The New York herald., 1922-03-23
FINANCIAL NEWS
AND COMMENT
Stocks Electromagnetic Rate
Up to 5 1-2-BOnds Active
Led by Libertys.

A search for causes OF yesterdays re-
dictionary trend of stocks made neces-
sary the examination OF internal af-
fairs in the market as well as outside
influences vested in the strike order for
coal mine workers. a rise of the call
loan rate to 5la per cent. and uncer-
tain expectations about the Northern
Pacific dividend. acted on after business
was over in securities. Probably all
those factors acted in concert to hasten
profit taking sales, but 1t seemed as
though the markets position was more
influential than anything else. Pool
operations for the rise plainly slackened
at the end of last week. The persistent
advance Of more than six weeks had
persuaded many shrowd SPECTATORS that
the movement had been more rapid
than current conditions of business war
ranted. and they elected to stand aside
until stocks had become more settled.
Sugar issues were especially affected by
realizing operations. falling a point to
points, and recessions of more than a
point were marked against various pc
troleum. automobile and rubber stocks
at the end of the day.
Outside Of the Northern Pacific's divi-
dend reduction from per cent to a
5 per cent. annual basis the days news
was rather more constructive than de-
pressing. 1t was doubtful IL the coal
strike outlook had really disturbing
application to business sentiment. as 1t
had been known for a long time that
production b. independent mines out
side the unit. field was running high
enough to supply so per cent. or more
of current needs in industry and trans
portation, while stocks were sufficient
for two months requirements of con-
sumers. Information from the steel
trade was cheerful, estimating that mill
operations were az 60 per cent. or more
Of capacity, slightly better than those
OF the preceding week. while recent price
advances were evidently holding fairly
well despite little buying at the higher
figures.
The Northern Pacific directors clearly
elected to deal with its dividend in ac-
cordance with current earnings instead
of postponing action until spring traffic
had proved its value in revenue. The
cut to 5 per cent. was not altogether
unexpected, but the stock market COM
munity generally had thought the Great
Northera's example would be followed,
putting the stock on semi-annual pay
ment basis IN August. 1t could be said
that the reduction represented a con-
servative policy shaped by Indifferent in
come in the last six months. Northern
Pacific shares were remarkably steady,
losing only small fraction, suggesting
that the market had not sought to guess
either way about what the directors
were likely to do.
The uptLrn of money resulted almost
solely from Withdrawals of interior
bank balances. something which had
been expected to result from last weeks
3 and 2la per cent. rates. There was,
however, no noteworthy hardening of
collateral time loan charges and bonds
we're active, again led by Liberty issues.
The sterling exchange rate advanced
above 440, up nearly cents from
Tuesdays last quotations, the move
ment being directed by a change of
Ieart among dealers lin London. who
were fairly active-b bidders, whereas they
had been active on the selling side on
Tuesday morning. A late reaction left
the rate at 4.39ls.