The New York herald., 1922-07-10
FINANCIAL NEWS
AND COMMENT
Industrial and Railroad Prog
ress Revive Confidence in
Markets Here.
BIG PERIL IN GERMANY
Fall of Mark Below $1,000
Reflects Grave Situation in
the Former Monarchy.
BIG PERIL IN GERMANY

which IL not waning had
reached point where 1t would not have
taken many unfavorable disclosures to
it completely.
Continued Improvement in the leading
industries. the virtual failure of the
railroad strike. the extraordinary show
Ing with respect to railway earnings in
May. the continued ease of money-all
these factors made their appearance
during the last week. On the other side
of the balance sheet was further DEM
onstration of the unhealthy state of
finances In Europe. with indications of a
collapse In Germany.
II was the reports from various
branches of Industry and the breaking
Of the railroad strike which did most
in the way OF restoring confidence and
incidentally in turning the stock market
sharply about Steel making. copper
mining. automobile manufacturing and
many other lines made exceptionally
good returns and these reports were
borne out by others of a collateral ma
ture such as car loadings, &c.
Basic Industries Improve.
Industrial reports for the half year
period which became available during
the week showed that the output Of
pig iron, for instance, was more than
100 per cent. in excess Of that for the
period of 1921. The cop
per industry, too, showed vast improve
ment. The announcement that the Cop
per Export Association would retire
another 100000 of its per cent.
notes next month indicated the extent
to which sales of copper abroad had
gone ahead. These notes were secured
by copper metal earmarked for export
and it was only through the sale Of this
metal that the retirements could be
effected. When the August operation
has been completed only $1S,O00,0 900 Of
the original $4o.o0o.00o Of these notes
will be left outstanding and only 1so.-
100000 of the original 400, 900
pounds of export copper remain unsold.
These figures from basic industries
are very significant. They indicate as
perhaps no other single thing the firm-
ness and solidity of the tremendous ex-
pansion in trade and industry recently
The big increase in bank clearings has
been another straw in the wind. with
the coal strike under way since April /
and with activity in the stock and bond
markets on the wane since the latter
part Of that month, clearings have
nevertheless advanced. In June they
reached the highest point since Decem-
ber. 1920.
Roads Ahead Of Expectations.
Remarkable showings by the rail-
roads for May, despite number Of un.
favorable factors. were revealed in the
complete reports filed by the carriers
with the Interstate Commerce Commits.
sion. The aggregate earnings for May
were ss1,sS0.6Oo, which is equivalent &c
an annual rate Of return OF 1876 pei
cent on tHc leHtdtiNo Ndiudtioh aHe
from $4,000. 900 to $s.ooo.ooo ahead o.
best expectations.
Car 1oadings, too. were more or less
of a revelation. with total car loadings
for the week ended Juno - at s77.S5s
the highest mark Of the year had beer
reached.
The railroad strike was destined tt
fail. For weeks prior to its advent rail
road heads had been predicting It would
be ineffective In SO far as retardlnf
operations of the various roads was con
cerned. and their predictions were en-
tirely borne out.
Upward Trend in stocks.
In the stock market, save for a sud
den sharp break In Mexican, oil shares
on news that salt water had appeared
| in the wells in the Toteco-Cerro Azu
district, the trend was distinctly up
ward and the buying Of stocks was of I
character to indicate an almost com
plete return of confidence. Railroad
shares led the market and for the nrs
time in several years a rail move wen
! through on schedule. Other features o
the stock market were the American oil
| issues and the investment stocks. Amer
| ican oils were aided materially by th'
Mexican salt water reports and they ad
yanced substantially.
Buying of investment issues was ir
evidence all through the week. follow.
ing the heavy trading in bonds on ar
upward scale. Such stocks as Steel pre-
ferred, American Car and Foundry pre-
ferred. American LOCOMOTIVES preferred
eta dx. astl la ia,
and most Of them made new highs. witt
Steel preferred at the highest point ir
five years.
Bond Market Active.
The trading in bonds was extremely
heavy. with United states Government
war loans making new high marks or
, several successive days. Railroad bond:
likewise reflected steady buying, and
most of the active ones advanced int;
new high ground. The trading in bonds
OF Industrial concerns was less active
but equally effective on quotations.
The credit situation during the last
week showed little change.
| Call money continued to range rathe,
high because the shifting OF funds ir
connection with the July interest pay
ments had not been entirely completed
up to Friday. rather than because OF q
scarcity of money. Time rates wer,
practically unchanged.
Foreign exchanges. with the exception
OF sterling. showed notable weakness
German marks led the downward swing
getting below 20 hundredths OF a cent
! This was but one more indication tina
the complete financial collapse OF Ger
many can hardly be avoided unless
drastic notifications are made In tn,
reparations terms--and perhaps no