Evening star., 1921-07-22
EASIER MONEY A
FACTOR IN MARKET
Bond and Rail Buying Fea.
ture the Day in Wall
Street.
BY STUART p. WEST.

NEW YORK. July 22.-The two
main features in the Wall street situa-
tion today were the continued active
absorption of investment funds and
the further strength displayed by
railway stocks. The movement in the
bond market was extremely broad
affecting all classes Of securities, and
carrying prices in many instances up
to new highs for the year.
1t was more OF a response even
than the demonstration yesterday, to
the downward tendency of interest
rates as confirmed by the lowering OF
federal reserve discounts and the
prompt reflection in all branches OF
the money market.
To some extent the better class of
dividend paying rail shares were
helped by the same causes that were
at work in bonds. But more largely
the buying of the railway shares.
which took in low priced non dividend
payiny issues quite as much as those
of higher rank, was inspired by the
improvement in the railway outlook.
which has been recognized for some
time.
Effect of Cheap Money.
The effects Of the federal reserve
action continued to be felt in the
money market quite as much as in the
investment market. For a month past
lenders of time money have been hold
ing out for 6k per cent. although not
getting 1t. Today they came to the
borrowers firms and bids for loans
maturing all the way from sixty days
to six months; that is. all through the
crop-moying season, were freely sup
piled at per cent.
Nomipally quotations for commercial
paper were unchanged. but actually
the market was slipping, and the indi-
cations were that very soon per cent
would be the ruling figure for dis
counts of the highest class. Call
money meanwhile got down to per
cent.
Outside the railway group, the
good deal of uncertainty. Again
there seemed to be a careful discrimi-
nation between industrial stocks. back
OF which the business situation has
turned for the better. and stocks where
1t has not. Sugar issues were actively
bought.
Rails Are Leaders.
What has been going on in most of
the dividend-paying rails for a fort
night past might more properly be
described as a repurchasing than as
a fresh buying movement. The people
doing most of the buying have been
those who sold out in the war period
at prices well above the present and
are now taking these stocks back.
From the standpoint of the sellers of
five and six years ago the rails at
present prices still seem low. From
the standpoint Of those approaching
the railway market without past
comparisons in mind many of these
rail stocks are selling. if not high
enough. at least well up to what they
are entitled to sell for under condi-
tions where bonds and high ella SIS
preferred stocks are yielding any
where from to ~ per cent. At to-
days prices the return on Southern
Pacific was ~ per cent: on Illinois
York Central. Z. These returns are
certainly not high by comparison
with the general run of bond invest
ments.
Sugar Stocks Strong.
The sugars were among the strong.
est of the industrials. Their advance
was somewhat belated recognition O,
the Importance of the Developments
in the sugar trade during the pas,
that the refiners who have not beer
In sympathy with the commission
formed to direct the sale OF the Cubar
crop have lost their battle.
The supply Of Porto Rican sugars
upon which the refiners had depended
has been so far used up that the re.
finers have had to come to the Cubar
commission. and at the rate sales have
been put through during the las,
week 1t should soon be possible 10,
the latter to mark up prices. A rise OF
cent pound would make an enor.
nous difference, and it is this pos.
sibility which buyers of the suga,
shares were figuring on today.