The New York herald., 1921-02-26
FINANCIAL NEWS
AND COMMENT
Stock Market Stronger After
Early Declines-FOreign
Trade Contracts.

/ Professional selling effected declines
/ in number of industrial stocks in
/ early transactions yesterday. but a
appeared before noon and the tone was
/ one of strength afterward. This was
/ quite in keeping with Friday in week
marked by pronounced operations for
the fall of prices. Probably an ease
ment of the call loan rate from TO 6
/ per cent. impelled a considerable vol
/ ume of purchases which might other
wise have been held back. but there
was nothing about the market to indi-
/ cate the presence of new fundamental
/ influences. On the contrary, the con-
tlnued weakness of cotton, bringing the
lowest quotation for the cash article
since the season of 1915-l916, was un-
settling for sentiment toward stocks.
and the statement of our foreign COM
merce in January brought forward for
fresh consideration an element working
both for a heavy burden upon the coun-
try's credit facilities and upon the mar.
ket for surplus agricultural products.
January exports of merchandise COM
prised goods valued at 1854, 741 900. which
was s66, Ill 500 less than IN December
and s67. .522, 700 less than in January of
last year. A shrinkage IN the outflow
had been expected, but the condition of
imports during the month had been
awaited with more interest, perhaps. as
a barometer of the country's purchas-
ing power. The aggregate of these for
the month, amounting to 20S,91i.SOo, was
S57, 1873, 400 less than the December total
and s164. 1903. .4S7 below the value of goods
received In January, 1921. The pur-
chases abroad of American buyers have
fallen drastically in the last few
months. the inflow for last month being
the smallest since February, 1918. The
! imports of last September were 1868, POO
600, those of August s513, 100 600 and in
July receipts totalled $537 lis, 900.
The value of January exports was
about ~ per cent less than the corre-
spending month of last year. As goods.
prices affecting contracts for exports
which went out in the first month OF
1921 may be calculated as at least 10
per cent lower than a year before. ii
appears as though the two months saw
about the same volume OF merchandise
sent out of the country. This is remark
able in view OF calculations made re-
Gently about the unsatisfactory state of
fka t,~eI 10 Ilt,A -
S445.S00. 900 of exports. on top of the
tremendous balance accumulated in the
last three years, makes the trade result
in January a subject of study when the
situation Of credit Is considered. The
so-called favorable balance in the seven
months OF the current fiscal year ended
with January amounted to $4,000. .000.-
900. which carries its own suggestion OF
one item which the banks and mer-
chants are financing and indicates one
reason why credit does not ease more
rapidly.
Several stocks which had been under
pressure in preceding days of the week
gained more than point, including
American woolen. Central Leather.
Goodrich United Fruit and United
States Rubber Railroad issues were
firm A rather significant event In the
railroad field, of unfavorable import,
was ignored by the rail stock market.
This was the receivership for the At
lanta, Birmingham and Atlantic, the
road which took the initiative in at
tempting TO reduce wages but was pre-
vented by the Railroad Labor Board and
the National Wage Agreements. The
true Importance OF this event remains
TO be disclosed; but It is worth noting
that the management asserted some time
ago that inability to reduce wage costs
would result in financial trouble.
The March cotton option went through
the 12-cent level and spot cotton sold at
1920 cents a pound. compared with 43&
cents last July. Wheat quotations
gained a fraction OF a cent a bushel.
Sterling exchange recovered IL cents
and at s.s615, the sight rate was not
much changed from the final quotation
on Wednesday.