The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-06-26

and as a result, to advance the real
value of steel shares. Good indus
trial prospects are, in fact, the sound
est basis for stock market advance,
and they explain the general strength
in the shares of that group, including
such issues as the coppers and a var
iety of others. The total output Of
goods, as indicated by production in
dexes, is obviously On the upward
craze, figures compiled by the FEEDER
al Reserve Board showing an adj
vance of from or to 70 per cent
in various lines as compared with the
situation a year ago. Very decided
advance as compared with the past
month is also indicated in many spe.
cial lines of business. Prices also
are now definitely on the up grade
sis demonstrated by practically all
the price index figures available. An
advance of two to three points per
month is now indicated.
Reduction of Discount Rates
Patterning after the action of the
Bank of England, the Federal Reserve
Bank of New York has announced a
cut in its rate from Az per cent to
per cent (the English rate, however,
having been reduced to 31a per cent,
a similar cut has been voted in Bos-
ton and the present expectation is
that a uniform level of per cent
will shortly be established throughout
the system. Meanwhile, money con-
tinues to be offered in abundance, and
this state of things makes it easy for
traders to carry their specialties. The
cost of money TO rbusiness purposes
has fallen less decidedly than have in
vestment funds, but has come down
materially none the less. Bankers de-
scribe money as being the traditional
drug in the market" although them
selves holding up rates as firmly as
they are able. The weeks statement
for the Federal Reserve system shows
no increase in demand for loans, the
reserve ratio rising to 1914 per cent,
a gain of II per cent.
Market Review and Outlook
That last weeks developments gave
the market a much healthier footing
was made evident during the current
week by reduced offerings. Were it
not for the various uncertainties in
HuHlBeT Vi UIdHCHSS, ouCIlS lOl III
stance, as the threatened railroad
strike, there would have been more
encouragement to buy stocks. Favor
able industrial developments have,
however, made the situation in other
respects promising, and the market,
while characterized by some irregu
larity, has shown distinct ability, Ito
take care of itself.
Squeezing OF the shorts is just as
effective in marking up quotations as
though there were a legitimate de-
mand for long account. but with this
difference, that when the covering
movement is over the demand for
stocks again subsidies. The only dark
spot in the situation apparently is the
attitude of labor which, it must be
confessed, is rather threatening at
the present time. Still, if the viewH
of the chairman of the Labor Board
and the heads of the railroads are ac-
copied, there is no likelihood of a
tie-up taking place. Be this as it may,
so long as the subject is given so
much publicity it must necessarily
have the effect of holding back many
people who would otherwise become
buyers. On the other hand. it is not
likely to cause any fresh liquidation
Of consequence, as quotations for the
general run of stocks are not unduly
high when one takes into considera-
ton the prevailing ease in money and
the revival of trade activity.
HENRY CLEWS.