The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-01
FINANCIAL NEWS
AND COMMENT
Rail Stocks Heavy, Some Turn
ing Waak-Call Loan Rate
Advances to 8 Per Cent.

The financial community had Syester-
ana an unsteady tone OF prices inSstoclSs,
foreign exchange, cotton and grain
seemed 10 reflect indecision overvthe OUT
look. In the case of the foreign ex-
changes It appeared as Trough tho fac
tor having closest application 70 them
acted to bring weaknesses into ydealings.
Naturally. the refiexes airDug' the Ger
man people over the repatriation agree
ment at Paris were not favorable to an
immediate acceptance by German lead
ers of a programme caIlinsyfor payment
OF more than $4,000. oO0, 900 gold. The
loud protest voiced by the German press
caused hesitation in purchases OF Euro
pean exchanges. A modeynte reaction
Of the morning was succeeded by
weaker trend in the AFTERNOON. Sterling
started the day at s.ssN, fractionaIly
or from Saturdays last quotation. and
got down TO 3.s3%. closing at that
figure. Francs were traded In first at
ia. and continued down TO cents
each. Marks worked OF from LIT cents
70 1877 cents. SWISS Holland and Scan
dinavian quotations were heavy.
The second subject for study lay In
the presentation OF railroad contentious
before the Labor Board IN Chicago and
had a more definite application to stocks
than did the reparations' situation. W.
w. Atterbury. spokesman for railroad
employers. made II clear that the car
r,ers wanted an early settlement OF the
ware question. and hiss suggestion for
complete abrogation OF the wartime
agreements was sufficiently pointed and
concrete to indicate that tho rail man
agements have prepared campaign
which they mean to push with all ex-
ned,rion possible. The railroad en-
ployers are seeking to get back TO the
basis where they stood in dealings with
labor before the Adamson law went Into
effect They want TO avoid the delay
which would be unavoidable If time were
taken TO thresh out reasons why the ma
tional agreements should be maintained
in part or strapped as step toward Q
wage readjustment Of peace time. Quite
possibly the employers are asking for
more than they expect to get; certainly
the labor organizations are going to be
heard and they have been able In tho
last three years to show power In arsa-
ment. Interesting speculation lies In
the question whether the unions will be
unbending at time when wage reduc-
lions are actually proceeding. IL not un-
der that name then in a cutting down OF
working forces that causes many work.
ers to receive nothing at all.
Railroad stocks were heavy and some
turned weak before the end OF the day.
The market senses a sharp controversy
and It is not strange that speculators
and investors elect to act cautiously In
period of uncertainty, especially as
inability to earn fixed charges under
present conditions of costs and traffic
Is asserted by representatives OF the
roads. The entire market became heavy
In the afternoon. when the third sub
feet OF interest came to the attention OF
the Street in an advane Of the call
loan rate to per cent This was tho
highest quotation since the week OF No
vember 20, when the call loan market
was passing out OF month Of to 10
per cent. rates. A reason for that
stiffening OF demand money could be
found In last weeks fall OF more than
$50, ooo, 900 IN demand deposits among
Clearing House banks here and In the
New York Reserve Banks strengthen
ing OF It's position by heavy sales OF &C
ceptances to other regional institutions.
The rapid outflow Of new securities In
the last ten days has also had bearing
upon the money market, for those now
bonds and notes have not all found their
way into the hands OF ultimate owners.
| Cotton declined nearly half cent
pound. Wheat futures declined to IN
cents In Chicago and corn closed lower
on the day.