The New York herald., 1921-08-02
FINANCIAL NEWS
AND COMMENT
Stocks Gain Enough in Morn
ing to Withstand Selling
Pressure in Afternoon.

Stocks advanced with sufficient vigor
during the trading OF yesterday morning
TO withstand a selling movement in the
afternoon without losing all of their
early advances. In fact, the list con-
tanned numerous gains of half point to
more than a point at the close. the rail-
road issues standing out prominently.
transactions was the marking UP of the
call loan rate from Az to and then
to 5 u per cent. which tended to hasten
realizing sales and also caused more
lrregularity in bond prices. The action
OF the money market, however. was be-
'ieved il banking circles to reflect little
besides the usual shifting OF funds at
the end OF July
Dividend and interest istrlbution on
August 1 is substantial. THE banks
also have prepared for sizeable with
drawals of Government deposits and
payment. for s3O0.ooo.Oo0 or more new
Treasury certificates will fall due short
iy. The present transfers in and out of
seasonal transactions will be completed
in few days. and as the proceeds of
dividend checks and coupons are de-
posted fairly easy money is expected
before the end OF the current week.
Collateral tine loans were unchanged
yesterday. accommodation being offered
at 5A and s per cent. with some loans
reported on basis even lower.
Railroad. steel and sugar shares re-
ceived more attention than the others
The sugar market contains aspects far
different from those which dominated 1t
fortnight ago. A reported query by
Germany for heavy tonnage in Cuba,
coupled with recent news that the bur-
den of raw sugar lowering over the mar
Eet had been reduced, measurably urged
the short interest in sugar company
stocks to retire part of their commit
ments.
As far as steel shares were concerned
the action of prices suggested that
spectators were keeping a wary eye on
reports from the production centres. 1t
Is automatic that when mill activity be-
months even a moderate buying move
nent may cause a sharp advance Of the
percentage increase of output.
The railroads have been putting in
fair amount Of contracts lately and
larger ones are expected as soon as Gov
ernment arrangements for expanding
railroad cash are completed. Dispatches
from Youngstown yesterday told Of en-
,arging activity of mills In that district.
and the ease with which steel stocks rose
IN the morning and their stability In the
afternoon indicated that the movement In
short covering was fairly insistent.
The rails. however. were again the real
feature OF business. Very few ended the
session with declines, and Great North
ern preferred. Northern Pacific and
Union Pacific, among others, were strong
throughout the day. The estimates of
net earnings in June for the Glass ]
Dads are being revised upward as ad-
ditional reports appear. and the heavy
movement of grain to market forecasts
good earnings results in July.
AS the season Is approaching when re-
suits of the crop year will count heavily
in business activity. yesterdays Govern
ment report on cotton was important A
condition OF 64.7 per cent as of July 25
was sensauonally low. showing a decline
OF AZ per cent. since the June statement
vas issued This setback was more than
l per cent. greater than the normal de-
terioration for July. and the plant con-
dition stood more than per cent below
the ten year average season.
A crop yield of no more than $500. 900
bales is looked for on the basis of the
statement, compared with 1896. 900
bales last year. A sharp advance OF
futures quotations was the natural prod
uct of the surprise which the Govern
ment report brought TO the trade.