Omaha daily bee., 1921-01-06
Financial
Che Menu b ork Gimes.
BY ALEXANDER DANA MOVES.
Chicago Tribune Omaha Bee Leased Wire.

ShicAkO ACCOMPLISHMENTS otc A<ouocu W hCs
New York, Jan. S.-With another
day of unchanged money rates, the
really important incidents of today's
markets were the further decided ad-
vance in government bonds and the
great strength Of sterling exchange.
In the bond market, prices for the
Liberty loans again led the move
ment OF the day with some very
striking gains. The 31a per cents
and the AZ per cents of 1918 wen,
practically point above Tuesday;
advances over last weeks closing
prices now range as high as 2H
points. Even the Victory AVS.
which have lately been much less
subject to depression than the 9TH
ers. sold at the highest prices since
the :;rst week of October.
This movement hardly needs
comment; it is entirely logical, be-
irg partly reaction froIn necessitious
ycar-erd sales or sales to fix
losses" but largely. also, conse-
quence OF genuine reinvestment,
coupled with some clearing away
of last months delusions about the
national revenue. What was almost
equally striking today, however, was
the active buying and half to three
quarter point advance in the num-
Der of long-term bonds of Euro
pean governments.
Sterling Advances.
Sterling advanced no less than slic t..
ri trtr at
1GXc from last weeks lowest, and S2hc
from the bottom figure OF the season
(reached early in November) aCd reach-
irg the highest rate since the third week
CT August
In the main. today's noteworthy ad-
vance. like all of the past months re-
covery. reflected progressive removal q
actual money tension IN our market.
There are other contributing infuences
such as the fact that, since october. Eng.
land has purchased only $4,000 bales Of
against more than 1000, 900 bales, bought
ut prices twice as high. in he corre'
spending period year before What this
meant was shown plainly enough ey the
ports to England Of $4,000. 600 as COM
pared with, october, and Of $4,000; goa.
as compared VIII Novemhsr. .n,, asls orr These sos
rnany weeks. 1t is probable that today's
unusually violent advance was due to the
sudden discovery Of the facts by belated
SPECTATORS or by lnteTnHtlONdt HlSrcHdHts
who had let their drafts accumulate and
o,erstayed their market.
Business Uncertain.
Business on the stock exchange r5.
lapsed In a purposeless backward ana
forward movement. rejecting little but
the restless activities OF professional
spectators. Prices declined under such
auspices all the way FROM, fraction t,
several points, after which they recoy-
cred most or all OF the early losses. In
the end net declines and net advances
we're about equal In number ard few o.
them important. How far the reduction
CT dividends has been discounted In ad.
vance. thereby losing its influence OIL
present values, was shown by the lack OF
response to the cutting in two OF tho
quarterly rate on Midvale Steel shares.
The general market was stronger after
the announcement than before and Mid.
vale stock itself closed only IA lower
Probably Wall street was relieved that
the dividend had not been entirely sus-
pended: 1t had expected the worst. In this
os In other similar cases. No doubt there
will be further instances to show that the
indiscriminate pessimism OF last month
was overdrawn.