The New York herald., 1921-08-19
FINANCIAL NEWS
AND COMMENT
Stock Prices Move Irregularly,
but Rails Continue Firm
Call Rate Eases.

Price movements in all the markets
were rather monotonous yesterday, the
changes OF stocks being too irregular TO
Indicate that new forces were at work
in the trading. Railroad shares recorded
4 the firm tone which has been maintained
all Of this month with the exception Of
4 two or three days, but decidedly ir-
regular front was presented by manu-
featuring company stocks at all times
and one point of weakness showed that
the bears could get action by a little
concerted selling. That point was the
automobile stocks, Studebaker dropping
back nearly points in the afternoon
after displaying firm tone In the morn
ing. Chandler Motor was another weak
issue. The explanation for these ro.
actions evidently lay In several exten-
sive price cuts in the automobile field
this week. which were not altogether
expected in financial circles because
many Of the prominent companies had
reported moderately good business dur
ing the summer.
The railroad stocks were helped by
dispatches from Washington which sug-
sested that the head Of the War Finance
Corporation was laying plans for rails
ing funds for the carriers in all con-
fidence that legislation would be passed
by the Congress before it should ad-
journ. II is safe TO say. also, that bank
ers began considerable time ago to con-
slider the outlook for assisting in the
sale of securities which, either dire.;ly
or indirectly, will represent securities
turned over by the roads to the Gov
ernment but all this, of course, is pre-
supposing that the Townsend bill is en-
acted into law. The outlook for an ac-
tive bond market in the autumn months
is being strengthened weekly by the
position of the Reserve system whose
steady gain in cash and shrinkage OF
loans forecast easier money conditions
when crop moving demands become less.
The statement of the Reserve system
for the last week showed a gain of SEA-
$4,000 in gold reserve. a contraction of
S11.313. 900 in bill holdings and a de-
~AAiC - |A''ATSsVVV All OutSIdHuiIb nc-
serve notes. which. while offset to
small extent by an increase of SS,777. 900
in deposits. was sufficient TO send the
ratio of cash to note and deposit liabili-
ties from 60 to 65.S per cent, a new
high point for more than three years.
The cutting down Of redscounts by
member banks has reached a point
where totals held by the consolidated
system are approaching prewar levels.
before extraordinary financing caused
them to swell rapidly. Thus rediscounts
secured by United States Government
obligations, amounting to 1859. .cs9 900.
are the smallest since the week of June
8, 1918, and other rediscounts are at the
year. The New York Reserve Bank last
week made the rather remarkable gain
of nearly s16.000.000 in gold through
the intra bank settlement fund. which
indicated that further progress had been
made BY interior institutions in reduc-
ing obligations here. The gold reserve,
all told. expanded s29,293.ooO and as
bill holdings receded $4,000, 900 and
both deposits and circulation were
smaller than they we're in the preceding
week, the reserve ratio went from eeg
to 1872 per cent.
Call money was 5h per cent. for loans
made on the New York Stock Exchange
in the afternoon, the rate easing after
most OF the days requirements had been
met. The foreign exchanges disclosed
no new features, sterling advancing
moderately at the same time that marks
eased off.
The grain market evidently is enter
ing the period when pressure from the
new crops viii become more and more
OF a price factor. Wheat futures fell
/ 2& cents a bushel and corn and oats
Y n Iourer Iayaia