South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-01-01
1921 WAS YEAR OF
REIMBURSEMENT IN
SECURITY MARKET
Liquidations Begun in 1920
Continued With Big Declines
In Some Issues.

NEW YORK. Dec. ol-Nineteen
Ahnudred and twenty-one was year
yof liquidation and adjustment in all
security markets and in operations
generally affecting world finance and
business. 10 has been preceded By a
year or continuous Liquidation and
decline in 1920, but az the end OF thai
year the market developed stronger
conditions. which were maintained
until well into the first part Of 1921.
II was not long. however. before the
changed conditions in business. dis
appointment over promises OF reduc-
ed labor cost. and a strange attitude
on the part Of banking managers Of
the country 20 continually contract
banking accommodations by the
payment or Indebtedness TO the fed
eral reserve institutions. practically
choked off and everything IN the
shape OF an improving tendency, and
was effective in causing the lowest
prices for over two years 20 be es-
tablished fn the security trading
groups generally during the spring
and summer months.
steel Anchors List
Important issues like the leading
steel indust-ials led the way for the
general list but United states steel
proved 20 be an anchor holding the
market generally in a safe position
That leading industrial from a high
OF the year OF SEA early in May.
yielded 20 I0A late I'm June. but al
though It's statements fot the sue
!. ceeding quarters of the year showed
J steel business az its pOWest ebb since
1904. the market position of their
stock improved until at the end OF
the year IL was back 10 around the
highest level
There were other industrials how
ever. that suffered a crumblins away
Of values without prospect OF recov-
cry in the near future. Among these
was American sugar refining, wlich
sold down from Sc in January TO a
new low record OF a. g in october
In the preceding year this stock has
sold as high as 1928. The changed
conditions had a more direct inhu-
ence on the stock of this and other
sugar issues than on any other in
dustrial group. and was the definite
result Of the collapse in the sugar
Industry generally which was indi-
Gated by the decline in the price or
refined sugar 10 below cents a
pounE after starting the year al
cents a pound and having acquired
at prices apparently repres,N ting a
value OF around 30 cents a pound In
1920.
After the low prices were recorded
IN the period ranging from early in
June to near the end OF August, Sc
curitv values started upward. The
situation was steadied at frequest
intervals by evidence OF a huge ac-
cumuIatiOn of funds seeking invest
rnent which could be definitely meas
ured by over-subscriptions 10 various
| issues of short term notes and long
term bonds The overflow Of sub
scriptions TO these bond issues.
The overflow of subscriptions 20
the bond issues was diverted IN the
latter part OF the year 20 the buying
Of the better class of dividend pay
fnr railroad shares. Many of theS
issues moved up with a good deal OF
viror I'm the last two months of the
YEAR. but did not reach the level
prevailing a year ago. a feature OF
milwaukee and st. Paul from 81 on
Jan. u. dropped 20 IN late in De
cember. the lowest price of that
stock since 1877.
The money situation was changed
from one OF imitation 10 one OF de-
fation. Total gold reserves or the
Federal Reserve banks last Thurs
dav were S2,S69 500 900 against
s2.O5s.38s. 600 on the correspondents
dav in 1920. Federal reserve note
liabilities and deposits combined al
the end OF the year was III per
cent against asa per cent year
ago. The twelve Federal Reserve
hanks now hold 97.2 per cent cold
against note liabilities compared
with BO.5 per cent year ago.
In the last week Of the year an ad-
vancins tendency was partly nulli-
fed by heavy sales OF securities 70
establish losses in compiling tax re-
turns.