The Washington herald., 1921-02-06
STOCKS INCREASE1
In SHORT PERIOD
DUE TO COVERING
Sterling Exchange STEADY
With Light Trading and
No Demand.
MEXICO A FACTOR
Report That Morgan May
Take Interest Proves ~
OF Benefit.

NEW YORK, Feb. 5-The actual
bank statement today showed Sur
plus increased S6.22I.s2O. loans m
creased S3,OS5,OOO and net demknd
deposits decreased 4Ss6.OOO. The
average statement showed surplus
increased '5,95L25O. loans increased
H,254,OOO and net demand depoSIss
Increased Sl7.lSI.OOO. asr
The Federal Reserve bank show
ed 3s.l per cent against $50 per
cent a week ago ratio Of total re-
serves to deposit and Federal RE-
serve note liabilities combined. Il
also showed 35.7 per cent against
36-2 per cent Of ratio OF total re-
serves TO net deposits after deduct
ing 40 per cent gold reserves against
Federal Reserve notes in circulation.
Short covering which began IN
Friday continued during the short
session on the stock exchange toTa%
and lifted prices slightly. Business
was on a slight scale less than y
quarter OF a million shares changing
hands. Dealings were almost en-
tirely for tho account Of profession
ais who did not care to remain
short over Sunday. Initial prices
showed fractional improvements
overnight. After the first hour soft
ness developed hut this was short
lived and the general market turn
ed strong in the late trading
Exchange Light.
Dealings in Sterling cNchang~
were on a very light scale. Quota
tions were slightly higher a. the be-
ginning OF business but essed OF
after the first hour. There was
stcadiness toward the close. dsufsDd
sterling being unchanged at the
end OF business.
The bond market was irregular.
Most recent issues which were con
siderod to have been placed at
slightly above TTicos warranted by
the market were slightly loWFf.
| Rails were soft.
! Reading shares were most sSiEe
I because OF announcement in thls
. column that the segregation -lsn
will be filed with the court on Tues
day. and dispatches from Philadel-
I Uhia stating that bankirE Interests :
thora confirmed this statrUe nj.
Reading second preferred. which
under the charter Of the company
may be retired with half common
and half FIRST preferred. was an
usually active and more than two
points higher.
The Atlantic. Gulf and west In
dies financing has been practically
Icomplcted- The comDany will take
two bites Of the cherry. that. Is
Ian II !,
tics announced which will not tcts
more than Sl3OOO.OOO OmcIsl an
nounCement is expected carly lhi'
week Stock OF the company VA
slightly higher yesterday. and tn,
short interest In the issue is under
stood to have been materially re
duced a. indicated by the fact ths
the premium for borrowing tn,
stock has disappeared
The existence of a good short IN
terest in different SneclaltieS MAJ
be CLEANED from tho fact that uTe
mIums are being charged on Scars
EOebuck. Crucible. and America
Sugar General Motors. Genera
| Electric and American Hide an
LeaIho~ preferred are lendinE fat
Reports that Thomas W Lauor'
Of P Morgan and Company, woult
60 to Mexico and st-aiChten ouJ-th
Mexican government debt were Re
sDonsihIe for increased activity an
strength in National Railways Q
. Mexico second preferred. which nd
vanced one point. Nj Lamont de
. MED in Washington that he ha
. been invited TO stralEhtcn out Ne A
. iCO's bond affairs. Mexican govern
o ment bonds were also active an
higher