The New York herald., 1922-01-25
FINANCIAL NEWS
AND COMMENT
Stock Market Irregular-Call
Money Rate Eases to 4 1-2
Per Cent.

terdzy's stock market and confined to
a dozen or so industrial issues which
had proved themselves sensitive to
moderate flow of buying orders last
week. Although business was rather
duh. it was apparent, in the character
of the shares which advanced, that pool
operations continued TO be in the fore
ground. assisted by additional comment
concerning the outlook for mergers.
Several sugar company stocks rose to
. points. There was show of strength
among steel stocks and several special
ties were bid upward with rapidity at
times. In its general aspects the mar
ket seemed to be searching for fresh de-
velopments in industrial news and the
money situation before showing a posi-
tive tendency. The expected easement
in call money occurred after standing
loans had been renewed at per cent.
and rate of ~ per cent. in the after
noon was accompanied by reports that
tie return flow of funds from the In
terror indicated that bankers of other
cities were content to put out idle bal
ances when Az and per cent. could
be obtained. But funds for collateral
time loans were offered reluctantly at
~, per cent a quotation fractionally
higher than last weeks average. and
borrowers were inclined to hold back.
The session was decidedly uninterest-
ing in all markets. On the whole there
was moro to the bond market than
there was 20 stocks. as opportunity was
afforded by the presence OF new offer
ings to see what effect they had on ex-
listing Issues of corresponding class.
1t had been expected that the new
$25, 900, 900 block of Department of the
Seine per cents. would bear rather
heavily on the French cities bonds,
those of Marseilles, Bordeaux and
Lyons, and for time distinctly heavy
tone pervaded that group. Buying or
ders appeared, however, early in the
afternoon at fractional advances from
their early prices and all of them closed
near their starting points. The bond
markets present position is one that
frequently arises during periods when
borrowers, anxious to anticipate re-
quirements or in need OF funds to meet
maturing obligations or liquidate bank
loans, are pressing forward their plans
faster than absorption can take place.
The demand for sound securities ID
large and promises to continue so until
the needs of business cause money
rates to harden, but the machinery OF
distribution is sevidently not geared
sufficiently high in all sections of the
country to take care of such a heavy
output of new offerings as has been
seen since the middle OF November. The
result has been some signs OF congestion
and the maintenance of higher rates Of
return on many bond issues than was
thought last autumn would be the case
in the first quarter of 1922.
1t is likely that the Genoa conference
win develop matters of considerable i'm
portance to the bond market of the
United States. AS financial discussion
Involving most European nations hardly
can progress far without consideration
OF means to raise reconstruction funds
for municipal and industrial use abroad,
the position of the United States as the
leading banking nation certainly will be
studied closely, and 1t would not be
strange il many requests for loans fol-
lowed the meeting. Additional light on
that point probably will come after it is
decided whether or not the United States
Government shall be represented in the
conference.