The New York herald., 1921-11-18
FINANCIAL NEWS
AND COMMENT
Stock Trading Active on Both
Sides--Rails Gain-Bank
Loans Decline.

Stocks. were neither strong nor weak
in yesterdays dealings. but some rapid
movements among industrial and rail-
road issues indicated that traders were
active on both sides of the market. A
railway development received with sat
isfaction was the resumption OF divi-
dends by the Hooking Valley, the greater
part OF the . per cent payment to go
into the treasury OF the Chesapeake and
Ohio Both OF these roads omitted their
dividend last June at a time when the
| outlook for profits was uncertain and
many railways were striving to conserve
cash. Chesapeake and Ohio shares ad-
Va1ced more than three points after the
news was received and held most of
that gadn until the end of the session.
On the whole railroad stocks were
more prominent than were others, the
influence OF the proposed 10 per cent. cut
of freight rates on agricultural products
being interpreted as n constructive
| measure, which showed confidence
among railway managers that wages
; would be marked down again in due
course. 1t will be interesting to see
whether that step Is noted by the agri-
cultrai bloc in Congress. which has not
been warm in support Of the railroad
debt funding measure. Although rail-
shares advanced easily during the first
half Of the day. it was plain later that
| traders M
rise. The rate cut by itself was con-
elusive of little besides the evident pur-
pose OF the managers to assist the
farmer shipper during the next six
months and contained no suggestion that
the carriers were in position to sane
ton general rate reductions.
Again numerous preferred stocks were
carried upward a point TO three points
and there were decidedly sharp bulges
here and there among Junior shares.
namely In American Telephone and
Telegraph. Haskell & Barker, Pullman
and f%re Marquette. Special influences
were behind those gains OF about two to
| three points. and while they were ad-
|
outflow OF new short sales made the rest
OF the list highly irregular. Can money
was again at 4 = per cent for all loans.
1he reserve statement for the week
disclosed further large declines of loans.
an incHase OF gold holdings and a size
able contraction Of circulation. In con-
sequence the ratio of cash to note and
deposit liabilities moved forward to 7I.S
vsr cent, new high point for the year.
,f6ill holdings receded more than S69,-
J 100000, the item contributing most to
Il that change being a falling off Of S26,-
!, coo,o0O in red!scounts secured by mer-
tcantile paper. The seasonal demand for
accommodation at no time this autumn
made FOR such expansion Of reserve bank
loans as was seen last autumn, because
OF business reaction and general defa-
tion, and this weeks statement suggests
that the return flow Of currency and fall
! OF loans is proceeding more rapidly than
vas expected two months ago. The re-
I serve ratio Of the local reserve bank
gained 81 per cent, assisted to q large
degree by an increase OF nearly 50,O0O,-
600 In gold held for account OF tho re-
servo agent. Bills held in New York
declined sS3.soo. 900.
] Sterling exchange held abreast of
Wednesdays rise to the 81 level. easing
at the close to 3.e95s just as it did the
day before. The exchanges were dull
and it was noted in banking comment
that business in several greatly depreci-
ated exchanges has been tending TO
slacken off for considerable time The
Bank OF England's reserve ratio during
the last week was carried from 1927
per cent. to 1s.47 per cent, chiefly be-
cause of a fall OF circulation Tho Bank
of Frances report showed a reduction
OF G57.00o.000 francs in circulating
notes, continuing the movement which
began last spring and has made prog
ress pretty steadily ever since.