The New York herald., 1921-08-11
FINANCIAL NEWS
AND COMMENT
Stocks Recede, Report of Delay
i'm Rail Refunding Plan Be-
ing One Damper.

der the influence OF several unsettling
events and of news which dampened
sentiment; hence operations OF the bear
party became more effective and a fairly
general decline of prices occurred. It
was plain all along, however. that no
large amount OF stock was drawn out
OF investment accounts. and a moderate
rally lifted quotations above their low
est levels at the end of the trading pc
rfod. Call money was very firm at
per cent. The withdrawal OF deposits
by interior banks evidently necessitated
the calling of loans and the demand
caused by the replacement OF old loans
with new ones taxed the facilities of
lenders in order to make supplies go
around without sending the rate up.
The time money rate was also per
cent. ana money brokers reported that
moderate increase in business would
probably have caused the rate to stiffen
The extra call for funds in the agricul-'
tural districts is approaching the peak
this season earlier than in other years.
IL WOQio hOL bO IL tAtC i So-
eral Reserve statement this week dis
closed an expansion of rediscounts and
a growth OF outstanding currency.
A factor which worked to send stocks
lower at the start OF business was the
strong intimation in Washington des-
patches that legislation for refunding
railroad indebtedness to the Government
and making large amounts Of cash avail
able for the carriers would not be
pushed until Congress convenes after the
pending recess. AS this would put off
action until along in October the fol-
lowers of rail shares were distinctly
disappointed. A bulwark OF the July
rise OF the rails was confidence, based
in frequent reiteration OF plans in off,
cial quarters at the capital. that size
able quotas at least OF the proposed
$500, 100000 fund would soon be at the
disposal OF the carriers that needed
money. The Street reasoned yesterday
that the longer the postponement the
longer would be the delay in the bust
ness stimulant which Is expected to
come from new railroad buying of ma
| terials and equipment and the liquida-
tion Of current accounts for materials
bought in the last year.
| The railroad stocks, nevertheless, gave
better account of themselves than In
dustrials. 1t seemed as though profess
sional speculative attention was switched
! from them to sugar. oil and steel shares
by the succession of developments dur
| ing the day. The passing of the Ameri-
can Sugar Refining Company's common
J stock dividend, while indicated by known
conditions of the trade. was. neverthe-
less, strong bearish ammunition, caus-
Ing a fall OF nearly 3 points In this Is
sue to new low record and encouraging
pressure against other shares In the
same department.
The decline of $4,000 tons In the
Steel Corporations untitled orders dur
ing July was less than expected, but 1t
would be difficult to build an argument
on trade conditions from the figures as
an irregular state of operations makes
problematical the actual completion of
contracts during the month. OF more
interest was the information In trade
surveys for the week that price conces-
sions In finished products have been few.
although pig iron quotations have weak
ened In some sections.
Sterling exchange became quiet, leav-
ing OFF fraction of a cent lower than on
Tuesday, and the other European rates
were easy. Because of their relation to
the sterling market figures of British
commerce In July are interesting. The
! effect of the spring coal stike probably
was still felt In that month in produc-
ton of goods, but the fact that the total
of exports and reexports, amounting to
E52.530.o 900, was only about one third as
large as In July OF last year, while i'm
ports of ESQ, 10000 showed a fall Of
more than so per cent, was highly
illuminative of the contraction which
has occurred in world commerce.
Wheat prices at Chicago receded "a
to "a cents bushel.