The New York herald., 1921-03-08
FINANCIAL NEWS
AND COMMENT
Stocks React After Strength
on Bearish News on Rep
aration Situation.


Dealings ii the stock market were
divided yesterday into two phases, q
rerlod OF strength being followed by
{. gradual reversal Of the price trend
when the decision IN London To send
troops into Germany became known. II
was not clear however, that the re-
action reflected anything more than
professional jockeying for positions
which promised the best profits. In fact.
while many industrial stocks and quite
Il number Of railroad issues ended the
session with declines Of large fractions
to more than a point the foreign ex-
changes recorded no great uneasiness
over the reparation outlook, and the
grain market whose conventional re-
sponse 10 serious military demonstra-
tions is a rise, was inclined lower
throughout the day. Stocks that were
prominent in the morning advance and
also in the recession afterward were
Atlaydiesf Gulf and West Indies, Gem
s'ral Asphalt and United States Steel
others which receded rather easily in the
afternoon were Allied Chemical Corn
Products. Northern Pacific. Reading
ana Tobacco Products. glance over
This list shows that most Of the shares
were ones whose movements lately
have been directed forward and back
by tie speculative community without
great deal Of effort
The advance Of the first two hours
Of business evidently was caused In the
main by short covering induced by the
excellent bank statements OF the week
end. The contemplation Of the best Fed
eral Reserve ratio comprising the
showing of the entire system) IN a year
and a half was made all the more inn
pressive by fall OF S17,7oo000 in loans
| OF the New York associated banks, max
| ing the total reduction more than S475,-
! 900. 600 since the peak was reached last
| October But London despatches were
by no means as encouraging as at the
week end. and when II was learned that
the British and French authorities had
refused to 60 any further with German
quibbling, the reparation problem came In
for more market discussion than at any
time before. There was evidently time for
acceptable German proposals before the
troops began to occupy the Ruhr VAL
ley, but the markets pretty well gave
up expectation that an eleventh hour
development would occur to head off the
infliction OF penalties. That the finan-
cial markets in this country and abroad
felt that the situation would not be
made much more difficult than 1t has
been all along was indicated not only in
the foreign exchanges but in prices for
funded securities. French and British
Government issues on the Stock Ex-
change were firm instead Of heavy, and
the cables told OF a similar condition
\ OF Government issues in the London and
Paris markets. The local cotton market
\ closed steady with Saturdays last prices
after scoring a moderate advance In the
morning.
4 "A moderate demand for sterling ex-
change carried the check rate from
Ss9h to 3.905a before noon. and in this
period francs moved from 7.1s 10 7.25
cents. The mark rate edged upward
from 100 cents to 1861. The London
news caused these quotations to draw
back, but sterling closed fractionally
better than on Saturday, and francs at
Tie cents we're about the same as at
the end OF last week. Naturally. there
was rather more effect of the invasion
Y prospect on the German rate, which re-
ceded to 1.61 cents. The exchanges OF
\ Norway and Denmark were unsteady, as
they have been for a fortnight. Other
European rates were firm.
Those who expected easier money
rates because Of the improved bank po-
sition were disappointed. Call loans
were made al Z per cent. and there were
no changes or acceptance and time loan
charges