The Washington times., 1922-08-27

On more than one occasion during
the past week or SO operators haye
attempted to reap benefit from the
clouds that have been gathering in
domestic and foreign trades and
business, but without success. Oc-
easionally they succeeded In sending
prices of speculative stocks down a
few points, only to suffer a rebuff by
their quick recovery in subsequent
trading. For another consecutive
week the stock market closes with a
higher average price level than the
one preceding. and with large num-
Der of the most prominent stocks at
new high prices for the year.
New High Marks Made.
The steel stocks were naturally
affected by the announced increases
In prices of finished steel products,
as well as for pig iron and steel bill
let's. Present prices are about 35
per cent above those which prevailed
In the first part of the year. though
they are only about one.half of the
war scale. Copper stocks have been
advancing more on the theory :hst
they have been behind the general
market than by any actual accom-.
plishments Of the copper companies.
three of the largest companies, Chino,
Ray and Nevada, today reporting a
deficit for the three months ended
June 80, 1922. Mexican oils bene.
fitted by the favorable settlement Of
the Mexican export tax, the Mexi.
can government reducing that item
about so per cent; tobacco, sugar.
equipment and motor stocks reflected
the high earning rate of representa-.
tive companies, some of which ma rK-
ed up their dividends; and the ship
ping stocks declined by reason Of the
unfavorable outlook in overseas
trade.
Bond Market Quiet.
New financing through the me-
dunn of the investment market has
practically come to a standstill, the
weeks total Of new bonds being less
than $4,000 900, including only one
industrial issue of 100000.
Investment bankers have been put
to desperate straits in order to sup
ply the increasing demands Of their
customers and are said to be sending
their scouts to all sections Of the
country In order to determine the
exact situation.
There are quite a few reasons for
this development which, however, Is
not expected to be permanent. In
the first place a number Of important
corporations have found 1t advanta.
Eeous to finance themselves by
means of new stock issues rather
than appealing to the bond market;
then, again, others are waiting for
stil more favorable conditions than
prevail at the present time and are
hopeful of securing accommoda tions
at lower rates. Foreign borrowing Is
practically out of the question, and
Of the market.
Meanwhile, there Is an unusually
heavy demand for all grades Of In
vestment securities on the listed
market. as also in the counter trading
of the important investment organi.
nations. Prices of prime and second
grade bonds have steadily advanced
during the past week, and trading
has been unusually active for this
period Of the year. Railroad stocks
and public utilities have maintained
the strength for which they have al
ways been noted.
Low Money Rate.
Bankers who naturally keep in
close touch with the money situa-
ton state that In their opinion Dor.
rowing rates will be low for a period
of several months and possibly into
the new year. Next week the Sep
tember settlement will have to be
made. and this may cause a
temporary furry in the money
market, affecting call money rather
than time loans, which are now at
the lowest rate for the year.
In less than another week we
shall have entered upon the last
quarter Of the calendar year, in
many respects the most important
business period Of the year. 1t Is
in this period that representative
business organizat tions make their
best efforts to round out a prosper
GUS and successful season, to clean
up their tardy schedules. to cut down
on expenses, and to surpass, II pos
sible, the records of former years.
As a rule the country goes into
this period with a flying start, with
handicap brushed aside, and all
parueS cooperating lot tne CoiilTiOl
good. Unfortunately, these condi-
tons do not prevail this year. since
two important industries are spend
ing a great deal Of their efforts in
trying to pacify men who feel that
they have a grievance and are un.
willing to proceed with their duties.
until these grievances have been re.
moved. The average business man.
not knowing all the facts in the case,
cannot take sides but can only com.
mIserate the system which prevents
him from conducting his own bust
ness!tn the manner he desires, and
conpeis him to accept serious losses
for reasons over which he has no
CONTROL y:
~ Hty
100000 in Galax Bonds