The New York herald., 1922-03-10
FINANCIAL NEWS
AND COMMENT
Stocks Strong in Tone-Rails
Take and Maintain Lead
Victorys at New High.

Interest in yesterdays stock move
ments was subordinate to a break of
more than 6 cents a busheI in wheat,
fall OF 10 more than sk cents IN
other grains, reduction OF the call
loan money rate TO 4 per cent in the
New York Stock Exchange and to az
per cent. outside, a series Of rapid fluc-
tuations in sterling exchange. which
apparently reflected unusual events in
British political happenings. and a gen.
orally strong market for bonds, led by
Victory ANS, which reached a new high
point. All OF those events were worthy
Of more comment than can be presented
here. but it can be said that none Of
them denoted any unfavorable factors at
work In trade and industry. On the
contrary. the easement Of money at
time when each Of the last two years saw
stiff quotations just previous to an in
come tax payment week had constructive
Importance. There seems TO be less
chance OF reversal OF the call money
position than on previous occasions In
the last winter. as Interior banks have
cut down their Reserve Bank redis-
counts measurably in the last two
months and have less reason for with
drawing their New York balances
The tone of stocks was strong, several
railroad issues stepping into the fore
ground and maintaining their position.
Canadian Pacific and several lower
priced shares advanced point to more
than points. Automobile stocks were
the outstanding feature Of the Industrial
group. their gains being especially note-
worthy because none Of them were az
fected by the Chandler Motor Company's
report for 1921. which showed fewer
OF dollars share available for divi.
-dends In the year before and q final
large deficit after inventory writeoffs
Fertilizer company stocks Increased the
advantage that they gained earlier
in the week. 1t could be said that in
dustries represented by those two
groups of stocks reflected seasons ex-
pectations OF Increased consumption,
supported by evidence that orders to
date are running ahead OF those Of last
year.
The reaction of grain prices was
doubtless surprising to observers not
familiar with speculators' habits. The
report OF stocks on farms on March l
CHI
and corn than there were a year before,
and, In the light OF probable small
yield in Argentina and elimination of
Russian fields from world market con-
sideraticns, 1t was decidedly bullish
factor. But the great advance OF grain
quotations in the last six weeks had
aroused the desire OF traders to make
sure Of their profits, and the Govern
ment's report evidently was the signal
to sell. 1t will be only when fuller in
formation about the winter wheat crops
condition is at hand that the trade can
determine whether or not recent high
quotations for futures fairly measured
values.
The erratic course OF sterling was re-
corded in a swing from the opening
price of 4.35 up to shade higher than
4.36a and then back to 4.34T. Tho
final quotation Of 4.36% was slightly
less than Wednesdays closing. Francs
were heavy for time. but recovered.
while marks were steady around .40%.
The action of sterling showed that the
market was moved to think no less of
the underlying position of rates because
of Britain's position in Indian and
Turkish affairs. A feature of London
exchange since January 1 has been its
sturdy resistance to pressure after re-
actions OF weeks duration.