Evening star., 1921-11-03
MARKET SPECIALS
'""t'-'
AND BONDS HIGHER
Effect Of Rate Cutting-Gas
Stocks FavorabIe-Gen-
eraI Price Gains.
BY STUART p. WEST.

NEW YORK, November 3.-Reduc-
tion in the federal reserve discount
scale to AZ per cent in the eastern
district, per cent in the west. and
5s per cent in the south, came pre-
cisely as expected.
That the Bank Of England should
have promptly followed suit and put
its discount rate down to 5 per cent
was also quite as anticipated.
1t is well understood. of course,
that there is twO-fold aspect to this
lowering of American discounts.
First, it is the proper readjustment
to the reserve ratio, which has been
rising almost uninteruptedly from AZ
to above 40 per cent, and second, it is
in accordance with the avowed pur-
pose of the reserve board to give the
industries of the country the benefit
Of lower money rates as fast as it
was permissible.
Investments Higher.
1t was in the bond market and in
the investment section of the stock
market that the effects of the reserve
banks action was chiefly. felt.
Today the renewal rate on call
money was adjusted to the Az per
cent level; this was all that happened
in that direction.
In the bond market there was an
other lively advance in which the
United States war loans took the lead.
Both liberty and victory issues sold
at the best prices of the year.
The spccula tive stock market has
all along been Indifferent TO the
course of money rates. 1t has not
suffered when call funds have been
comparatively scarce; it has not en-
Unused when the money market h6.
eased. That it should not have felt
any particular stimulus today was
therefore not surprising.
Tone Is Better.
The general market during ths
greater part of the time was quiet,
but it was decidedly stronger than on
the previous days of the week.
There were still no signs that pube
lie interest was increasing, but operi--
tions for the rise went on with con-
siderable more confidence in special
stocks. and in the end the advance i.s
these had an effect upon the rest O:
the list. :.
The shares selected for leadership
were those, as rule, which have been
most favored in the market of the
last week or So-the gas stocks, tiS
stocks Of chain store companies. par.
ticularly kresge and Woolworth. En-
dicott j Johnson, the shares of food
products, like Corn Products and
California Packing.
a short interest IN ears-Roebuck.
became frightened at the strength ole
the department store group and bid
that stock up violently. Ice shares.
because of the stability of their bust
ness. were in active demand at new
highs for the, year.
American International.
The situation as regards American
International Corporation appears to
be gradually improving. This is true
as regards the investments of the
corporation at least. 1t was figured
that on August ! the holdings of the
company had value of $50. and this
has jumped within the last two
months to approximately SOS. This
means that American International
could liquidate its holdings At pres
ent prices and show good profit.
Marine preferred. for instance. is Sd id
to be held on the books of the cor
poration at S3S share, while Rubber
has been marked down to about the
same price Shipping business. whiie
it has not yet taken a radical turn
for the better, is reported gradually
imDrOVing