The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-04-02
FINANCIAL NEWS
AND COMMENT
Railroad Difficulties Put DAM
per on Stock Trading-Bank
Clearings Large.

The stock market brought forward
yesterday little in the way of new in
fuences which lent themselves to dis
cussion in relation TO the Industrial and
business situation. In fact the grain
market was more interesting and a
heavy tone of railroad bonds showed
that the trend of wage and rate dis
cussiou was finally having some reflec-
ton among funded securities. A 4 TO )
cent decline of wheat futures in Chicago
was directly resultant from forecasts OF
the Forthcoming Government crop re-
port. which is expected to show a ma
terial Improvement of the winter acre
age during March. In it's progress down.
ward from s1.211a to s1.14A a bushel.
the May contract disclosed a close
enough approach TO dollar wheat to en-
phasize the effect that last years large
carryover was having on speculative cal
culations in the face of good new crop
prospects.
The chief points OF attraction in stocks
lay in struggles of the shorts to extricate
themselves from a difficult position in In
ternational Harvester and United Drug.
These issues advanced more than 3 and
4 points. respectively at the same time
that sugar. tobacco and several OF the
steel shares were inclined toward lower
levels under professional pressure. Trad
ing was rather dull throughout the day
While call money ruled at 6ia per cent,
there was no recurrence of the Z per
cent. rate Of Wednesday and Thursday,
and plenty of funds were obtainable at
6 per cent. in open market borrowings
in the afternoon. A fair measurement
of the amount OF funds which is being
shifted at this important interest and
dividend date was supplied in yester-
days bank clearings which. at $685.
100000. were s132.000.000 greater than
on March 16 and $50, 0oo.o 900 larger than
on March II. when the Governments tax
payments and interest disbursements
were being handled. While operations Of
tax and Liberty bond interest date are
comprised to degree in bookkeeping
entries, the contrast of banking turn
overs of the middle of March and of
April are, nevertheless. of interest
The tendency of call loan rates should
be toward ease next week.
OF all the serious matters of readjust-
ment commanding the countrys atten-
ton none surpasses in Importance the
railroad situation. 1t may be that the
Washington attitude has been somewhat
overemphasized in the gravity of news
dispatches but the fact is patent to all,
nevertheless. that something must be
done quickly 10 relieve burdens that
many roads cannot stand much longer.
There Is nothing surprising in the prac-
tically unanimous movement OF railway
unions TO refer rage settlements to the
Railroad Labor Board. That Is what
the board was formed for: but it is a
question now OF hurrying along the ex-
animation OF both sides OF current con-
tentions and getting an early settlement
Of the most vital subject related to eco
nomcal railway operation. Business is
waiting for the result. and until the car
riers see their way out 1t is hardly pos
slble that any lasting betterment Of
railway securities can be expected or of
many manufacturing company shares
for that matter.
The foreign exchanges reacted. ster-
ling selling down to a point about 81
cents below the maximum quotation OF
the week. Money rates were somewhat
easier in London than they were on
Wednesday. but IT was probable that the
threatening coal strike over there tended
to stimulate speculation in sterling for
the fall. Cotton prices edged off slight
ly. without presenting any really weak
points.