The New York herald., 1921-01-19
FINANCIAL NEWS
AND COMMENT
Stock Market Has Dullest Day
Of Year-Bonds Still Show
Quiet Strength.

A full picture OF yesterdays stock
market can be presented I'm the state
merit that IT was the dullest day OF this
year. The irregular and unimportant
movement OF prices was fully In keeping
with the lack of trading interest. In
bonds there was also a shrinkage of
business in contrast TO recent sessions,
but In this department the same quiet
strength was In evidence which marked
the first fortnight OF the month. Liberty
bonds in some cases gaining from half
to three-quarters of a point. One or two
traction bond issues. led by Interborough
Rapid Transit 5s. advanced above Mon
days prices. and others retained most
of the Improvement which followed
initial indications OF action at Albany
favorable to the contentious of the
operating companies. The abrupt bid
ding upward of several petroleum stocks
suggested the resumption of pool opera
tions, which would be a natural product
Of easier money conditions but dependent
for their success upon the continuance
of relaxed call and time loan situation.
The call money rate was again 6 per
cent, and a somewhat firmer tone was
discernible in offerings outside of the
Stock Exchange. as the rate there was
also per cent. While time money was
unchanged, from and 6h per cent. it
was noted that some Of the brokers had
L., ,,t {v, aff sol hat
loans on mixed and all industrial coll
lateral. the latter being quoted at and
per cent.
Developments in international finance
foreground OF Wall Street thought than
during recent weeks, when matters in
the domestic market attracted most at
tention. The fact that the revival OF the
War Finance Corporation has brought
forward very few applications for assist
ance in export trade financing is not sur
prising to local bankers, who never be-
lieved there would be a rush for Gov
errnnent aid under the prescribed terms.
But the reiteration from highest f1nan-
cial quarters of the need for largely in
creased credit to foreign buyers from
private sources is stirring up fresh in
terest. especially as the strength of the
-creign exchanges in recent days eug-
gests an Improvement in the purchas-
ing power of foreign countries. IT is
probable that before many days have
passed the completion OF large scale for
eign Government financing In this coun-
forts which the borrowers are making to
stimulate industry among their peoples.
Foreign exchange, while less vigorous
yesterday than on Monday, disclosed a
firm undertone. which was hardly more
than ruffled by a substantial flow of
speculative realizing sales.
Sterling declined III cents, with a
Anal rate of SIS. but the feature of
dealings was contained In the recovery
that followed a reaction of fully cents
In the morning. In a market subjected.
as London exchange has been. to spacu-
lative influences. II would be difficult to
determine exactly what causes fiuctua-
tions, but II appeared as though traders
with profits on paper were moved to
convert them into cash because of ru-
mors attached TO the sailing of Ambas-
sador Geddes from New York. AS one
factor behind the advance of rates this
year has been expectation of negotia-
tions over a plan TO fund the British
notes in the United States Treasury, Il
was easy to think that the British rep
resentative had been called home to ie-
port on the situation, from which t
could be deducted that delay would oc-
cur. Francs and marks receded with
sterling, but scandinavian rates main
tained firm position and there were
moderate advances In Spanish, Greek
and other European quotations.
Cotton declined again and the grain
markets were weak, corn receding nearly
2 cents a bushel The downward ten
dency of wheat and corn in the last few
days shows that liquidation of farm
stocks is proceeding steadily.