The New York herald., 1922-08-12
FINANCIAL NEWS
AND COMMENT
Stock Market Presents Strong
Front as Greater Show Of
Confidence Returns.

The action OF various markets yester-
day. particularly the stock market. indi-
Gated a more satisfied attitude iowa I'd
general conditions than has been dis
played in long time. Buying OF secu,i-
ties was conducted with a greater show
OF confidence and the bear attacks to
which the stock market in particular
has been subjected almost daily for the
last two or three weeks did not appear.
This was sufficient evidence that the Sc
assaults have been without favorable
result for the professionals who conduit
ed them.
The market as a whole was rather
dull, albeit strong throughout most OF
the session. Trading was not on a
particularly big scale, but the buying
that did come into the market caused
such sharp rallies in stocks OF the mail
order houses, the leading rails. number
of important utility properties. &C.. as as
TO remove any doubt that securities for
the most part are in strong hands and
any attempt to buy them brings about a
bidding movement which marks them up
materially
One Of the chief topics of interest y.-s-
terday was the credit situation as It is
reflected in current rates for call money
and in the availability Of funds sor spec
ulation. The time money situation has
remained relatively easy for many
weeks. but the call rate has fluctuated
between "a and per cent. and has not
furnished the same evidence of a plen-
tude of funds as the market for dated
obligations. Thist has frequently been
the cause of severe criticism directed
toward those who are largely response
BILE for naming the rate
While call money has beer held
around the to per cent level here in
the last few days. it has been quoted
in London at per cent and even lower.
Yesterday morning money brokers on
the floor Of the New York Stock Ex-
change were planning to fix an open
ing and renewal rate of 4la per cent
but they were informed by banking in
stitutions that unless a renewal rate or
Az per cent was established many
loans would be called. This was re-
guarded as a rather high handed way OF
the situation, particularly as
there was no especially urgent demand
for funds which would warrant such
action. Call funds became SO plentiful
during the day that the rate later de-
clined to 81 per cent, and about s10.-
900 900 was unwanted at the end OF the
session.
The weekly bank statements continue
to reflect an extremely easy money stu
alton. with loans at comparatively low
level. AS for the theory that the cx-
pansion OF business during the first half
of this year has made necessary the
diversion OF funds from Wall Street to
industrial and trade channels it Is
only necessary to call attention to the
fact that the excess reserve over the
legal requirement stands at present at
s1.700, $4,000, whereas year ago.
when business was almost at a complete
standstill. 1t was s1,131. 1850 900.
Foreign exchanges did better yester-
day. although business was very light.
Not only does the seizure Of transat-
lantic cable facilities make business in
exchange difficult. but tendency was
displayed yesterday to await further de-
velopments in the international situa-
ton. However. announcement that
short moratorium for Germany had been
agreed upon pending further negotiation
had a stimulating effect on foreign
rates.
The reactionary tendency Of the grain
market was still In evidence. while fur
ther sharp advances in cotton were reg
istered in the continuation of the swing
begun on Thursday.