The New York herald., 1922-06-27
FINANCIAL NEWS
AND COMMENT
Mex Pete, Whirled Up Above
200, Furnishes Crispness to
a Dull Stock Market.

The movement OF stocks on the STOCK
Exchange yesterday was but a repetition
OF practically every day last week, with
no particular interest shown in anything
except the so-called Doheny stocks and
their sensational advances Mexican
Petroleum continued its now famous ad-
vance. selling well above the 200 mark and
scoring, at the high. gain Of more than
% points from Saturdays close. Profit
taking in the late trading brought about
a reaction of about 10 points and the
stock closed at 1876, with a net gain OF
13A points. The Pan-American stocks
representing the company which owns a
vast majority Of the outstanding shares
CT the Mexican Petroleum Company, re-
Elected yesterday for the first time in an
important way the increased value OF the
parent company's holdings as a result of
Mexican Petroleum's sensational ad-
vance. Both the class A and class b
stocks of the Pan-American Company
advanced total OF about points to
highs of S61a and SS1s, respectively. 1t
was to be expected. however. that these
two issues would score large gains after
what has happened In Mex Pete
AS for the remainder of the market,
dealings were on small and quite mar
row scale and without the activity and
interest created by the actions Of the
or th.a 1a., Ao1
exceedingly dull and featureless. Pool
operations were apparent in q number
of issues which showed more than ordi-
nary strength. but after a severe re-
action such as occurred a week ago, 1t
has been found that some time may be
needed in which to create sufficient
public confidence to carry these manipu-
lative moves through. The public was
thoroughly frightened by the extremely
drastic character of the shakeout. 1t
has been the history Of the stock mar
ket that breathing spell is necessary
after break of that character before a
worth while following can again be se-
cured in market operations.
Railroad shares once more outdid the
industrial list in point of activity and
interest. Reading. Louisville and Nash
vile. Atlantic Coast Line and a number
of other railroad issues scored substan-
tial advances and during a greater part
of the day the principal business was in
that department. There is nothing new
In the railroad situation and inasmuch
as practically all market operations at
present are purely professional. It Is not
unlikely that the professionals have
turned to the rails because they find
them In better position than the indus
trials and specialties to advance.
In the bond market there was little
feature. The tone of the market
throughout the day was firm. but no
especially broad tendency to advance de-
veloped. Liberty issues changed but
little on the day and the volume Of
trading was substantially below the
rather high marks of last week.
Money continued to show a lack Of
supply. as indicated by the sudden
abrupt advance in the call rate last
Friday. Renewals were quoted at 4 per
cent, which compares with 2% per cent.
for part of last week. The demand
for funds after the opening of the mar
ket. while not particularly heavy, was
sufficiently large to cause an advance in
the rate to " per cent, the highest
since June I. There is nothing in the
credit situation to indicate that the
present tightness of money Is any more
than temporary condition. Banks are
making preparations for big operations
on July /. when millions Of dollars will
be needed to meet interest and dividend
requirements, and interior institutions,
which last week withdrew funds from
New York because of the low call rate,
have so far failed to return them
The tone of the foreign exchange mar
ket was one of irregularlty. with ster-
ling and lire higher and francs off from
Saturdays quotations