The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-27
BUYING ACTIVE
IN ALL STOCKS;
EXCHANGES UP
BIZ STUART p. WEST.

New York, Feb. 21.--The buying
movement was actively resumed in
ali directions with the opening OF
The new week On the stock ex-
change the advances continued al
though interspersed with periods
OF heavy profit taking and partial
reaction. Another extraordinary
rise occurred in the foreign ex-
change with sterling up to 8
oeuts more and with similar new
high records for all the other al
lied rates. This simultaneous adj
vance in the foreign currencies was
accompanied again by an enthusi-
astic demand for foreign govern
ment securities, both those dealt in
in London and Paris and the exter-
nal loans in New York. The COM
modify markets were not behind
the financial. Another rush to buy
M violently, and corn, too, was re,
sponsive. The rise in cotton was
more moderate but nevertheless
distinct
This very general buoyancy sig
nifed the continuation that even
the various striking upward move
,nents OF the last six weeks had
not yet measured the possibilities
OF world economic recovery sug-
gested by developments since the
first of the year. No doubt opera
tons in all the markets contain a
large element of speculation, but
it is a speculation based upon
sound principles. These take into
consideration the application, both
here and abroad, of rigid econo-
mics, the curtailment of produc-
lions, so that it has finally run be-
hind even the reduced absorbing
power of the trade markets, the
consequent abnormal reduction of
unsold stocks of goods, and along
with all this the lowering of costs,
which should go further to be thor
oughly satisfactory, but which,
nevertheless, done very we'll.
The quick disposal of the 75,000,-
900 guilder Dutch loan was an in,
cident of the day which demonstra-
ted that valuable investment re-
sources are far from exhausted,
despite the enormous drafts upon
them during the last six months.
Liberty bonds went higher, especi-
ally the third ANS. Cali money
was still maintained at per cent.
Until the federal reserve rates are
reduced again a permanently low
range for call loans need not be
expected But as the matter stands
now, whenever Wall streets bid
gets down to AZ per cent, the in
terror banks draw down their New
York balances and bring about an
automatic recovery. When they are
able to obtain rediscounts paper in
their own localities, this will not
happen.
Taking into account the number
Of individual stocks which were in
Guided at one stage or another in
the buying it was the broadcast mar
ket of the year. Even the copper
shares at length fell into line. Steel
stocks were an exception and will
no doubt be Disseminated against
until the gradually increasing vol
ume of new business leads to prices
les can again begin to make pro-
fit
There was q good deal of profit
taking in the railway and equip
ment lists. The January rail state
ments so far advanced made a fair
showing, considering that the
month is always one of the poorest
for the transportation industry. De-
creases in gross are as a general
rule balanced by operating savings.
Still there is nothing in the net
income results to stimulate specu-
lative enthusiasm, and this doubt
less explains the backwardness of
many of the dividend paying rail-
way stocks.
The speculative feature in all the
markets was emphasized before
the day was over. Early rise, not
only in stocks but in exchange,
grain and cotton, had been sharp
enough to tempt the speculative fol-
lowing to take profits. This selling
led to a partial reversal in the late
afternoon but without any real
check to the upward tendency.
From an immediate speculative
standpoint the postponement of
the Reading and the Consolidated
Gas decisions was a disappoint-
ment. But in the general railway
List the supreme court order fixing
reargument of the Reading case for
April 10, had no effect. Canadian
Pacific and Union Pacific were no.
tahly strong in the last hour. Con-
ttnued selling of Retail Stores was
regarded as a forerunner of unfa-
vorable dividend action and Tobac-
co Products were alphabetically
weak