Omaha daily bee., 1922-05-24

Ebr Mem 1srk WmeA
BY ALEXANDER DANA MOVES
Omaha Nee i..sd Mi,..


New York, May aJ-in old,time
bull movements on the stock ex.
change the familiar tradition was
that professional Wall street would
bld up prices OIL Saturday 10 attract
the outside public" would sell Tor
Us own account on Monday. Nhsn
the outside orders had driven the
market higher. and then would let
the outsiders put up the marker
again on Tuesday. The concluding
part OF that program has not worked
well this season; possible because the
public In the market. although a
highly speculative public. has been
a. obsiinalely bent on quick turns"
As the professional tribe itself. To-
day there was little or 10 sign oi the
spontaneous speculative recovery.
There were quite as many declines as
advances: many OF the declines ran
10 TO ? points. Even the days ad.
vanees had confused and irrelevant
alr-as with the bidding up OF Repub-
lie Steel points on the well-worn
merger rumor," while Midyale Steel.
which was TO be party to the mer-
ser, declined nearly N.
NotwithstsndinE som. irrsguiaFlty, the
investment bond market continued re-
nafhsbly firm, II shows as yet little
sign OF reaction. At least in the absence
OF further large offerings Of new seeuri.
TIES on a concentrated program Attsn.
lion wss attracted BY the rise Of tn. Lib.
efiy 3b per cents Rohy- per again. q
price touched only Que. hsfor. during
ls.?--on April i2-snd not reached prior
TO that date since January. 1890.
Exchange Il Strong.
The foreign exchange also held dis.
,incily strong. Even the Paris and Her
IN rates recovered wostly or entirely
their decline OF the day before, an.
parently showing that Mondays weak.
ness was the result OF tentative speeu-
laiive selling which did not find re-
sponse smong xenuin. dealers. II 10 In
fact quite evident that financial j,sig-
ment In largely suspended until IL can
be seen what tho subcommittee on a
German foreign loan has to propose. II
likely to report a practicable scheme.
but hardly any such proposal as was as
cribed In some OF todays cables TO the
Wen known German finaneisr. Mr. Max
Marburg, This plan as outlined sus-
gests loan Of 10000. .o0o. 900 gold marks.
based on the German governments state
assets. railways and customs: ona-half
OF the proceeds to be employed for repair
"tiohS NHl tns Ntntf NAH Tor HAhiltZInE
the mark, Such an operation Is flatiy
inconceivable. Both on Monday and
Tuesday the London stock market was
reported In the cables as dull and in
terest from the fact that beginning with
Monday the prewar system OF fortnightly
settlements and 'contangoes' suspended
by the government since the stock ex-
Iy re-establshed. The ''contago system
was based on the carrying" by 4 broker
OF stocks purchased for a speculative
customer. from the date of purchase to
the next fortnightly settlement. On set
tlement day the stocks had to be paid
for. or else the credit was continued
up to another settlement on the basis
OF what were called ''contango rates" II
| that the sudden reversion, from the sys-
tenn OF cash payment at purchase to this
Older system Of containing credits
would result In an outburst Of specula-
tive activity.
I.odon Is Quiet.
That no such thing happened may
have been partly because Of absence OF
any speculative excitement In London.
outside perhaps Of the "gilt-edged bond
IN X. sn0sfT scs FL. om
don stock exchange membership has
itself shown to outright resumption Of the
''contango system" A recent petition en-
several hundred members who claimed
to speak for 700 firms or individuals
dealing on the exchange. When return
to fortnightly settlements was decided
on. number of leading houses an
nounced that they would not accept
"contango business at all. This bears
in an interesting way on the frequently
recurrent discussion OF {ortnightly set
! Elements for New York. Presumably these
London brokers are requiring either q
cash margin" on the New York plan
or else are accepting business only from
customers Of high individual credit.