The New York herald., 1921-10-07
FINANCIAL NEWS
AND COMMENT
Libertys Hit New Highs, Bears
Pound Oils and TObacc0s
and Exchanges Rise.

| Bonds took the place OF stocks In the
foreground of the financial markets yes
ierday, a buoyant buying movement
carrying some OF the Liberty issues
fully three-quarters Of a point higher
.han their quotations Of Wednesday at
the same time that numerous corpora
tion securities were bid upward with
considerable vigor. The Third A.. per
cent Liberty bonds were very close to
q at the close and all Of them recorded
new high records for the year. The
tendency Of money to grow easier has
found so complete a reflection in bond
prices that there has been hardly a re-
action worth considering since the mar
yet began to turn upward early in
August. and that. too, despite great
| output OF new notes and bonds. The
attitude which the banking community
IS taking toward the money and invest
rnent outlook is disclosed clearly in new
plans for sizable new foreign Govern
ment and municipal security offerings
in the near future. Call money was
4la per cent. for all of yesterdays loans.
II will be recalled that last Satur-
days statement of the local Clearing
Mouse banks showed that rediscounting
had been heavy toward the end Of last
week. reflection of which was seen
IN the Federal Reserve report yester-
day. rediscounts for members expand
ing more than $l9.00o.0oo. There was
also a growth OF $1,000. 900 In outstand-
ing reserve notes. and as the bank lost
more than s5o0oo.o0o in gold credits in
the settlement fund the reserve ratio
declined "a per cent. But the CONSOLE
dated reserve bank statement reported
the ratio Of reserve to deposit and note
liabilities the same as that of the pre-
ceding weck-69 per cent.-and thus in
the larger aspects II seems as though
the changes In New York were more
or less seasonal and suggested nothing
in the way of a Tightening money and
credit situation.
The stock market consisted for tho
most part Of a series of bear drives
against petroleum and tobacco shares,
with a diversion OF the attack OCCASION
ally out into the miscellaneous list.
American Sumatra Tobacco, as might
have been expected. went down moro
than 31s points as the result Of the
elimination OF Its dividend, and Mexican
Petroleum at one time was points
lower than it was on Wednesday. The
effort to cover short stock in the after
noon. however. found offerings none too
plentiful and there were sizabie rallies
which left the moro active shares highly
irregular. The market could be de-
scribed as neither weak nor strong. The
copper metal market appears to be re-
tanning its firm tone which developed
early last week and probably accounted
shares despite'th appearance OF one or
two producing company reports in the
last few days which were not satisfac-
tory reading.
the short account uncovered a strong
undertone of prices, and as liquidation
ceased somewhat abruptly in the morn
Ing quotations rallied 81 bale. Wheat
futures also improved. advancing IL
to cents bushei. 1t remains to be
seen whether the improvement OF COM
niodities was more than a reversal OF
the speculative position. n process which
comes along occasionally when selling
has been overdone. Reports from the
South indicate that bank loans have
been strengthened so far by the liquida-
ton Of cotton since September ! as TO
embolden the growers to hold of sup
plies from market when prices fall un-
der the 20 cent level.
The foreign exchanges advanced above
Wednesdays final figures with less
strength in sterling than had been seen
before. The Bank Of England and the
Bank of France both showed in their
weekly statements that large advances
had been made to the Government, evil
IDENTIFY connected with quarterly Treasury
operations. Presumably the knowledge
of pending demands was a factor In pre-
venting the Bank OF England from re-
ducing the rate OF discount recently, for
the reserve ratio was per cent. lower
than it was a week earlier.