The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-21
FINANCIAL NEWS
AND COMMENT
Reduced RediscOunt Rates of
Reserve Bank Chief Finan-
cial Development.


fecting yesterdays financial markets
was the reduction of their rediscount
rates by the New York, Philadelphia,
Boston and San Francisco reserve banks.
The cuts. which put all rediscounts and
advances on a ~ per cent. basis. were
assuredly an earnest of an easing
money and credit situation throughout
the East and in the Pacific Coast terri
tory. When the Reserve Bank in New
York moved the rate from 6h to s
per cent. several weeks ago, the Dallas
Reserve Bank soon followed with a
similar reduction. but the pressure for
loans in agricultural regions makes 1t
problematical at the moment whether or
not the interior reserve banks will
be able to mark down rates inmmedi-
In the East, however, the suggestion
| that commercial paper rates, now a full
per cent. above reserve bank rates in
the New York district, will be readjusted
soon is carried, and such movement
downward would denote a noteworthy
stride toward normal costs of doing
business. Call money loaned at per
cent, but the cost of collateral loans on
demand in New York have for consider
able time reflected more the relation of
the ebb and flow of Government de-
posts to the total of general bank de-
posits than the actual credit situation.
The stock market was. yesterday a
duplication of the market of Tuesday,
except that railroad shares were not
quite so strong and considerable irreg-
ularity appeared in the industrial stock
list Price changes were divided about
evenly between gains and losses at the
end Of the session. fractions predominant
ing Leather, rail and rubber issues
were higher. Steel stocks acted uncer-
tainly which was not surprising, in view
of the weekly surveys of trade condi-
tions. 1t is clear that strenuous COM
petition for business is developing, with
the result that the price list established
less than three weeks ago has become
little more than a signpost along the
road Of dehation. But favorable re-
suit of further cuts of SO to SIS a ton
in plates and shapes, quoted by indie
pendent producers, is slight increase
in the demand from railroads and con-
struction Companies. Equal cuts in
sheets, according to the Iron Age,
mill operations about 10 per cent. in
the last week.
The dull buying Of STEEL which rapidly
reduced mill operations during the sec
yesterday in the quarterly statement of
the Republic Iron and Steel Company.
At the end of June its orders in hand
were 20 per cent. less than they were on
March 81 and were only fifth of the
total on June 80, 1920. The company
reported an operating loss of s5os.447 in
the June quarter. in contrast to a profit
of s470,242 in the first quarter of the
year. After depreciation. interest and
preferred stock dividends. the deficit
was 1891. 900. an increase of about
s537, 900 compared with the result in tn.
preceding quarter.
AS the Association of Railway Execu-
tives approved the plans proposed by the
Administration for advancing funds to
the railways and for funding obligations
which the carriers owe the Government
in a meeting yesterday 1t seems that
progress in relieving the cash situation
Of the roads will be more rapid than was
expected when the proposal was first
made. Whatever differences existed be-
tween the Government and the roads
over claims seem to have been ironed
out. But comment on the situation is
not possible, as the details were not an
nounced during business hours.
The foreign exchanges reversed Tues
days movement, sterling receding IT'S
cents to 3.577s. The payment of $1,000
900 gold marks on account of the August
instalment of the German indemnity. re-
ported as made in London and Paris on
Tuesday, was smaller than expected.
which may have induced some spectia-
tive pressure against the exchanges.