The New York herald., 1922-03-11
FINANCIAL NEWS
AND COMMENT
Industrial Issues Strong
Bond Market Firm-Vic-
torys Go Higher.

impressive at times yesterday and there
were indications OF renewed investment
buying of rails and well placed manu-
featuring company shares, but the best
reflection OF underlying financial condi-
tions OF weight was seen in the bond
market. Victory AIS edged upward to
a new high point. the Liberty bond list
was firm as whole and corporation
issues were in demand. The course of
bonds was linked closely with the ten
dency Of money rates. call loan renewals
being at 1 per cent. for the first time
since January 3 and the second time
this year. Later ga per cent was
quoted for loans on the New York Stock
Exchange, rate lower than had been
seen since January 16. On that day
after standing loans had been renewed
at 3 "a per cent, there was q rapid up
turn to per cent. the result OF with
drawals of out of town balances. and it
was not until a full month had passed
that rate as low as per cent. was
quoted again.
1t will be decidedly interesting to see
what happens to money in the next
fortnight. IL out OF town banks elect
to take their balances back home be-
cause OF low return In New York on
demand loans, development which fol-
lowed the last two recessions to 31a per
cent, the movement should get under
way early next week. If supplies of
funds are not reduced around March Is,
when the quarters income taxes fall due,
1t should be an excellent indication that
money will be unusually easy until
spring farm requirements be felt. In
passing. 1t is worth stating that a year
ago cali money was scarce at per
cent. and time funds commanded that
rate.
The fitful activity OF speculative pools
made stocks jump about a great deal,
but the movement passed from one issue
to another without weakness developing
in any prominent quarter despite extern
sive realizing sales. Many new high
levels for the year were reached. The
speculative habit Of centering enough
buying on stock to carry it up point
to 2 points and then taking up another
one with the same results had not had
a better exposition in any preceding
week of this year than In yesterdays
business. The automobile, railroad
equipment. gas and oil stocks were
paraded in turn. The strongest prices
in many cases were reached near the
close.
The day was almost bare OF news af-
fecting securities. The Studebaker Cor
poration's excellent report for 1921 had
been so thoroughly known in advance
of publication, as far as earnings
counted, that it aroused comparatively
little interest in trading circles. An
unusually small number of annual re-
ports appeared, considering that this Is
the open season for them, and informa-
ton about the industries was lacking
except the United States Steel Corpora
tion's monthly tonnage statement. the
fall of 1O0,609 tons in bookings IN
February was not unexpected. 1t had
been calculated that so to So per cent.
operations would turn out more stee
than new orders could offset in a
period in which competition was ex-
keen and price shading gen.
eral. In orders the corporation on jan
uary 1 was back to the low basis which
followed the outbreak of the war, the
aggregate of 4.141,000 tons being the
smallest since December, 1914.
Sterling exchange dipped down In the
morning, but recovered later and was
not much changed at the close from
Thursdays last quotation. Renewed
export buying lifted wheat about cent
bushel and cotton advanced 10 TO ~
points in an Indifferent market.