The New York herald., 1922-03-08
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Make Late
Gains-Large Independent
Boosts Steel Prices.

Tho strong advance Of Industrial
stocks in yesterdays late dealings indi-
Gated that speculative interests which
believed that the business outlook had
not been d..aougted In tho market had
gained the upper hand over other groups
lately working for reaction. That a
struggle had been going on for several
days was indicated in rapid fluctuations
OF such stocks as Studebaker and Bald
win Locomotive. The public was as
little concerned in those operations as
1t was at any time in the January and
February movement of prices What
evidently aided the constructive party
yesterday was the appearance of several
annual statements. including those of
the American Woolen Company, the
Corn Products Refining Company and
the Columbia Gas and Electric Com
pany, which not only showed comfort
able surpluses over dividends in 1921
but indicated that those corporations
had In prospect good returns for the
current year. The reports dwarfed In
market estimation the deficits an
nounced by several minor steel and
other manufacturing corporations and
went far to offset the effect on senti-
ment entailed in the General Motors and
Midvale Steel and Ordnance companies
reports on Monday.
A feature OF the financial day was the
retention OF AZ per cent call money
rate for all loans. a quotation lower
than had seemed probable for the early
days of this week to some who noted
the s12,000,00O deficit Of New York
Clearing House bank reserves on Satur-
day The easy money position has
clearly aided banking plans for new
security issues, as yesterdays offerings
were large and well absorbed.
Speculation In stocks carried most
recent leaders higher than they were on
Monday and also brought forward Sow
eral issues which had been hanging back
since the middle Of last week. AL
though the rise Of Consolidated Gas was
Interrupted early in the day, and later
turned into quick decline under realiz-
ing sales, the significance Of the Supreme
Courts gas rate decision was appreciated
by traders In public utility issues.
notably New York traction stocks and
bonds. Advances among them were
fairly broad. The bond market as q
whole was firm. several foreign bonds
rising briskly under good sized buying
orders.
The Importance of steel price ad-
vances put in effect by tho Jones 4
Laughlin Steel Company. one Of the
largest independents, could not be esti-
mated fully inasmuch as the $s a ton
rise was from a nominal basis on which
not much business had been done. The
way in which the increase is received
by competing companies will prove
whether or not 1t was In the nature of
trial balloon to test the attitude OF
Using to be followed by others. With
steel mill operations at 55 per cent. OF
capacity and inclined toward enlarge
ment from that figure, 1t would not be
surprising IL several companies should
seek to follow the Jones & Laughlin
lead in the case of products In light de-
mand, which in many cases have shown
no profits for several months.
Wheat prices were able to stand
abovs Mondays lowest quotations. but
renewal Of realizing sales carried
them 1@ to 1& cents a bushel lower
than Mondays final quotations, and the
other grains also lost ground. Cotton
prices changed very little.
All foreign exchanges receded, ster-
ling at It's minimum Of 4.37,1 quotation
being 6h cents under the years highest
price. reached last week. Sterling
fluctuations lately have been fairly
broad, with steadily downward ten
dency. suggesting that speculative fol-
lowers OF the market were inclined to
realize some OF tho profits derived In
this years great advance. A reaction
under similar auspices occurred late in
February. only to be followed by un-