The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-09
FINANCIAL NEWS
AND COMMENT
Stock Trading Still Heavy and
Rails Reach New Highs
for Year.

Dealings in stocks showed no letup
begun on M rday morning and con-
tinued throughout the week and the
railroad group was carried to a new
high price level for the year. The action
taking was put through on an extensive
scale, but when the heaviest pressure
from that source lightened at the end OF
the first hour irregularity was pretty
ufacturing. oil and copper stocks left Off
close to Fridays final quotations. Sew
erai went to their years maximum
points The feature OF b1siness, as on
the preceding day, was the broad accu-
mutation of rail stocks in investment
and speculative areas. Southern Pacific
surpassed it's previous best price by
full point. as did Baltimore and Ohio, and
Missouri Pacific preferred in sudden
demonstration OF strength went more
than two points above the record estab-
lished few days ago The bond market
was on the came great scale of dealings
as stocks, railroad issues taking the
lead.
Last week was remarkable not only
for strength OF prices but also because
of an unusually large number OF differ
ent stocks to attract attention. It was
made plain that speculation and invest
mcnt had decided that favorable prog
less being made by many branches OF
industry must have constructive bear
lead at midweek. and 1t was noticeable
that the market heard much comment
about plans for expanding the facilities
Ct the carriers, which by itself was a
forccful indication that transportation
managers were Fastening preparations
for enlarged traffic later in the year.
The rise of stocks may or may not
have discounted business betterment for
several months. but all signs point tow
ard maintenance of an important factor
in any speculative movement, namely
easy money. That is not to predict that
call loans will be made under Az per
cent. for any length Of time or that the
rate may not rise occasionally higher
than 5 per cent, but bank statements
have indicated all of this year that the
process of credit defiation was going
ahead steadily. and the latest reports
show that spring demands nave not
1 nj oh 80
A comparison between the average
day to day condition of the New York
Clearing House institutions and the ac-
tual position OH Friday showed striking
changes. Despite enlarged demand for
stock market accommodation - and
brokers' borrowings expanded more rap
idly than they had in any preceding
week since January Ian Increase of
S50,000.000 in loans in the average
statement was converted to decline of
more than, $4,000 900 in the actual state
ment. That heavy retirement of loans
enabled member banks to reduce redis-
counts at the Reserve Bank. the reserve
credits of members being $40O. 900 less
by Friday afternoon than they were in
the week before. while the average re-
port showed an increase of nearly
SIS. 0O0,o 900.
The strength of foreign exchange on
the eve Of the Genoa conference was
at least indicative of market confidence
that economic problems would be APP
preached from a conservative angle.
whatever the political possibilities OF the
meeting Sterling rose to S4.4J, the
highest rate since March 2.