The New York herald., 1922-10-09
FINANCIAL NEWS
AND COMMENT
Confidence BOlsters Renewal
Of Buying Which Enhances
Values Of Stocks.
MARKET REGAINS LOSSES
Transportation Troubles Grow
as Car Loadings Reflect
Progress Of Industry.
MARKET REGAINS LOSSES

ing on financial markets during the las
responded TO a revival of confidence and
renewal of activity, not only by poo
and other professional operators but by
the outside public In relatively a few
practically all that had been lost IN
more than fortnight OF price declivity
furnishing excellent evidence OF che
fundamental soundness OF the general
situation in business, industry and fin
ance.
Business expansion went on apace
( The settlement of the primary labor diff
ficulties was reflected in steady in
crease in operating ratios. production
figures. etc. throughout the length and
breadth of the land.
That new difficulties were developing
I in the lack Of transportation facilities
became more and moro evident. how.
ever, and caused rather grave concern
in many quarters. The crippled condi-
tion OF the carriers equipment through
cut the country proved such that the ex-
uaordinary demands made during the
last week or ten days as a result of the
sudden renewal of activity placed ter.
rifle strain on the roads to supply the
requirements of shippers.
Car shortage Grows.
There could be but one consequence o,
this situation. namely, shortage OF
cars in condition to move traffic Thi.
shortage became more and more acute
as days went by and toward the end Of
the week was at its highest point tc
date. On September there was q
! shortage of some 24.730 cars. wherea:
on September % 1t had reached a total
OF f07,666. Railway officials presented
figures tending to show that to some ex.
tent at least the shortage of available
freight cars had been exaggerated.
In view of the rapidly dwindling SUD-
ply shippers had shrewdly put in re-
quisitions for many more cars than
they were actually in need Of. so tina
the number of cars ordered was far in
excess of the actual requirements
This would have a tendency 10 bring
down substantially the difference be-
tween cars available and cars REQUIRED
With the movement of coal the prin-
cipal consideration. the tying up OF
several hundred open top cars in the
metropolitan distr,t for want ot
buyers Of the grade of coal they con.
tanned only served TO aggravate the
situation. Railroad men at the END
of the week admitted that the situa.
ton with respect to coal cars had be.
come very grave indeed and they were
unable to see any immediate prospect
OF betterment. This shortage of suf
ficient railway equipment has served
to slow up industry again just when i
had spurted after shaking off tn,
shackles imposed by the coal strike.
In the steel industry, where th,
miners strike did much damage. bust
ness had just been resumed at a ma.
terially higher rate when tons upor
tons of finished steel were backed IN
on the steel plants by reason of inabil
ity to obtain cars Tor its movement.
Car Losdinss Near Record.
! Nevertheless. industry has expended
/ 10 the limited extent permitted under
/ the circumstances. Car Ioadings. ar
excellent index, amounted 10 973 %
for the week ended September %. ar
increase of 27,s72 over the precedino
week and sS per cent. of the high
record established in October. 1920
/ There is little doubt that II the road,
could supply the car requirements o.
shippers in full measure. a new bisl
record would have been established las
week.
similar expansion is reflected in th,
credit situation. Federal Reserve banl
circulation, as revealed in last week,
statement. stood at sea, SOL coo an in
crease Of more than s31 10000 over th,
| preceding week and the highest tots
since January. AS compared with tn,
low point OF this year-June Il. wher
/ ''N NNPdh"ANh AHoN berdn 10 Fet NnQcl
way in earnost-the systems note circu
| lstion now shows an increase OF NOR,
| than ;i5i 0o0. 600.
! Notwithstanding this expansion II
note liability. however. the reserve rati,
! is maintained At high figure b,
reason OF the stead increases in tn
\ systems gold reserves. Tho total o.
| t3,0S9. 10000 reported last week was .
| new high record and represented an in
/ crease OF s2ii.30o.000 since January / an,
! or 1863 10000 since this time last year
| That the member banks were usiu,
much more freely their rediscount priv
| ilege TO provide funds with which {,
/ meet customers demands was indicated
| by the 100000 increase in rediscounts
Standard Oils Feature Market.
Markctwisc wild speculation in stand
| ard Oil stocks has been Wall Street
| cynosure in the last week. That som,
\ OF the speculation AT least has beer
| justified cannot be denied. for durini
tho week both the Standard Oil Com
pany OF New York and the Standar,
| Oil Company OF California cut larg,
melons. amounting 20 $50. 10000 ant
! 500 10000 respectively.
AT ths Same time it appears that thu
! violent speculation In many OF tho otho
Standard Oil stocks has been muci
/ ovcrdonc and that whatever may be eX
pccted from many OF them in the wal
I x.,.. lfsttsrsn,,,ruf nil ltfs,f ,