The New York herald., 1922-07-21
FINANCIAL NEWS
AND COMMENT
Stock Market Quickly Absorbs
Realizing Sales-Advances
Outnumber Declines.


The stock market contemplated yes
terday new evidence that the railroad
strike was a stubborn thing. supplied In
the railroad labor boards inability to
make progress In working a compromise
Of disputed points. The deadlock In the
coal strike situation also appeared to be
practically as complete as 1t was before
the Government began to seek ways to
reopen the mines. 1t was not surpris-
ing. therefore. that the perpIexing out
look got on the nerves of spectators
who had sizable paper profits to con-
template, and they sold stocks some-
what more actively than in preceding
days of the week.
The market presented q sturdy re-
sistance to realizing sales. however. and
instantly upon the lessening Of pressure
among steel. petroleum and miscel-
laneous manufacturing shares pool lead
ers took q hand. Mexican Petroleum
and its companion issue. Pan American.
were advanced rather easily. the baSs-
ground for operations being made quite
satisfactory for SPECTATORS by the rela-
tion of fuel oil to coal in the present
mine difiiculty.
Increased prices for crude oil used as
fuel supplied strong lever for lifting
these stocks. At the same time refer
ence to steel company earnings in the
second quarter, notably the conversion
Of large deficit by the Republic Iron
and Steel Company into moderate
profit and the Gulf States Steel Com
pany's net income at the rate Of more
than s6 a share on the junior stock,
brought sharp bulges among the steel
stocks. The rails were Indifferent.
Various constructive industrial infor-
nation acted once more to lull appre-
hension over the strikes. Stocks ended
the day with more gains than losses and
with no point Of real weakness any
where except In Pierce Arrow shares,
which broke down evidently more be-
cause Of conditions of individual appli-
cation than of broad developments in
the motor industry.
AS the first week of July saw the
beginning Of the rail strike, the record
of car loadings in that period is of
importance from the economic point of
view. There was a reduction of 1857
J,
but as the holiday intervened this COM
parison was nullified in part. or more
significance was the increase of 77,784
cars over the number loaded in the
initial week of July last year, despite
decline of 54,974 cars loaded with
coal. The strikes restriction on general
merchandise traffic, therefore, was in
considerable in comparison with the
movement a year ago. Possibly more
| light will be thrown on the situation in
the next weekly statement by the Amer
| lean Railway Association.
The continued easy position Of money
was again reflected in bonds, several
Liberty issues reaching new high points
at the same time that junior railroad
bonds were carried forward by specula-
tive purchases. The late upturn of call
| money from 4 to Az per cent. passed
practically unnoticed, as the markets
were more concerned with 3M per
| cent. rate for short dated time loans
and the abundant funds available for
| mercantile paper discounts at per cent.
| for bills of the first grade. In the light
| OF past experience the Street believed
that a few days of current call loan
rates would attract funds from interior
cities.
The action Of commodity prices was
| rather mixed. Another rise of raw
sugar to about ~ cents a pound de-
noted strong position in regard to
current supplies. suggesting a further
stiffening In case export purchases of
| refined products expanded above the
present fairly active business. Cotton
| futures showed that the market was
| waiting for more news about the grow
ing crop, net changes covering the mod
crate spread OF to 20 points upward.
Wheat quotations went fractionally
higher than the day before.