The New York herald., 1922-02-02
FINANCIAL NEWS
AND COMMENT
Local Traction Shares Advance
and Steel Issues Firm on
Outside Developments.

1t was possible to trace in yesterdays
stock market a relationship between
fluctuations and outside developments
and for that reason the session, al
though dull, was much more interesting
than others OF the last fortnight. The
reputation of Mayor Hylan's transit
policy by the Business Mems League, an
organization which supported the Mayor
for reelection. had an Immediate re-
sponse in New York traction shares,
especially in rise of more than 8
points in Manhattan Elevated. At the
same time the steel company shares
threw aside early in the day the damp
ening effect of the United States Steel
Corporations showing in December and
the deficit reported by the Midvale Steel
and Ordnance Company and were made
firm by trading consideration OF this
weeks surveys of current business. Al
though news from producing centers In
dicated that January results were In
line with the unsatisfactory earnings of
December. still there was comfort In the
appearance OF enlargIng business in the
line of construction material and the
replacement Of warehouse stocks as Feb
ruary opened.
Stocks were in small supply at all
times. enabling pool operations to flour
ish among half dozen specialties. But
the buying by large groups was no more
evident than was speculative accumula-
tion Of fairly wide list of Industrial
issues, which caused numerous advances
of a point and more. The best quota
tions were established near the end of
the day despite a hardening OF the call
loan rate from 5 per cent. to per cent.
That movement, which was the product
Of extensive calling Of loans, was tied
UP with corporations month end needs
and payments on the offering Of $780,
000,00 OF Treasury notes. As the cause
sot sitter money was known generally in
the market It had little effect except,
probably, to restrict buying Of stocks to
q degree. In a day or two much of the
bank funds turned into Treasury ac-
counts should be available for tenn
porary Use in the demand loan market
and the time for definlte trend of in
terror bank balances away from the
large centers for spring agricultural and
business use has not arrived.
1t is likely that the tone of stocks
was aided by the continued upturn of
western European exchanges, as the de-
cided alteration OF the latter could not
help but spread the impression of i'm
proving commercial and fiscal conditions
abroad. Whatever betterment actually
has occurred in the last few weeks cam
not be translated into figures yet, but
it goes without saying that every, sus-
tanned advance of exchange rates aids
the purchasing power Of foreign cur
rencies In the American market. Ster-
ling reached a new high record at
4.2sM for sight drafts and francs at
s.37 cents stood at their best quotation
since May. Marks failed to improve
measurably development which needs
no explanation. but lire. Belgian francs
and other rates went forward. Evil
IDENTIFY the movement of exchange again
Influenced the progress of cotton fu-
lures. because a gain Of 20 to A points
recorded maximum Improvement of
so points. or $4 q bale. compared with
their recent low leveis.
Liberty bonds experienced a. wave Of
buying which carried their quotations
upward quarter to nearly half point
but bonds as a whole were sluggish
and uneven.