The Washington times., 1922-06-22
aoHsgYS HE##P" B BUSINESS AND FINAN c E 5#%
Market Comment
By CosmopolItan News Service.

= NEW YORK, June 22.-This
weeks reduction of the rediscount
rate Of the Federal Reserve Bank
OF New York was the sixth in the
downward revision of official rates
since May, 1921. On May s the
rate was reduced 'front.' to 6h per
cent, followed by a further cut on
June 16 to 6 percent; on July 21 to
5h per cent, and on Sept, % to
per cent. On Nov. 3 the rate was
pared down to AZ, at which figure
1t has remained until the present
time. The example Of the New
York directors will doubtless be fol-
lowed by the other reserve banks
throughout the country. one at least
of which has already submitted the
matter for approval to the Federal
Reserve Board.
Both officially and unofficially
money rates are now the lowest
since 1917, call loan rates having de-
scended below 3 per cent; merchants
paper to around per cent. and
bankers acceptances to per cent.
1t Is not likely that there will be any
tightening of the rates. except tenn
porarily, before the call season. In
cidentally, the Reserve Bank redis-
count rates are the effect, rather
than the cause. Of low rates in the
money market.
The long-awaited annual report Of
the Mexican Petroleum Company for
the year 1921 has made its appear
ance. In brief. the report sets for
ward the earnings Of the company
last year at $22 ,449, ,426, a gain of ST.
100000 over 1920. and representing
net profit of $26.S2 a share on the
common. The company had very
successful record last year. but the
present favorable outlook is of more
consequence than the 1921 earnings.
On the listed stock exchange there
are stocks Of a good many compa MES
which earn considerably more than
$26 a share. but on which the quota.
tions are a good deal lower than that
Of Mexican Petroleum. Pan-Amcrl-
can also had a very good year. its
earnings being 30 per cent more than
in 1920.
1t is expected that the governments
Of Great Britain and France will in
short time dispatch to this country
their representatives to the worlds
war foreign debt funding commission
slider the status of the war debt Of
our former allies. A preliminary
meeting Of the commission was held
in the latter part of April. Subject
to the approval OF the President, tine
commission has been authorized to
refund or convert into other obliga-
tions the sums borrowed by foreign
governments during the world war.
The subject is one in which a great
deal of interest prevails. and about
which there IL a great difference in
opinion both in expert financial cir &.
cles and in circles which have given
the matter only superficial study.
On May Is the total war debt of
European countries to us was S11,-
456, ,3S3,059. The largest creditor was
Great Britain with s4.6S5. .S62 $50;
then comes France with $3,770,-
906. .656; Italy, 1881 ,514.634: belgium
$42S $50, ,2S7; Russia, 1921, ,801 500, and
Poland. s14s.594,423.
The Department of Commerce at
Washington publishes an extremely
optimistic survey of current business
conditions as a result of the tabula-
ton OF special reports from its own
agents.
1t stresses particularly the con-
tinued increase in the iron and steel
industry, sustained activity in the
building industry. marked increase
in production Of automobiles, lower
interest rates, increased demand for
money, increase in employment, de.
cline in business failures and con-
tinued activity Of the investment
markets.
The merger OF five corporations
engaged in the manufacture Of tools
has been arranged under the name
OF the Consolidated Machine Tool
Corporation Of america. which has
been Incorporated in Delaware with
a capitalization of $50 900 900. Con.
ferences to arrange the merger have
been in progress for about one year.
Included in the merger will be
these: Belts Machine Company of
Rochester, N. Y: Colburn Machine
Tool Company Of Cleveland, Ohio;
Hilles and Jones Company. Of vii.
-