The New York herald., 1921-03-06
FINANCIAL NEWS
AND COMMENT
Stock Market Has Dullest Sat-
urday of Year-Reading
Rallies.

| Tho duilest business OF any Satslrday
during the year to date showed again
yesterday that the stock market was talk
ing slight concern in the momentous
negotiations In London. News that the
German Cabinet had refused to accede
10 the allied demands was received with
compls>ss apathy; in fact, the course of
| prices afterward was more firm than
heavy. whereas decline might have
been expected IL the thing had been taken
seriously. The financial community has
become so familiar since the ssrmistice
with the habit OF German politicians and
diplomats to protest TO the last moment
and then give In on arguments with the
allied representatives that the dispatches
from Berlin attracted no great atten-
ton. The foreign exchanges were altered
hardly at all from Fridays final rates.
sterling leaving off quarter cent lower
at S.S9A.
Most OF tho days light buying OF
stocks represented covering of short con-
tracts. AS offerings were scanty the
effect of moderate bidding was a firm
price trend with some fairly strong
spots Atlantic. Gulf and West Indies,
American Beet Sugar. Reading and three
or four others advanced point or more.
Rails were extremely dull, but nowhere
was any pressure discernible. 1t is in
dlcated IL me decision of more than 100
roads to return to the pre-war methods
Of dealing direct and individually with
labor that the movement toward cost
reduction Is rot to be allowed to lag. If.
as the railroad managers indicate, q
part of the campaign is to be an early
reduction Of freight rates, the support of
shippers and consumers Of goods Is likely
to come speedily. In such a period OF
uncertain and ragged business conditions
as there is at present every step toward
| lower selling prices will be valuable and
the cost Of moving goods from one To-
cality to another is powerful factor In
the situation.
Changes which could be considered
almost striking and indicative OF marked
Improvement were disclose by the
Federal Reserve statement covering the
entire system, at the week end In the
week before large increases Of redis-
counts and q s14,S0o,o 900 expansion Of
circulating notes Federal Reserve notes)
ceemed to forecast a further growth of
loans and fall OF the reserve ratio
Nothing Of the sort occurred. however;
on the contrary. there was last week a
decline of s54.70o.00O In rediscounts, a
decline of more than 100000 in out
standing Federal Reserve currency. a
reduction OF s44. 100000 In net deposits
and gain Of sls.70o.000 In total re-
serve. The resultant advance OF nearly
l per cent. in the ratio OF cash to note
and deposit liabilities carried the figure
to sos per cent. the highest In more
than eighteen months
Federal Reserve no tes in circulation
are now the smallest in aggregate since
March IL OF last year. which can be
considered as a measure of business re-
Reserve Bank reported an advance OF
its reserve ratio from 40.5 per cent to
42.2 per cent. which Is the highest since
September "a of last year. Member
banks OF the New York district re-
duced their rediscounts of notes secured
by war bonds to the extent Of sls.7o0.-
COO and other rediscnunts receded s16.-
100000. The aggregate reserve In New
York increased s232oo.00o. while Fed
eral Reserve notes outstanding increased
SIS. coo, 900. Except for that last item.
improvement was general With prepa-
rations under way for the March 15 set
/ tlement. the bank showing was an
Y agreeable surprise.