The New York herald., 1922-05-21
FINANCIAL NEWS
AND COMMENT
Vigorous Buying of Rails,
Steels, Oils and Motors
Boosts Stock Prices.

The stock market gained further mo-
ing of railroad, steel, oil and automobile
issues. The force of the advance was
demonstrated particularly in the last
half hour of business, when United
States Steel was carried to a new high
point at 102 and strong gains were
scored by such railway shares as Great
Northern preferred. Lackawanna, New
Haven. Reading and Southern Pacific.
The final profit taking. natural at the
end of a week of rising quotations.
Topped the tops off the most active
stocks. but left the market decidedly
firm. Dealings were more widely dis
tributed than in the preceding sessions
and the turnover was at rate of 2,oo0,-
600 shares for a full market period.
The withdrawal of the Youngstown
Steel and Tube Company from the pro-
posed six company merger came as a
shock to spectators who had bought
Republic Steel shares on Friday with
confidence sufficient to lift the price
four points. The product of hasty
dumping Of that stock yesterday at the
opening was an initial decline of 3%
points and Midvale went backward
under large sales. 1t spoke well for the
rank and file of stocks that those re-
verses had no broad effect on specula-
tion. although it was probable that trad
ers, seeing the uncertainty of merger
plans, turned their attention to rails as
being more stable than some of the in
dependent steels. The matter of steel
company consultations Is likely to enter
new and interesting phase. Even
though the five remaining concerns may
not follow out original plans, the ten
dency is so plainly toward large busi-
ness units that mergers of companies
which desire to diversity their products
and at the same time keep down over
head costs through centralized manage
ments may be expected. R
The market has paid in the last few
days increasing attention to proofs of
expansion going on in industry. 1t Is
Impossible to escape indications comng
from many localities that the scope Of
industrial activity and increased distri-
button of goods is steadily being enlarged.
A measure of one industry was pre-
sented yesterday in a report by the
General Motors Corporation that in the
first four months of 1922 its product ION
had more than doubled that of the CORE
spending period of 1921, while the COM
pany's May output was expected to
exceed its large production of April.
The New York Clearing House bank
statement suggested that the associated
institutions were leaning less than be-
fore on the Reserve Bank and using
their own resources in making loans At
the same time that credits with the Re-
serve Bank We're reduced S22,534,0O0
from the aggregate of a week before
bank loans increased $97 ,534 900, one of
this years largest expansions The rise
OF loans caused demand deposits TO in
crease $66, 900. as reported imsthe
statement of actual condition on Friday
afternoon The fall Of reserve carried
with the Federal Bank aided in bringing
about recession of $31.3S4. 900 in the
reserve account. leaving the amouns
above legal requirements no larger than
S5,521, 900.
Another sharp bulge in silver prices
in London and New York. amounting to
L u cents an ounce over here. bore wit
ness again to the demand coming from
ha a To ct fer.
were not much changed from Fridays
last quotations