The New York herald., 1922-02-28
FINANCIAL NEWS
AND COMMENT
Markets Reverse Rapidly
Early Strength-Exchange
at New Highs.

A fairly rapid reversal OF the price
movement OF stocks. foreign exchange.
cotton and grain. which followed yester-
day demonstration Of decided strength
in the morning. was a process not un-
usual in period Of rising quotations
In fact, the reaction, in the opinion OF
many conservative market followers,
would have caused no surprise If it had
occurred week ago. That speculation.
based on expectations Of better things to
come rather than actualities OF the mo-
ment in industry, has been the backbone
Of the stock market Is admitted In all
quarters and, to a certain extent, that
influence has buoyed up exchanges.
Built on such basis. prices are bound
to feel now and .then the effect OF sales
by spectators who have good sized
paper profits. Realizing sales were
heavy in all markets in the last hour
OF business. but the result, seen In de-
clines OF a point to more than three
points in active shares and In looping
off much of the morning advances else
where. appeared to be less significant
than the earlier advances.
New high records were established in
sterling, francs. lire and one or two ex-
changes. the first going forward to
4.43 1-S for a gain of approximately two
cents from Saturdays last quotation.
The final rate Of 4.42& was more than
o cent higher. The rise of that market
stimulated foreign Government and mu-
nicipal bonds, several of them, Belgian
7ias, Copenhagen 51as, Toxic SIS, Den
mark 5s, among others, edging to their
best prices OF this year. A not unimpor-
tant factor in that movement was the
quick subscription to 100000 guilders
Of Netherland 6s. new issue, which
proved once again that easy money con-
ditions and the spreading impression
that fiscal and business conditions were
improving in many countries were receiv-
ing the sympathetic attention of inves-
tors In the United States. But refer
ence to the days bond market would not
be complete without including Liberty
issues and bonds OF railroad corpora
tions which were decidedly active and
strong. Practically all the Liberty
group gained ground. A turnover of
more than s22,00O,O0O OF all classes on
the New York Stock Exchange ranked
dealings in funded securities alongside
the close to million share total in
-
denced in smaller rediscounts held by
the reserve banks than the New York
Reserve Bank alone held ct the highest
point OF last year. are not lost sight OF
an eye to price appreciation as well as
current good yields. Call money went
from to Az per cent and was in
abundant supply. despite increasing de-
mand shown for accommodation in re-
cent days. a product OF enlarged buying
OF stocks.
The outstanding event OF the day and
one which undoubtedly helped support
railroad stocks was the Supreme Court
decision in the Wisconsin rate case. The
ruling giving prior Jurisdiction on freight
rates within the State to the Interstate
Commerce Commission was something
which the railroads had urged for many
years in their contention for central
lied control OF freight charges. It does
not follow that rates viii be materially
more profitable for the roads with the
commission in greater authority than the
State commission in Wisconsin. but 1t
should assure quick application Of rul-
ings by the former when general rate re-
visions shall be ordered for interstate
commerce.