The New York herald., 1921-04-15
FINANCIAL NEWS
AND COMMENT
Stocks Weaken as Market
Realizes Seriousness of Brit
ish Labor Situation.

Stocks broke away yesterday from
their irregular tendency OF the preced-
ing three days OF the week and became
weak in selling movement which in
cluded all classes OF shares. The ex-
PLANTATION lay in the decidedly unfavor-
able aspects OF the British labor outlook
and in fresh emphasis of factors that
had been working against railroad and
many industrial issues Among the
latter influences we're lack of informa-
ton showing that decision on railway
wage and rate problems would come
soon and renewed surmises about the
position OF certain railway and manu-
featuring company dividends. The mar
ket was what one would expect after
several days OF persistently unsettling
news. The efforts OF traders for the fall
OF prices seemed finally to bring out
fair amount OF stock held for the rise. the
product being general decline extend
ing from point TO 4 points and moro.
Among the issues disclosing particular
weakness were American Sugar. Cana
dian Pacific. Crucible Steel, Republic
Iron and steel. Sears, Roebuck & Co.
and Union Pacific. Call money remained
al I per cent.
While there was evidently selling BY
persons who recently had faith IN a re-
covery, the rather stubborn front pre-
sented by prices in the reaction showed
that such liquidation was reluctant The
stock market community. while de-
pressed by the railroad outlook, Is never
theless impressed with the fact that
quick turn might come in railway pros
poets. This could be caused by an un-
expectedly early decision by the Railroad
Labor Board on some of the contentious
on wage schedules brought before it. A
rally OF quotations could also be based
on a settlement of the British strike be-
fore the workers follow present instruc-
| tions to quit work to-day. But the Street
was inclined TO believe relief from either
source was remote. AS to second day
consideration of the Steel Corporations
price reduction nothing suggestive Of
IFdQG results dppGdtGu. LiC iilSi
tionaI Harvester Company announced
that its products. made chiefly of steel.
would be reduced 10 per cent. because
Of the lowered quotations of the raw
material used in making them; but the
cut will not be put into effect until next
years deliveries are made. In that de-
cision was contained rather striking
relationship between costs and prices
the reduction of steel now in effect will
not, in many cases, be felt by the con-
sumer Of finished goods for many months
/ to come. The parallel is found in the
gradual passage OF price declines from
the wholesale to the retail fields, which
supplies one Of the perplexing and ex-
asperating handicaps in tracing the
actual progress of price defiation. From
what may be gathered from news des-
/ patches. the failure of retail goods prices
10 follow closely reductions in whole
sale quotations in England has stiffened
the opposition of coal miners toward a
return to normal relations between EN-
ployer and employee.
/ Sterling exchange recovered slightly
from Wednesdays reaction and rates
on Continental centres were generally
\ higher. The Bank of England, through
heavy declines OF loans and deposits and
sizable fall of circulation. was able
to report a rise OF the reserve ratio
from 12.1 to 1873 per cent during the
\ last week. The rate OF minimum dis
count continued at per cent. and 1t is
worth noting that conjecture about a
marking down of the rate has appeared
4 lnfreauently of late.
4 There was heavy selling of grain with
a moderate recovery In the Chicago
futures market near the close OF busi-
ness. Cotton also receded. the market
showing no enthusiasm whatever over
the March report on consumption. The
statement showed that 437.9s3 bales had
been used, an increase OF 42.S70 bales as
compared with February results