New-York tribune., 1921-04-29
Price Advance
Is Resumed in
Stock Market
Reduction of English Bank
Discount Rate Factor
in Recovery; Foreign
News Has Little Effect

wall streets market in speculative
securities, which had sustained a set
back on Wednesday, regained it's
equilibrium yesterday when the recov-
cry was resumed in many leading
issues The continuity of the forward
movement having been broken In the
preceding session, however, dampened
the enthusiasm Of the bulls and the
moro conservative feeling abroad re-
hected in An irregular movement in
prices, although the majority of stand
ard issues closed with net gains. Deal
ings were on about the same scale as
the day before.
The market had number of inter
esting developments to consider, chief
of which was the news, conveyed in
the early morning cables from Lon
don, of reduction in the minimum
rate of discount of the Bank of Eng
land from 7 to 6n per cent the first
change in more than a year. While
not entirely unexpected the announce
ment was made much Of as construc-
tive argument in speculative circles.
Bankers held that the reduction re-
flected the stagnant condition Of Brit
ish commerce and industry, but
thought it would have a favorable cf
feet upon sentiment. 1t is the first
move of any. Of the great state banks
on the other side to lower off dis
count rates and indicates that the
credit position Is relaxing. Discussions
in Wall Street circles naturally took
up the question of what the policy of
the Federal Reserve Board is to be
toward discount rates in view of the
steady improvement in the banking po-
stion in the United States during the
last few months. Opinions differ as to
whether reduction in rates should be
made here, although many leading
bankers believe that on the basis Of
present conditions such a step could
be taken without the danger Of re-
newal Of infationary tendencies, and
that to lower rates, say from to 6
per cent, would prove beneficial to
business in a sentimental way.
The Federal Reserve systems con-
solidated statement makes its appear
ance to-day for the first time on the
basis Of the new policy of the Reserve
Board of making public the weekly
reports as of the close Of business on
in the past, and it shows further pro-
nounced betterment. The ratio of re-
serves to Federal Reserve notes and
deposit liabilities combined of 55 per
cent, against 54.1 per cent last Friday
and 42.4 per cent a year ago. This
was accomplished as result of
combination Of two leading factors, one
the heavy increase In gold holdings
and the other the reduction again in
borrowings by member banks. The Fed
eral Reserve Bank of New York In it's
statement showed ratio Of 55.5 per
cent, against $50 per cent on Fri
day and 1919 year ago. Here in the
New York district member banks re-
duced their borrowings by approx
mately $36,OO0,O0O.
Despite the announcement from Lon
don of the rejection by the Allies of
the latest German offer on reparations.
development that partially offset the
favorable factors in the stock market,
British and French exchange rates
were strong, both closing higher, with
sterling selling above s3.95.
The selling of rail stocks which fol-
iowed the news Of the reduction in
the Pennsylvania Railroad dividend
late Wednesday appeared to have run
its course, but this department Of the
market acted we'll throughout the day.
Railroad reports for the month Of
March show improvements as q result
of the economies in operation that
have been put in effect.