The New York herald., 1922-04-05
FINANCIAL NEWS
AND COMMENT
Stock Market Spectacular and
Erratic-Libertys Climb
to New Highs.

spectacular and crratic market in
stocks. a vigorous bond market which
carried several Liberty issues to new
high records for this year, two OF them
going 10 par and a general recovery
OF cotton prices marked yesterday as
one of The most interesting financial
business days OF this year The un-
usually large turnover of stocks was
second only to the tremendous total OF
transactions on Monday. and dealings In
approximately 4s5,000 shares in the first
two hours were the heaviest of any
equal period since the big iiquidating
markets of two years ago. For practi-
cally the first time since the current
rising market got under way the weight
of stocks carried on credit made itself
felt in the money market, the call loan
rate rising from A = per cent to 5 per
cent. toward the end of the day despite
evidences in last weeks bank statements
that a large volume OF funds had ac-
cumulated in New York. That move
ment by itself. however, was not indi-
cative of any real change in the money
situation. as demand loans commanded
6 per cent. at times last month. Time
loans were in freer supply than they
were Monday and at Az per cent.
The erratic swings of industrial share
prices were clearly the product of tech
nical conditions. grown out of the sharp
rise in the last few days. There We're
large profits waiting, to be taken when
the market opened, and further gains in
Studebaker. Baldwin Locomotive. United
States Steel and several specialties were
availed of by spectators for converting
a part of their holdings into cash. In
connection with Studebaker proof that
powerful economic force lay back of that
stocks rise since last November was
supplied in remarkable production fig
ures in the company's annual meeting.
The company's business in the first
quarter of 1921 was no more than fair,
but production increase Of 14S per cent.
in the first quarter of this year and
100 per cent. enlargement of sales GER
tainly spoke of a high degree OF pros
perity. which presumably had been felt
in other quarters Of the automobile in
dustry 1t is on such evidences Of in
dustrial recovery and recent daily re-
ports of quicSening manufacture at
major steel centers that the stock mar
ket has been built. The Studebaker news
had been expected. and, following the
usual custom Of the market, it was prob
able that much selling followed the ap-
pearance OF it's statement but the stock
was unsettled very little more than were
many others OF the industrial depart
ment
The day contained as little disturbing
information as any other In this years
long progression OF constructive events
OF market application. Sugar stocks
were bid upward on the appearance Of
a firmer tone in the raw sugar market.
The safety OF the Bethlehem Steel Cor
poration's common stock dividend, in
dicated by it's officers in the company's
annual meeting. strengthened specula-
tive confidence in the steel and iron out
look. Reports of gradually expanding
sales Of copper indicated that the re-
opening OF numerous mines this week
had been caused by the need to build
M reduced stocks of the metal.
Sterling exchange advanced nearly
cent to 4.4O, reflecting the London mar
ket's relief through the Houses vote OF
confidence in Lloyd George. but there
was little interest In dealings. and the
rate eased off close to Mondays last
price at the close. The other European
exchanges were steady.