The New York herald., 1922-09-15
FINANCIAL NEWS
AND COMMENT
Rails Lead Big Rally After
Weak Start - Atchison
Highest In Five Years.


The extrenN enthusiasm born Of the
settlement of tho coal strike. the
gradual disintegration Of the railroad
strike and the outlook for vast I'm
provemcnt In business and industry In
the immediate future found reflection
In spirited buying of securities yester-
day which resulted in advances from
one to six points and more In the active
list.
Following the partial settlement OF
the railroad strike at Wednesdays
meeting In Chicago. it was natural that
the rails should be the issues to show
the first effects Of the turn of events.
Early weakness in the general list. In
around midday as a result OF the
heavy demand for railroad shares
Railroad stocks, in other words, turned
the market
The irregular opening in the general
list caused some disappointment in
quarters where enthusiasm over the
rail strike settlement news was ex
pected to have big constructive effect
on the stock market. Consequently,
there was some selling, particularly
from traders who were testing the
market to determine II the old theory
that stocks should be sold when the
good news Is out would hold good
A vigorous assault on stocks of the
United States Rubber Company accom-
panied by disquieting rumors was the
feature OF the early trading. After the
first preferred stock had dropped some
ten points, however, there was q sharp
rebound and spectators for the decline
who sold short while tho movement
was in progress never did get an op-
portunity to take their stock back at q
profitable figure.
When the buying movement in the
rails got under way it soon became
apparent that offerings OF stock were
extremely thin and that purchases
could only be made through the proc
ess Of bidding. There was a partcu-
iarly heavy demand for the railroad
shares of the so-called investment
class. such as New York Central,
Atchison, Louisville and Nashville etc.
Atchison sold above, 10s. touching the
highest point in about five years. In
Vulnerable issues made new high marks
for the year.
to-day in the shape of interest pay
ments, income tax payments Govern
ment Withdrawals from New York
banks, &C.. found reflection in a stiffen-
ing Of the call money rate before the
close. The rate Of 4 per cent. at the
opening was insufficient to attract funds
and some loans were called. Later the
rate was increased to Az per cent. and
almost Immediately afterward to per
cent, the closing figure.
The Government will take from banks
in this district to-day some $46.500 900
Of deposits in connection with payment
of interest on Liberty bonds and the ma
turity of certain Treasury certificates.
The continued flow Of new bond offer
ings emphasizes the extent to which
business expansion Is progressing ana
the amount of funds necessary to carry
1t through. All these factors point to
a moderately higher rate for funds. al
though bankers do not by any means
expect what might be termed tight
money market
Early yesterday the reaction of for
eign exchanges continued, with sterling
getting down eight points below It's re-
cent high level. A moderate recovery
later in the day, however marked most
rates up to points above the previous
days close.
Grain prices were lower. but quota
tions for cotton moved up a shade as
the result Of the days trading.
The Federal Reserve statements
showed little change. The system re-
ported slight increase in reserves and
a decline in rediscounts. Deposits were
. little moro than s15.o00.000 higher
than a week ago. The ratio for the
system was unchanged at 1873 per cent.
while that of the New York bank de-
clined one-tenth of l per cent. to S3.7
per cent.