The New York herald., 1922-12-17
FINANCIAL NEWS
AND COMMENT
Pan-American Petroleum and
U. 8. Steel Common Feature
Firm Stock Market.

WIN the exception or 4 Wide onening
III Pam American Petroleum and Trans
port shares. rcssioned bv the ov~rnirht
announcement OF another iarge stock
dividend. and the strength IN the metal
srocks and the motors there was little
OF outstanding importa nee In the stock
market Yesterday Interest was not AT
high mitch: nevertheless. the tone OF
the market was one OF extraordinary
firmness and the operations of the short
session revealed the presence or verv
substantial brvine power. RecessIons I'm
the general list did not get Tar In those
few cases where the professionals were
ance power OF stocks. On the other
hand. stocks advanced quite easily
whenever purchases OF note were at
ten,nted
on Pan-American was a complete sur
prise. No on outside the inner circle
had even spsnici7n that tire stock from
which big stock dividend was deducted
only last Wednesday should so soon DO
made the basis OF another distribution.
AT the same time the Increase OF the
dividend rate on Mexican Petroleum
shares was announced and this only
served TO stimulate the enthusiasm IN
pan-Arnerican which owns a very large
and is thereby assured OF Increased
earnings through these dividends. The
scramble TO buy these shares at the
onenins. however. was too great and the
wide spread If the first sales was Of
such proportions that sharp recession
from the opening resulted.
Another issue In which something
If demonstration was made, although
on a much moro moderate scale. was
United States Steel common. which WAS
heavily traded In just under los It
IS such buying as was seen In Steel
and some Of the other old standard
issues that serves TO revive confidence
N the market rs a whole. There is no
denying that the general attitude IN
the financial district has changed ma
terially in the last week and that far
greater degree Of confidence Is dis
played than at any time since the re-
action began early In October.
1t may be that technical conditions.
tax selling or any one of large
number of developments will occur be-
tween now and the turn of the year and
that recessions from the present levels
y hs cd ht,f =
a pretty firm conviction am ng those
who give the market the closest study
that the lowest points OF the year have
been passed.
Foreign exchange rates were espe-
eislly active, with French and Belgian
francs and German marks making som
rather sharp advances. The move in
marks did not mean much. in so far as
the actual value Of the increase was
concerned butt on percentage basis II
was little short Of sensational Ez-
change on Paris moved up considerably
more than 20 points. and Belgian rates
advanced about the same amount Ital-
Ian lire were also strong. although their
advance was much more moderate.
Cotton advanced. closing substantially
above Fridays final figures.
The big changes In the positions OF
the New York Clearing House banks, as
revealed In the weekly statement, were
not unexpected, and were directly attrib-
utable to the tremendous Government
operations during the last week. The
sharp line of difference between the
average statement and the actual state
ment shows TO what extent the weeks
operations were delayed until the end
Loans Increased some 59s.o0o.0o0, and
reserve deposits at the Same time
Jumped S26.221.oo0. both representing
preparations for the absorption OF the
Treasury loan on Friday.