The New York herald., 1922-02-10
FINANCIAL NEWS
AND COMMENT
Stocks Regain Losses in Vigor-
Gus Rise-Sterling Breaks
to Below 1876.

For any one desiring variety in mar
ket price movements yesterdays changes
in stocks. bonds. foreign exchanges and
grains pretty well filled the bill. Stocks
threw off Wednesdays reactionary ten
dencies and retraced with considerable
force the ground lost on that day, United
States Steel common supplying an ex-
cellent example with a swing of nearly
8 points to its highest level of this year
In foreign exchanges it was evident that
recent speculative buyers succumbed to
the temptation for profits held forth by
a rise OF 10 cents to the pound sterling
in a week, and heavy offerings In the
afternoon broke the quotation down from
slightly under 4,3s to 4.35ss. That pre-
cipitate fall of more than cents weak
ened francs, lire and others.
The markets. with the exception of
cotton, were much more interesting than
they were in the earlier days of the
week. Not only did stocks seem to cast
aside the depressing factors which
slowed down speculation on Wednesday,
including the menace of heavy taxation
on transfers proposed in connection with
the soldiers bonus bill, but interest in
bonds broadened out to include several
less well placed railroad issues. The
demand for bonds undoubtedly was
partly speculative, and by including is
sues with rather remote liens on assets
suggested that the market was taking a
more favorable attitude toward the rail-
road outlook than had been in evidence
before. But the more spectacular feat
ures Of bond dealings was supplied by
the Government war issues. The effect
of the Treasury's announcement that the
Victory 3A IS would be called on June 15
acted to jar that issue down from a
moderate premium to point slightly
under par, and the Az 8 descended close
to their original offering price. At the
same time the theoretical vacuum in the
tax exempt bond field caused by the
program for retiring the 3 p s stimulated
the Liberty 3 Us into the extraordinary
rise of more than point. A collateral
side light on the expanding market for
tax exempt securities was presented in
news that the $75.000 900 farm loan
issue, offered as recently as Monday
morning, had been disposed Of esta blish-
ing a time record for distribution of so
large block of paper of that class.
Few departments In the stock market
were overlooked by speculative purchas-
ers and quick recovery of railroad equip
ment, steel and petroleum shares sug-
gested that short sellers Of recent days
had been moved by the stubborn under
tone Of prices to reduce their commit
ments. Many industrial issues gained a
point to more than 2 points. Rails were
less resilient, bat Arm tone predomi-
mated in them. Call money was at per
cent. throughout the day.
The weekly Reserve statements ind-
Gated that the movement of funds away
from this city continued to be under way.
a fact which accounts in part for the
maintenance of fairly high interest
rates. The local Reserve bank was again
heavy loser through operations OF the
gold settlement fund, that drain amount
ing to more than s24.oO0,OOO. Last
week more than s36,0o0,000 was re-
moved from New York's credit in the
fund. That loss and an increase of $11.-
900 900 in deposits apd a $1,000, 900 en-
largement of circulation was effective in
carrying the New York ratio of reserve
to deposit and note liabilities from S4.S
per cent. to S1.7 per cent. the lowest
figure since January 4. The SYSTEMS s
ratio was practically unchanged.
Grain prices again went forward for a
time, but as foreign exchanges began
to weaken wheat and corn quotations
eased off. Wheat futures closed at 2 to
2 y cents less than Wednesdays final
prices