The New York herald., 1922-05-19
FINANCIAL NEWS
AND COMMENT
Stock Speculation Switches to
Coppers and Sugars and
Away From Steels.

Speculative effort for the rise passed
away from the steel stocks in yester-
days dealings but displayed new force
among copper shares and stirred up
much activity in the sugar group and
miscellaneous industrial issues The
product o. Aeavy turnover was a re-
newal Of confidence in many quarters
that the growth of general business and
continued low money rates were arous-
ing fresh speculation in directions
abandoned temporarily three weeks ago
when persistent realizing sales took the
steam out of the advance. Steel stocks
evidently were pressed back by profit
taking sales. based on lack of new In
formation about merger plans In ad-
dition, news that the Acknowledgement
would discuss to-day the proposed con-
solidations with leading steel makers In
Washington probably promoted a little
,caution in commitments for the rise.
Developments affecting eight prominent
companies came forward with so much
speed lately. accompanied by unexpected
happenings. that the market had pretty
well lost sight Of possible legal ques-
tions involved in plans now under way.
The breadth of the market was en-
of several rails, notably New Haven
and Rock Island. and in the afternoon
one group of Industrial stocks after an
other were carried forward by profess
sional hands. 1t was noted, however,
that the rails as a whole moved rather
sluggishly and fractional advances were
sufficient to bring out fairly large offer
ings. The dinner in the White House
tomorrow night, which is to be at
tended by railroad men. presumably is
to allow the President to discuss rates
with them. The market has not for
gotten that the freight rate situation Is
still very much up in the air and the
expectation that April net earnings will
not make so good showing as did the
March returns is general. The March
coal movement. it will be recalled. aided
many roads in reporting larger gross
revenue than they did in March, 1921,
and there was an expansion OF mer-
chandise in various localities. The Kan
sas City Southern, the first to report for
April. showed yesterday declines OF II
per cent. in gross and 80 per cent. In net
income from those of April. 1921.
The foreign exchange market was
made interesting by a brisk advance
Of Far Eastern exchanges. accompany
ing another upturn OF silver, amounting
to q cent an ounce In New York.
European exchanges were dull, but the
strength of sterling, around 4.4o, was
in marked contrast to a reactionary
tendency of lire and French Belgian
francs. The explanation may have been
in the lack OF constructive developments
in the Genoa conference, but moro
probably it was connected with grow
ing strength of the British fiscal and
monetary position. which is more pro-
nounced than the Improvement taking
place on the Continent. Grain prices
lost considerable ground. the May
wheat option receding cents bushel.
while others were heavy. Cotton futures
were inclined to rest, although the spot
price again edged forward. rejecting
further extensive buying in the South.
The weekly reserve statements in
dicated no change in the easy under
lying position of credit and money. The
combined bank ratio of cash to deposit
and note liabilities, 77.6 per cent, wfs
very close to this years best figure.
Circulation again declined. the reduc-
tion being no less than 900. and
there was moderate contraction Of de-
posits. AS rediscounts declined more
than s14O00,O00. it was plain that mem-'
Der banks were we'll able to take care
OF business needs and, at the same time,
reduce old loans.