The Washington herald., 1922-07-29

VARIOUS ELEllEIVYS
| UNITE IN AIDING
STOCK MART RISE
Easier Money, Increased
Ratio. Hope in Strikes
Main Factors.

NEW YORK, July a6-contspus6
ease In the money market. a sub-
stantial Increase IN the reserve rstio
OF the FEDERAL Reserve banks. the
failure OF the professional bear
element To make any headway in
bringing about the reaction 20
winch yesterday's advance mirht
have exposed the market, and news
reports which Indicated some solid
basis for hope that both railroad
and coal strikes might be settled
within q reasonable time, all conn
bined to make for higher prices
during today's trading on the stock
exchange. As might have been ex-
pected. the railroad stocks led the
advance. The earnings statement
now available for the nrst half Of
the year make IL clear that, given
Industrial peace during the next eix
months. most of the roads Will
earn n substantial return even on
their Junior capital obligations, ana
buying in anticipation of such an
eventuality was the basis Of today's
trading.
Anticipated Reaction Fsfla
Professional Wall Street. which
looked for q reaction this mornIne.
after yesterdays brisk advance.was
disappointed with the exception
or declines In q few Of the more
speculative stocks which were bid
up several points yesterday, and
something like weakness in the mo-
tor issues. the aspect Of the mar
Set during this mornings trading
was one OF strength all the more
Impressive because IL followed the
change in the market trend which
took place yesterday morning. Even
stocks like Crucible. which made
such q violent advance yesterday.
declined less than a point this
morning. and the rails. which adj
vanced as a group into new high
ground on Thursday. continued on
their course today.
Activity and strength in Chesa-
peake and Ohio featured the trad
ing in the railroad group this morn
ing. but there were new high prices
made by several OF the standard
dividend-paying rails. as well az
by some OF the more speculat We
Issues In this class Pennsylvania,
which made a new high price for
the year. yesterday. advanced
buoyantly this morning. and New
York Central and b. & o. also sold
at record prices for the current
movement 90 did Norfolk and
Western Buying Of c. q o. re-
hected confidence that the dividend
rate on this stock will be Increased
before long, a confidence born Of
the company's showing during the
first half Of the year. which In
dicates earnings Of something like
IL per cent on the stock. The pres
ent dividend rate is only four per
cent, and. in view Of present earn
inCs. s per cent rate would stIu
be regarded as conservative ana
would probably result in the con-
version OF q considerable part Of
the outstanding convertible per
cent bonds. thus strengthening
cheSapeake's financial structure.
Equipments
Whether because of the pro-
nouncement OF a certain large mar
ket operator. who was reported as
expecting bullish views on tn.
equipments, or whether the markets
new confidence In the future OF the
railroads was extended 10 the euuip-
ment group, the fact remained that
there was considerable demand for
this class OF stocks Curing this
NOR session and that il was
only filled at materially higher
prices. Baldwin opened nearly
3 points above yesterdays closing
price. and while there was a re-
action Immediately. the stock was
again , points above yesterdays
close before noon. American Loco.
motive was only a fraction behind
the gain in Baldwin. and even
American Car and Foundry. which
is too high priced for the rank and
file Of market operators. advanced
? points. Lima Locomotive was also
actively bid for at higher prices.
Announcement within the past few
days OF several large orders for
locomotives, notably one BY New
York Central. has served TO make
this division Of the equipments par