The New York herald., 1921-06-24
FINANCIAL NEWS
AND COMMENT
Sales Of Particular Issues Give
Stock Market Appearance
of Weakness.

The stock list was subjected yesterday
10 what might be called selective selling,
persistent output of short sales. The
feeling persisted also that considerable
long stock was being liquldated. either
as the result of impaired margins or
through the necessity of holders to OBJ
tain funds for use at the end OF the cur
rent month. The turn into the second
half of the year usually carries with 1t
important dividend and interest pay
ments as we'll as settlements OF CONNER
cial obligations. While the general ap-
pearance of the market was one OF
weakness throughout the session, there
were strong spots among the oils and
sizable recoveries of industrial shares
which lately had been hammered hard,
notably a 5 y point advance of Pierce
Arrow preferred. Call money remained
at per cent.
The stock market supplied practically
the only interesting field of an unusually
dull day in matters financial. Now that
one or two troublesome situations as af-
fecting the financing of commercial un-
dertakings outside the country have been
taken care of, the business and banking
communities are awaiting developments
in the markets for goods and commodi-
ties. The reduction OF the Bank OF Eng
lands discount rate from u to per
cent. announced yesterday. is looked
upon as an indication that conditions af-
fecting coal and textile industries In the
British Isles are gradually improving,
although nothing has occurred as yet to
forecast a genuine revival of British
business. The fact that the steel trade
and other lines of Industrial endeavor
are looking fon dull summer has. nat
urally, had some effect upon forward
looking plans of American merchants. In
respect both to domestic and foreign
transactions.
The present absence OF a progra mme
for business expansion before autumn
prices of stocks. Steel shares yesterday
reached down to new low levels. for the
appa rent reason that short sellers found
slight opposition from buyers who In
normal periods are wont to pick up
stocks for long pull after such a
decline as the market has had. United
States Rubber, Goodrich and one or two
other rubber and tire company shares
declined rather sharply. and there were
substantial recessions In certain oil and
railroad issues of point or more. But
Mexican Petroleum, Texas Company and
Royal Dutch were strong the advance
of those issues while others of the same
department were drawing back showing
that trading operations were not directed
by general deductions In regard to In
dustries as whole.
The extraordinary rebound of "a per
cent. in the Federal Reserve ratio OF
cash to deposit and note liabilities dur
ing the last week showed that as soon
as the burden entailed in the mid month
government operations was nfted the
forces making for liquidation immedi-
ately set to work. A fall of more than
s34. 4.000.0 900 in outstanding reserve notes
was a feature. In New York the re-
marlSable upturn of SO per cent in the
reserve ratio was recorded. The deduc-
ton from the weekly statements was
that the easier tone of money rates bids
fair to become more pronounced iater
on.
Cotton lost ground on a renewal OF
liquidation. but wheat prices worked
higher In the foreign exchange market
fall of 90 points in lire seemed to
make belated reflection OF speculative
activities. based upon the fact that the
Italian Government was no longer con-
trolling rates. But the fact that re-
strictions have been lifted speaks well
for conditions in italy. Sterling de-
clined ~ cents TO the pound. closing
at s.7s%.