The New York herald., 1921-05-25
FINANCIAL NEWS
AND COMMENT
Industrial Shares React-New
Lows for Year-Foreign
Exchanges Recover.

Til, SsooA market contemplated yes
blue glasses, owing TO the passing OF
several important dividends, and the
industrial share list suffered a sharp
and abrupt reaction. 4 decided improve
rnent in political affairs, centred on
the Silesian difficulty. had no influence
in checking the decline. which reached
its most extensive phase In closing
transactions. Nor was there any sign
OF momentary support to prices from
a forecast in Chicago dispatches that
the Railroad Labor Board would order
on June l wage decreases OF 10 to Is
per cent, according TO the classification
OF employees affected. Manufacturing
shares in many cases declined ? to Z
points, several new low records for the
year being established. Call money
moved up from 81 to per cent in the
afternoon .M
There was no question but that the
speculative fraternity was surprised at
the elimination Of tho Central Leather
preferred dividend and also at the de-
cisicn OF the Remington Typewriter
Company's directors to pass the pay
ment on its preferred stocks. Those
corporations were believed to be coming
through the spring slump Of business In
shape to permit returns to owners OF
senior stocks. Reports from the leather
tr-oI do op Iota .,al IVA 81
demand as compared with result. in
January and February. IT was thought
besides that the great leather company
would hesitate to disturb a dividend
which had been maintained for Hftcen
years, particularly as the industry
seemingly had discounted the worst Of
this years trade readjustment and was
headed toward better things. What in
fuenced the directors, apparently, was
the desire TO get back to better asset
position through the conservation OF
cash. sound and conservative business
policy which refrains from any desire
10 gamble on future prospects. The
management had seen 100000. 900 sur
plus melt to less than s225,ooo In little
more than two years through rigorous
writing down of inventories and other
results OF the business slump, which was
sufficient basis for saving funds wher-
ever possible.
AS TO the tentative suggestion about
the railroad labor ruling, the question
may be raised whether the figures men
toned would have appealed to the mar
lset as a constructive item II other fac
tors OF the day had been cheerful The
wage increases of last July were csti-
mated to add $500, 900. 900 to the pay
roll when spread over the number of
men then employed. At present the
programme OF reducing working forces
TO the bone has cut the number OF en-
ployees more than 900 throughout
the country and thus IL Is evident that
Is per cent reduction Of wages. which
probably will rot affect all classes OF
workers at once. viii not result in saw
ings TO tho roads OF an amount any
whore near the total of the advance Of
last summer. II is to be borne in mind
however, that the advance estimates in
Chicago arc not authoritative and the
real significance of the boards action
cannot be calculated until full details
are available.
The foreign exchanges huctuated over
broad ranges, an initial decline of stcr-
ling carrying the sight quotation down
TO 3.92ia, whence a further easement
to 3.92 was reported for a moderate
flow of transactions. Later a consider
able volume OF buying orders came into
the market, originating In New York
and London, which eliminated all Of the
2st cent decline and pu: the final rate
n cents above that Of Monday. Francs
recovered from their early fall and left
Off about IS points higher than on Mon
day. and most OF the other European
rates gained a trifie The movement
Of rates all around appeared to be mere
~ a natural recovery from the heavy
decline OF the preceding session.
Wheat gained 5ia to more than 8
cents a bushel at the expense OF. a
troubled short interest. Cotton was Arm.