The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-28
FINANCIAL NEWS
AND COMMENT
Stock Prices Continue Down
ward-Bond Demand Is
Less Keen.

The eSb tide in stocks. which became
pronounced on Wednesday. continued to
gather force in yesterdays dealings,
several recent favorites for the rise re-
treating u to 8 points. At the same
time hesitant tone in bonds seemed
to show that this weeks heavy offerings
had been too unwieldy for the market
to absorb without slowing down the de-
mand for older issues. AS. French Gov
eminent TVS and SIS and one or two
French municipal bonds were definitely
weak, It was possible to trace something
OF the altered market tone to the differ
ences of French and British representa-
tives In Genoa and the British Premier's
gloomy picture of European possibilities
did nothing to support investment SEN
tlment. But a reference to the confer
ence as O factor in the sale OF stocks
might give that influence too much i'm
portance. The stock market clearly had
been showing from Tuesday of last week
the effect of persistent realizing sales,
and that flow appeared yesterday. to be
supplemented by heavy output OF sales
for the short account from professional
sources This weeks reaction has been
following precedent. When it is recalled
that there had been no real setback
since the first half OF January and that
In the last three months many Industrial
and not few rail shares had advanced
from 10 to 80 points, no surprise should
be attached to such a recession as this
week has brought.
Money rates continued easy. the call
loan rate standing at 31a per cent, and
business news was by no means unset
Ting. Proof of the steel trades remark
able recovery In March was presented in
official statements that the Bethlehem
Steel Corporation received more orders
in that month than In the two preceding
months together. while operations In the
March quarter had run up from so per
cent to 80 per cent. of capacity. Such
an Improvement In so short a period Is
striking, especially as information about
Aprils orders indicate that the demand
for steel is being maintained. while pro-
duction has felt very little i'll effect Of
the coal strike.
The extent of business growth In
March is emphasized more broadly by
railroad earnings than by results in a
single industry The Pennsylvania, for
one, reported an increase of nearly
SO. 900, 900 In gross revenue, which. aided
by economies of operation, brought an
expansion of more than s7.700.000 in
net income. and in the first quarter
costs were lowered nearly IL per cent.
from the total In the same three months
of 1921. Certain Western lines did not
do as well In March as did those of the
East, but most returns at hand show
material Improvement in operating prof
Its compared with those Of February.
The New Haven and Baltimore and
Ohio, among others. made a good show
ing in increases of gross revenue, which
Is the true test OF traffic movement
The liquidation of loans in Reserve
banks continued during the week OF
April 26. rediscounts falling s53.6s1, 900.
Again there was a contraction of cur
rency, amounting to s24. 100000 move
ment, which, by itself, causes wonder as
to how expanded payrolls and mer-
chandise turnover are being cared for.
The contraction in the volume of cir
culating notes outstanding has been one
OF the unexplained things in the last
fortnight, as. normally. the tendency
should be the other way. In conse-
puence or those changes anu gam oi
s5,174.000 in reserve, with fall of Sl9,-
600, 900 in deposits. the ratio of cash to
deposit and note liabilities advanced
full 1 per cent. to 1873 per cent.
One would look to the foreign ex-
change market for signs of financial UNI
rest over European politics, but none OF
real moment has been seen. Sterling
eased " cent yesterday to 4.42M and
francs and marks were shade lower
under light flow of business.