lines since prices were lowered dur
ing last autumn; but what Judge Gary
hopes to see is a stable price level which
will permit the maintenance OF existing
pendent corporations probably show
that profitable manufacturing at re-
duced quotations can be done only after
wages are let down. The steel industry
is entering a stage of readjustment
which promises exceedingly interesting
developments before 1t is completed.
The steel company shares were no
more irregular yesterday. however. than
were other groups in fact, Midvale steel
shares were firm and Lackawanna dis
played strength. buoyed up by rela-
lively good showing of the earnings
statement for 1920. The income ac-
count was satisfactory as a reflection
of what had occurred, but the Street
dition of orders at the end Of the year
and it Is on data of that sort that the true
outlook for business IS to be judged.
Railroad issues. with the Reading stocks
prominent. were inclined lower and
where a marked upward tendency was
shown specialties, notably automobile
accessory shares. stood in the fore
ground Trading was mostly in the
hands of professionals, who were moved
to bid prices upward on the day before,
when the money market eased, and
sought TO take profits yesterday Money |
rates were unchanged from the per
cent rate quoted on Tuesday afternoon
and, despite demand for call loans
which was less than the supply offered,
the stock market was chary about pre-
dieting permanence of relaxed money
situation.
The advance of exchange rates also
petered out after f1rm tone was re-
corded In early transactions. Specula- !
ton In sterling, francs and marks was
restrained by lack of fresh develop
ments of a positive nature in regard to
the German reparation. The advance
OF more than cents in sterling on Tues |
day apparently resulted In q substantial
flow of realizing sales, for the rate left |
off with a net decline of 1 y cents and |
the French and German quotations lost |
little ground.
In the grain market, as In sterling |
exchange. the advance. which amounted |
to about 10 cents oushel in three
days. melted profit taking sales but
not until after there had been a strong /
bulge. The May option left or about
cent lower. while the March price was
fractionally higher than on the day be-
fore. Cotton recovered all OF an early |
reaction and ended the day a trife |
above Tuesdays final level.