The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-23
FINANCIAL NEWS
AND COMMENT
Rediscount Rate Cut Aids Bond
Markct-Rails Gain With
Other Stocks.


Gated that reactions OF the last three
sessions OF the market had strengthened
the TECHNICAL position OF quotations and
enabled them to respond TO several con-
structive factors. In the first place. the
reduction Of the Federal Reserve Bank
rate from s u to per cent on wednes-
day was interpreted as a sign that the
Reserve bankers were convinced that
! contrary TO the usual procedure at this
! season, money rates would continue 20
shade downward during the crop moving
weeks and the period when autumn bust
ness normally expands. Stocks gave no
reflection OF this for time after the
start OF business, but the stimulus ap-
| Piled to bonds was immediate. Dealings
in corporation bonds spread out rapidly.
with firm price tone, and Liberty issues
were in demand on 4 large scale, evil
denced by net gains for the day exceed
| ing quarter point What strengthened
stocks before noon was the combination
of an active bond market with news Of
price Increases for steel sheets put into
effect by subsidiaries OF the Steel Corpo-
ration and an excellent August statement
by the Southern Pacific Company.
Railroad shares took q prominent part
in the days upturn, gains OF to IN
points being registered by Delaware,
Lackawanna and Western. Chesapeake
and Ohio. New York Central, Northern
Pacific. Reading, Union Pacific, Southern
Pacific and others. But the more buoyant
issues were certain Industrial stocks like
Baldwin Locomotive. Mexican Petroleum
and Tobacco Products, names which
carry their own suggestion OF pool
activities. Tho rise was sufficiently uni
form among different groups OF stocks
so show that traders as q whole were
again in mood to appreciate evidences
Of business Improvement. undoubtedly
going on here and there, and the sharp
recovery of particular stocks. lately quite
weak, betokened a slackening of profess
sional operations for the fall.
Call money continued relatively firm,
|, rate OF 8 per cent. prevailing for all
loans.
The Southern Pacific report for last
month was especially interesting be-
cause it broke tho rather extensive
record of reduced gross earnings COM
pared with those OF August, 1920. which
railroads have been reporting Since
early summer. The increase Of s371.-
GAS failed to measure the actual i'm
provement of freight receipts. as that
item was sl,sSs.2s6 greater than it was
In August 1920, the advantage being
reduced by moderate declines in other
sources OF income. The road, however,
is one OF the small group which has
been doing well in respect to traffic
during most OF the year. its gain in
gross since January l being s3.STS,oS1.
The rigid control which the manage
ment has applied to the expense account
per cent in operating costs, the chief
item in decline OF S12,7S6.403 being
reduction of more than 100000 In
the outlay for moving traffic. reflect
ing largely the reduction Of wages on
July 1.
A notable bit Of comment about the
steel situation was that the recent adj
vance OF So a ton for sheets applied
last week by independent companies,
now followed by the largest producing
unit OF the industry. has brought in
moro business than appeared under the
old schedule. This Is not an unusual
demonstration OF events in the markets
for things in constant use. Buyers fire.
quently are wont to hold off stubbornly
In a falling market and then hurry In
their orders on price uptu-n. although.
obviously. they run prices up on them
selves in go doing.
Trading III cotton was accompanied
by rather rapid and confused move
ments, with final quotations a little
higher than they were on Wednesday.
Wheat futures felt tho influence Of
large export orders by rising slightly
more than a cent a bushel.
The advancing tendency OF Far East
ern exchange quotations finally brought
| the silver market out OF the quiet and
| sluggish state which had existed for
| two months. Purchases OF the metal
in London for Chinese account lifted
| the rate, with consequent advance Of
4 c& cents an ounce in New York. This
| 80. ,.tr,,rot ~o@o Of tt,c