The New York herald., 1922-04-22
FINANCIAL NEWS
AND COMMENT
Investment Buying Appears in
Industrial and Rail Issues
-Libertys Sag.

The character of yesterdays dealings
in stocks indicated that some of the
exuberent investment buying of bonds
had flowed over into high grade indus
trial preferred and railroad shares.
while speculative endeavor was re-
strained. In the last hour a demon
stration. which savored somewhat of
last weeks professional activities. ap-
peared in Studebaker. Mexican Petro-
leum and one or two other volatile
issues. establishing several new high
prices for this year, but the markets
generally strong tone, noted throughout
the day, was the accompaniment OF nor
NAL and orderly buying, spread through
the narrowest list of the last ten days.
Transactions again went well beyond
the 100000 share total. The turnover,
however was the smallest since April 5,
and the investment quality of purchases
suggested that easy money conditions
had turned for the time being attention
toward dividend yields rather than to
profits through pyice movements.
The most impressive gains were
recorded in public utility, express, rail
road equipment and steel company pre-
ferred issues. The impression of grow
ing business in steel lines was strength
ened by news from producing centers
that orders were pressing on mills in
larger volume than in March, while the
Steel Corporations program for building
$15,000,000 tube plant bespoke pros
poets OF expanded production in direc-
increased by war orders in 1918 and
1919. 1t is rather difficult to get true
picture of coal strike effects. The shut
down Of independent mines in the Con-
reduction of coke making. which is
affecting adversely certain steel works
in the pittsburgh territory, but reports
indicate that the largest unit of the
industry is not having difficulty in main
tanning. operations equal to rs per cent,
of capacity, largely because of large
production In its own coal mines. At
the end of this month, il not before, IT
should .be possible to determine how far
new coal output has supplemented stocks
accumulated prior to April ! in supply
ing mill and furnace demands. The
strike is not altering expectations OF
continued large scale operations, and
an earnest Of the much improved steel
outlook was presented yesterday in a
renewal Of conferences between large
independent company representatives for
perfectlng merger plans outlined last
autumn.
Call money stood at 31a per cent.
The rates for mercantile bills. accept
ances and time loans established on
Thursday stayed in their positions of
ease, and the increase of member bank
deposits in the local Reserve Bank at
midweek forecast a sizeable increase Of
New York Clearing House bank reserves
to be reported In to-day's statement.
The question as TO whether or not the
abundant money supplies here are tenn
porary, expanded by the current de-
posits or proceeds of many new security
issues which will be checked out later.
may be raised. There Is. however, no
sign that such deposits will not be re-
placed by new ones, as security offerings
are coming along at a tremendous pace.
The principal strength of the older
bonds yesterday was displayed by the
second grade rails. Liberty issues
saggcd slightly and most of the foreign
group held steady.
The presence of heavy buying for
foreign account was displayed in a
cents bushcl rise of May wheat to
the highest price on the current move
ment and within "a cents OF the years
best. The quotation lost part of the
advantage before the close, but was
strong. Cotton also went forward under
sizeable speculative purchases.