The Washington herald., 1922-04-16
Oil STOCKS MARK
HEAVY VOLUME ON
STOCK EXCHANGE
Many Specialties Reach
New Highs Led by
American Woolen.

NEW YORK. April 15.-Those
who expected today's short session
of the stock market. sandwiched
between two holidays, TO be dull
AFFAIR were sadly amiss. The two
hours OF trading were character
lied by a tremendous volume of
business. the turnover exceeding
the ordinary full days business Of
which were bid up briskly on
Thursday, continued the feature to-
day. substantial advances being the
rule in this group Many OF the
specialties and speculative favor
ties reached new highs, American
Woolsn being conspicuous with an
advance of two points. The rails
resumed the activity which began
Thursday afternoon and New York
Central broke through 90 for a new
high price. Among ten cheap rails.
Seaboard Air Line issues. both COM
mon and preferred. were the star
performers, both selling two points
or more above Thursdays closing
quotations. The bond market
maintained the high level of the
weeks activity with prices still
exhibiting strength. particularly in
the lower-priced issues.
Money Grows Cheaper.
Official recognition of the grow
ing cheapness of money is the fea-
ture of the past week in the hnan-
cial markets. 1t has, Of course,
been evident for some time that
the gradual easing i'm rates was
continuing. Even the spring quick
ching. of trade was insufficient to
inetrraIpt this tendency. But a 3is
per cent rate on Treasury certifl-
Gates was unexpected. Four per
cent was as low as most observers
had N mind. The new rate does.
however. find ready justification In
the ruling price of bankers ac-
reptances and. for that matter. of
the outstanding certificates of in
debtedness. Taken with the re-
duction in the Bank of England re-
discount rate. the Treasury's ac-
tion RssuredIy does establish the
fact that money is now distinctly
cheaper
While the trend thus is contin-
ued there are reasons for question
ing whether the general movement
Is as rapid as is suggested by the
rate on the new Treasury paper.
It Is possible that the market for
this kind OF paper is subject. just
at present. to somewhat abnormal
influences A large volume of for
eign Ioans rece -tly has been placed
in the American market. As a re-
suit large balances are temporarily
available. The natural utilization
Of such balances. pending ultimate
disposition, is the purchase OF just
such paper as acceptances and
Treasury certificates.
Rediscount Rates.
Thus the condition. while fortu-
nate so far as Treasury financing
is concerned. may anticipate what
might be regarded as the more
natural course of events. Such
considerations obviously would eX-
plain the Federal Reserve authori-
ties hesitation with regard to
reduction in the rediscount rate
The authorities have to consider
In addition the possible effect of
such action on speculative activi-
ties. as we'll as the possible impli-
cations of the soldiers banus bill.
Fear of further stimulating the
recent active British speculation in
securities has been a factor in de-
laying a reduction at London.
where the official rate has been
decidedly more out OF line with
the market than is the case on this
side Of the water. It is significant,
in fact. that the British reduction
was timed to appear Unexpectedly
and just before a four-day holi-
day.
Trade Conditions.
Industrial and trade conditions
meanwhile continue to display
much irrsgularity. The demand
for steel is still good. railway buy
ing is promising and the building
construction movement appears TO
be sustained Retail trade. on the
other hand. Is disappointing in
many sections Of the country and
the textile situation in New Eng
land Is still unsatisfactory. The
coal strike has caused more incon-
venience than had been antici-
rated because OF the heavy loss in
production in nonunion mines, but
miners are proverbially idle before
Easter AMI the trade agrees that
next week will offer a better test
as to eventualities.
Events at Genoa, while still at
too early a stage to permit of final
conclusions, so far justify those
who have taken conservative
view OF the possibilities OF this
conference 1t has become fairly
we'll established that the discus
sion which is supposed to attack
economic problems cannot go into
such economic fundamentals as
operations. disarmament and the