The New York herald., 1922-06-02
FINANCIAL NEWS
AND COMMENT
Sterling at Highest in Three
Years-Marks Up-Stocks
Adyance-Money Rises.

The decision Of the Preparations Com
mission to allow Germany a moratorium
for the remainder of 1922 In her repara-
tions' payment. coupled with fairly con-
fident predictions in Paris dispatches of
large loan to Germany In the near
future. drew financial attention to tho
foreign exchanges yesterday and laid
emphasis on the advance of sterling to
4.45 1916. the highest quotation since the
summer of 1919. AS sterling and marks
speculative efforts for the rise. it was
10 be assumed that collateral factor
behind the former was the British Pre-
miersvpeech In the House of Commons
on Wednesday, voicing a belief that the
German Government was sincere in ac-
cepting the Allied program for funding
a part of the huge total which Germany
owes. The foreign exchanges surpassed
the other markets In point of interest
In stocks there was the same brisk up
bidding Of specialties as on Wednesday
and Monday, reflecting the efforts Of
traders and, presumably. the ever active
pools In searching for issues which
would move easily. The standard shares,
both rails and industrials, were prac-
tically Indifferent to those fluctuations
and. outside of railroad equipments and
several Of the oil group. price changes
were Of not much consequences! Never
theless. the casual advances of special
issues were sufficient to trace the drift
Of speculation and examination of busi-
ness facts indicated that expansion was
slowly but steadily going on in many
directions. The rise of call money to
61s per cent. for late borrowings made
no impression on securities. It will be
seen next week whether or not the firm
tone over the month end represented
anything beside temporary demand Of
larger proportions than usual.
Features OF tho bond market were
vested in the sturdy action Of Liberty
irsues. all active ones holding at or
slightly above par and In a further
retreat OF the Southern Pacific collat-
retreated in the last two days gave
complete demonstration of the dangers
Of snap Judgment on legal proceedings
dealing with the railroads. At se1s the
As were eight points under the maximum
point touched In the first flush of the
Supreme Courts decision on the Central
Pacific matter. a movement suggesting
fairly heavy speculative losses. Cool
examination. OF the courts ruling make
it possible that the law may be obeyed
without such disruption of corporate
entities as followed earlier Sherman law
decisions. Without a full enforcement
of Southern Pacific Central Pacific re-
Iations. the collateral behind the bonds
is not likely to be disturbed or the bonds
retired. A rearrangement Of the situa-
tion respecting the two roads promises
to be highly iiluminative of the Sherman
laws connection with regional groups
provided for by the Transportation act
Of 1890. Southern Pacific shares recov-
cred as the bonds declined.
The weekly Reserve statements dis
closed no sign Of monetary tension. On
the contrary. the salient figures showed
more relaxation than they did last week.
Rediscounts Of the system were SIS. $780,
900 iess-in tho week before they rose
SIS. 500 0oo-and deposits declined $1,000
900. Those changes offset $4,000 900
increase Of circulation and the ratio of
cash to note and deposit liabilities. rs
per cent. was exceeded In only three
other weeks of this year.