The New York herald., 1922-04-16
FINANCIAL NEWS
AND COMMENT
Oils Active in Strong Market
Unusually Broad for Short
P0st-Holiday Session.


nc means typical OF short post-holiday
session. Extraordinary activity and real
strength marksy- transactions through
out the two hours of trading, and not
only were totals the largest for any
Saturday in more than two years. but
also at the rate or about 100000 shares
for a full Ave hour session. The prin-
cipal activity was confined to oil shares,
and their strength was unmistakables
The lack OF news concerning steps to
end the coal strike. expected in certain
quarters, had important bearing on the
movement in oil issues. The financial
community is beginning for the first
time to attach considerable Importance
miners walkout. The Importance OF
scarcity OF fuel to producers of fuel oil
can scarcely be calculated, anh already
reserves of fuel oil have been touched.
with the coal strike but fortnight old.
Wall Street gave belated recognition
yesterday to the Importance of the con-
tract concluded between the United
States Government and the Sinclair Con-
solidated OIL Company, announced last
Thursday. Sinclair shares were In very
heavy demand, helped along. obviously,
by pool operations. That the contract
will be of great value to the Sinclair in
terests cannot be doubted. But the real
significance of the deal, as Wall Street
is inclined to view it, lies in the policy
which it heralds. In the first place 1t
can mean only that the Government
realizes that by permitting its reserves
of oil for naval use to. remain under
pose The constant drilling Of oil COM
panies in and about the fields where
these reserves are located will drain
them to the danger point Thus 1t be-
comes necessary to get the oil out of the
ground and into steel storage so that it
can be definitely known at all times just
what may be depended on in the way of
fuel.
But Of greater Importance to the busi-
ness and industrial world is the point
Of policy which is indicated by the Gov
ernment's action in signing such a con-
tract. That the Government intends TO
recognize so-called big business and adj
nit it to partnership Is important, OF
course. but that that same big business
is to be permitted to make a fair. rea-
sonable and legitimate profit out OF its
Governmental connection Is of greater
moment The financial community feels
that the entering wedge has been driven
for vast combination or partnership
of the United States Government with
the country's big industries which can
be only OF greatest value in the future
The general list yesterday. although
strong and active. was overshadowed
by the performance of the onl shares.
Certain speciality issues, which had
been numbered among recent speculative
favorites, were bid up to new high
ground. principally through operations
of speculative groups. The rails gave
a good account of themselves and one
or two of the lower priced issues, notably
Seaboard Air Line. advanced rather SEN
sationally, apparently without reason.
A sensational advance in May wheat
marked the last few minutes of trading
in that commodity. Following a five cent
advance during the early trading, an
other jump of four cents bushel was
recorded In the last five minutes OF
trading. The only explanation OF that
violent advance was that demonstra-
ton had been staged against the bear
interests and which was too great Tor
them to fight. Foreign exchanges were
dull and few cases slightly higher.