The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-22
j. 6. MARKETS
FIRM DESPITE
ABROAD
Bank Reserve Ratios Show
Increase Cotton Futures
Reach New High Levels.
Judgment Suspended on
Invasion by France
by Associated Press

NEW YORK, Jan. 21.-Although
the financial markets have shown
themselves somewhat sensitive to
developments in the Ruhr crisis dur
ing the past week, their tone has
been notably steady. In most quar-
tiers this condition has been attrib-
uted to the many signs of good do
nestle business, to easy money and
to a philosophical attitude toward
the European situation.
That the counry's supply of funds
is abundant is testified to by both the
behavior of the money market and
the character of the federal reserve
bank statements, and to the extraor-
binary ease with which nearly two
thirds of billion dollars in new cap
ital issues have been absorbed dur
ing the first three weeks of January.
Holiday Demand PASSES
With both note circulation and de-
post liabilities at the reserve bank
showing sweeping reductions because
of the passing of the demand Incl
dental to the holidays and the year
end, and with reserves still growing,
partly because of additional gold inn
ports. the reserve ratio of the system
as a whole has risen from 71.3 per
cent to ISL during the past two
weeks. The latest ratio approx
mates that existing during the past
fall and is actually slightly higher
thqa that OF year ago. Meanwhile,
some 5000, o00,o 900 in new bonds have
been absorbed without injuring the
market for the issues already out
standing.
In the Industrial field the steel
companies continue to operate at a
rate slightly better than the best at
tanned last year. Manufacturing con-
sumers OF steel are increasing their
pr oduction schedules and as con-
sequence are anxious to place addi-
tional orders with the steel COM
panleS. AS the natter are NSAA cNS+NNN
up through the first quarter Of the
year, the tendency is for prices 10
harden and a slight advance has oc-
Cured in the heavier products. steer
in large quantities still is wanted for
building construction, railroad ma
terial and by the oil industry, while
the makers of agricultural imple-
ments now foresee increased activity.
Great optimism prevails in the auto
mobile trade, a record breaking year
being expected.
New High Cotton Prices
New high prices for cotton futures
call attention to decidedly firm spot
markets, both in the south and at
Liverpool. Prices at the latter center
have been persistenly strong all
through the past week, little atten-
ton apparently being paid to the
Franco German troubles. Al New
York the May future reached 2s.oo
cents, which represents gain or Il
points on the week and 1913 points
since the start of the year. what
ever the ultimate result of this move
n,ent may be on the market itself, it
is clear that the south has been
decided gamer. a circumstance which
has served to arouse interest in the.
shares of the railroads serving that
territory.
In most quarters there is dis
position partly to suspend judgment
on the French advance into the Ruhr.
II is felt that the occupation is an
economic injury to both of the coun-
tries involved and that the prospects
of collecting much of the pay of
reparations are poor Nevertheless,
there is a considerable body of opin-
ion in financial circles to the effect
that some such movement by France
was politically inevitable and that
after both parties have experienced
the consequences they may accept
other solutions of their problems.
British Debt Question
Well informed quarters also min
imjze the British debt mi ssion's de-
rarture without having completed an
ARRANGEMENT. 1t is pointed out that
the operation is huge and will have
momentuous consequences. Emphasis
is laid on the excellent relations es-
tablished by the two commissions and
the straight forward and business
like attitudes which both have
adopted. Substantial progress toward
an agreement is believed to have
been made and it is that the nego-
tiations will be completed by cable
after the British mission has had an
opportunity to confer with its gov
eminent