New-York tribune., 1921-03-13
More Cheerful
Tone Tends to
Check Selling
Early Irregularity Followed
by Recovery, and Impress
sion Prevails That Press
ure Has Been Halted

A more cheerful sentiment prevailed
IN stock market circles yesterday. The
selling movement which so unsettled
the general share list the preceding
session appeared to have spent its
force for the time being After early
uncertainty, when prices yielded in the
case of many industrals and touched
new lows, the maHlet turned firm un-
der leadership of DC rails, and closed
with the majority of issues showing
net gains. The rail group had been
one of the weakest spots in the market
on FRIDAY, and the better tone here in
dicated that the selling had been over
done.
There was nothing in the outside
news Developments to account for the
generally better tone after the initial
uncertainty of the market The morn
ing's news suggested the possibility of
trouble as a result of the widespread
wage reductions by the railroads. How
ever, confidence in important banking
quarters that the situation will be ad-
Justed without serious results created
n better sentiment and was responsible
Tor checking the selling of the rails.
Some of the selling of rails on the de-
chine of the day before undoubtedly
was of speculative origin, and the ac-
VIVA VI viz IsilA SIOlP yesterday SuG-
gested the covering of short contracts.
During the last week, however, there
undoubtedly has been much real liqui-
datlon of rail holdings by individuals
who have been discouraged by the com
bination of adverse factors confront
ing the carriers at the moment.
While Union Pacific, Southern Pacific
and Atchison displayed pronounced
strength. recovering much of the
ground lost the previous day, there
were exceptions to the upward trend,
pennsylvania and Reading, in particu-
lar, dragging back
Before the market became stabilized
IN the final hour the pressure of selling
against number of the prominent
speculative industrials forced them to
new lows. Mexican Petroleum, for in
stance, dropped to the lowest price in
three years when it sold at IS, but
it came back with increasing vigor at
the finish, closing with a net gain at
145$s. Atlantic, Gulf {, West Indies,
which have been weak of late, acted
lowed reports that a large independent
Oil company is negotiating for control
Of the Atlantic Cuffs oil properties.
In the cotton market prices rallied
after an early decline. The grain mar
kets moved in similar manner The
foreign exchanges were slightly higher
end sterling, at $3.90}4, showed a net
gain on the week of full cent to the
pound.
The weekly bank statements gave no
important reflection of the effects of
the approaching tax payments upon
the position of local institutions. New
York Clearing House banks in their
statement as Of the close of business
yesterday showed a contraction of $62,-
$4,000 in loans and discounts and
drop of S28,025000 in net demand de-
poslts Surplus reserves increased
S30,700.280 to S34 ,6S3 $50. In the case
cf the Federal Reserve Bank OF New
York she ratio of total reserves to de-
posit and Federal Reserve note liabili-
ties combined dropped from 422 per
cent TO Alb per cent. The bank gained
OF gold, but member bank borrowings
on rediscounts were somewhat larger