Omaha daily bee., 1922-05-05
Financial
Gle Men 1erk aimeS.
By ALEXANDER DANA MOVES
Omaha Nee Iesssl Wire,


New York, May with nearly
all other markets more or less re-
dictionary in character TO-DAY, the
movement which attracted interest
Was the continued rise OF sterling.
The days advance Was only irae-
'ional but il brought the rate TO St.as,
or within j's cent OF the periods
high level reached March !, and with
that exception, 10 the highest since
July, 1919 lnaetion OF the other
European exchanges again suggested
that the influences al work in ad.
yaneing the London rate were pecu-
liar 10 that market.
As usual there are differences which
can be drawn from the actual. inter
national balance sheet. The New
York Federal Reserve banks month";
ly bulletin suggests one interesting
consideration. Deducting from the
March quarters merchandise eN-
port surplus OF the United States.
both the surplus OF gold imports and
the amoun, OF foreign loans iloa,ed
IN our markets during the period, !,
draws the conclusion that the balance
against the United States was S110,-
100000. This reasoning assumes the
drawing on New York by foreign
markets ior proceeds OF such loans.
which has by no means been the IN
variable rule. But on the other hand.
u does not reckon with that un-
known but certainly very large fac
tor in creating debi, balancc-ihc
transfer OF American capital 10
Europe for investment on Europe's
markets.
Oh Group Active.
ON the stock exchange today's sc,Ivi-
ties are again directed 20 higher speeu-
lative shares. notably tho oil group Put
II was evident from tho start that the
recent professional conductors Of the
market were realizing profits. Tho ma
,ursl result wa, abrupt and .omewha,
fected other Industrial shares of tho
speculative group. some Of the net losses
points.
But as a whole the stock market was
irregular. with changes In both dlrcc-
tions. and railway shares again stood mo-
tionlcss. Transactions on the bond mar
ket were large and prices In general well
maintained, three or four railway shares
reaching new high prices. A halt hn,
undoubtedly occurred in that markets
| movement, however. which Ia certainly no
unnatural result Of the huge outpour of
Few securities during the fortnight. These
pauses are what Wall street calls "dge-
ton"
low Mark Reached.
The past weeks decrease IN the reserve
systems percentage OF cash reserve 20
note and deposit liabilities brought that
ratio to the lowest figure since the mid
die of March. Such decrease would
ordinarily be described as a natural incl
dent of the duickening IN trade with the
spring season and IL may be 50 on this
occasion. The past weeks changes wero
most emphatic, however. not with interior
business districts, but at the New York
Reserve bank where increase both In re-
discounts and note circulation was greater
than in the system whole.
The &2t000,000 addition to New York
rediscounts. bringing the .total to the
highest figure in a month. may have SOME
connection with the recent large float
ing Of home and foreign loans; for al
though such securities can not serve as
| collateral for 'rediscount. the same facili-
ties might indirectly he obtained through
pledsipg merchants paper.
This must be largely a matter of cor
| lecture. The increase has this aspect
| Of interest however that the recent
sweeping reduction of rediscounted paper
| even at New York the shrinkage UP to
| last week had been II per cent since the
| year began and 30 per cent from year
| aEo-has aroused some query as to
| whether a reserve bank would not lose
| all control over the money situation "
| 1t had ceased to be an extensive lender.
| might exert small effect il no one wished
| to redscOunt.