The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-01-17
lONDS, STOCKS
STRONG AFTER
MONEY FURRY
BY STUART p. WEST.

wall Street, New York, Jan. IT.
uhat little hesitation was occasion
a Yesterday by the furry in the
an money market promptly disap-
,eared in the price movements to-
sav. The bond list, under the lead
:, the rails, moved forward again
.,s so did the greater part of the
.,cek market Naturally the rate
an standing call loans was adj
vsuced from 31a to AZ per cent and
most of the new borrowing was ar
ranged at the same figure.
a year ago Wall Street made the
,nistake of putting its bid for funds
"a low, with the result that out of
avn banks drew down their New
york balances because they could
end more profitable employment for
these in their localities. In con-
seouence, the New York money
market frightened to certain ex-
tent in an attempt to check the
movement and to start he-deciine
N bonds aud investment securities
which did not eliminate until the
following June.
The position now is altogether
S;ferent for the federal reserve
ratio stood at 4S and now stands
Al rs and there was an acute need
for money in the interior sections
10 take the place of funds tied up
IN frozen loans. 1t cannot be as
sumed therefore that the drafts
during the last day or two by out
Of town institutions have any such
siznifcance as they did II months
ago. But they do serve as re.
hinder that redundant Wall
Street supply which offers lenders
no better than 8 to 31s per cent,
can automatically cause a diver
sion in other districts where better
terms can be obtained.
There was nothing in the stock
market operations for the day to
suggest any old time speculative
revival But there was a general
4. and very consistent display of
strength. The speculative COM
pany, thrown off the scent by the
reaction talk at the start of The
month has got back its confidence
and in some measure, even optim-
ism regarding the business outlook
As a result holders of stocks are
not anxious to sell and it takes
only little fresh buying to bring
about quite substantial gains.
Inasmuch as the preliminary
orders point to very large volume
Of business for most of the motor
companies, it was the motor stocks
which were leaders yesterday and
again today. With these went log
ically the shares of motor accessor-
les companies and the rubber and
tire stocks. The copper group was
conspicuous and so were many oil
the minor steels while a large num-
Der Of specialties in which pools
are supposed to be at work, were
bid up one after another. The
striking feature about all these in
diVidual movements was the ease
with which they were accomplish
ed, indicating a comparatively
small supply stock offered even
where the advance was sharp.
French exchange became def
nitely weak again and in the after
noon reached the lowest they have
yet touched since the change in the
French ministry. The decline from
$50 10 STA, while not at all large
shrinkage by comparison with the
winters advance, is still enough to
Indicate the genuine misgivings in
International banking circles as to
the new French policy and how ii
will affect plans for the economic
reconstruction of Europe. Sterling
held steady by German marks con-
unued TO sag.
As the day went on, the stock
market was called upon to absorb
lot OF speculative profit taking,
but this it did readily. Studebaker
and Chandler Motors held the lead
and they made their top prices in
Inc closing dealings. So, for that
matter, did Mexican Petroleum,
many OF the steels and a host OF
specialtes. By comparison with
the industrials the railway was
dnH. But again the demand for
dividend paying stocks was very
sTong. The market in general was
busiest in the last hour and it was
significant from a technical point
OF view that the increased activity
was when the prices were at their