Evening star., 1922-06-07
MONEY LOWER, BUT
STOCKS ARE SLOW
Loans for Day 3 Per Cent.
Confusion in Movement
of IndustriaIs.
BY STUART p. WEST.

NEW YORK. June THE main de
velopment in the financial situation
today was a further lowering of call
money rates.
The renewal of standing loans
which on Monday had been fixed at
~ per cent, and on Tuesday at
per cent, was put down TO ~. and
use during the day only at per cent.
The time money market, too, was
easier. although the prevailing quo
tation OF Az per cent compared with
the seasons low Of z month age
This was another demonstration OF
the many given this year that when
Wall street drops its bid to 3 per cent
and keeps It there out-of-town banks
drawn down their balances in guam
titles sufficient to bring about an up
ward recoil But 1t is just as true
that when in the course of this re
action the call money markets get
around the per cent level these out
side funds quickly flow back and
force rates down again.
Today's softening process was the
more significant in that il occurred
despite government Withdrawals and
that 1t came, furthermore, within =
week OF the income tax payment
which always involves a considerable
temporary Withholding OF money 10"
use in Wall street loans.
Did Not Stimulate Market.
1t could not be said that the low
ering of money rates provided an
fresh stimulus either in the bond or
stock market.
Liberty 3hs again made a new higl.,
and the other United States war loans
sold at or very close to par. The
general company list was irregular.
but somewhat more active. 1t was
an equally fixed movement on the
stock exchange.
=
the 360.000.000 cut in shopmens
wages. which followed the $60.000,00o
reduction ten days ago in wages Of
the maintenance OF way men.
Working Easier.
In fact, outside Of a few low-pricsd
shares in connection with which there
was merger gossip" the rails were
inclined to work lower The explans-
ton lay quite obviously il the fat
that the latest wage cut ad been
fully anticipated, while the uncertain
ty as to what would come OF tls
strike vote was a deterreace to i'm
mediate speculative interests in rail-
way securities.
In the industrial division OF The
market there was the now familiar
extreme confusion in the movement Of
individual stocks. Among the oils
bettered their previous high figures
for the year. Phillips on the prospect
of a union with other oil properties,
and Cosden on high estimates regari-
ing the present earnings OF tho COM
pany. Sinclair Consolidated made some
response to the sale of its interes.
In Mexican Seaboard, which WI
bring between ss.0o0,000 and 100000
cash into the Sinclair trea sury. But
other members of the oil group were
as rule neglected.
Copper and Steel Lower.
Copper shares went down for 4
time. and so did Steel common. bug
there was no renewal of the pres
sure against the independent steeis.
Dealings in the latter were restricted
| by the consideration that il will prob
ably be another two months at least
before the mergers are passed upon
one way or the other by the Federal
Trade Commission.
Phillips Petroleum was mentioned
today as one of the oil companies
which was likely to be the leading
spirit in a merger of several com
panies In the near future. One Of
the companies to be linked with
Phillips is Skelly Oil. in which a lead
ing stock exchange house has be-
come actively interested. An an
nouncement regarding the plans of
these two companies is expected soon.
studebnker md Maxwell.
Buying of Studebaker, which at
days market, was said to have come
from speculative interests that have
been identified with all the big moves
in the stock. The essential fact in
the Maxwell motors situation is that
two separate pools are in charge, the
one of the A stock and the other of
the stock. The A stock pool is
quiescent and the B stock pool active.
this is why the B shares have been
doing so much better recently in the
market.
Activity at rising prices in the
low priced Atlanta, Birmingham and
Atlantic stock is due to the discussion
of merger possibilities. Either At
lantic Coast Line or Louisville and
Nashville, it is thought, could use the
road Before the company went into
the hands of a receiver several years
ago the Atlantic Coast Line was said
to be negotiating for it. These ne
gotiations were broken off by the
receivership.