New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-13
Message Has
Little Effect :
On the Market
Reduction in Steel Prices.
Foreshadowed i'm Selling
on Exchange, Consid-
cred More Important

President Harding's first message to
Congress was we'll received in the
financial district. Hurried reading led
ciicials of banks and brokers to con
cNde that the general purport OF the
document was "constructive But
this was no surprise to spectators,
who anticipated state paper of this
tone. The Presidents utterances, al
ready discounted, therefore had little
visible effect or the endlessly huctua-
ting quotations of securities.
The stock market was more affected
by what took place after o'clock than
before. In the further marked weak
spectators were expressing their SEN
sitvity to Forthcoming changes in the
Industry. After 5 o'clock yesterday
AFTERNOON Judge Gary announced cuts
varying from $3.50 to SIS ton in prices
of the United States Steel Corporation
For weeks the business community has
been waiting for this barometric indi-
cation that price-cutting generally was
fundamental and relatively perma-
nent. Confidence in the new price
levels has been lacking lending a new
statement OF policy by the leader of IN
steel industry. The new price level
can merely test the market. 1t will be
Interesting to gauge It's effect on new
business. The cut has removed the
temporary advantage OF some Of the
Independent companies which had an
nounced reductions earlier. Hence :ho
weakness OF the independents Steel
common was off fractionally, too, on
the days business, but the reduction is
not necessarily bcarish. If it gives
equilibrium to prices and stimulates
business it is exceedingly bullish.
Stock prices were firm throughout
the day, and closed with slight gains
on the average, despite further weak
ness in the independent steel group.
In the morning quiet prevailed, but
there was little heightening of &C
tivity in the afternoon, bringing total
transactions for the session up to
$4,000, compared with $4,000 the pre-
vious day.
There were those who expected the
Presidents words to rouse the market
from its lethargic course, but they had
little justification for their view.
Speeches rarely stir financial markets,
especially when they are along expect
ed lines. If the President had amazed
the country by advocating foreign and
domestic policies wholly inconsistent
with what he had led it to believe he
would there would unquestonably have
been a marked response in the stock
market
But yesterday the market halted as
the -tickers began to tell the story in
new editions every few seconds of Mr..
Harding's recommendations. Then
there was marked display Of weak
ness In the steels, especially toward the
close, which caused reaction in some
other issues. The market was largely
professional, and some traders who had
acquired stock expecting a rise on the
fresldent's message FASTENED to sell
to take meager profits. The average of
twenty railroad stocks at the close yes
terday was 60.75, compared with 60 40
the previous day, and that of thirty
representative industrial stocks rose
from the previous days $3.50 to 1884.
The tone of the bond market, with the
exception Of some of the rail bonds
was firm.
Reports Of the proximity of q solu-
ton of the British labor dispute were
Of more cheerful nature early in the
gay Shan later, when indications of a
hitch in negotiations were cabled over
The late development caused a decline
IN sterling amounting to 1 cent com
pared with the flnal quotation on Mon
day: Lire and Rumanian leu We're
again conspicuously strong. however
rejecting improving trade conditions
those countries.
Short covering led to slight net in
t IRE asses IN cotton quotations, despite
on the other hand, persisted in the
downward movement and showed losses
OF ~ to sA cents for the day, drop-
ping to the lowest quotations Of the
year. ''ie