The New York herald., 1922-06-23
FINANCIAL NEWS
AND COMMENT
Stocks Move Languidly Until
Closing Squirt Lifts Rails
Mex Pete to 1856.

Only a sudden rally in the railroad
shares and another sensational advance
in Mexican Petroleum in the closing
hours of yesterdays session on the Stock
and devc Of feature so far as the
market was concerned. Bonds. on the
other hand. were strong and active and
the Liberty issues went into new high
ground once more. The regularity with
which Mexican Petroleum has lifted the
market from the doldrums each day
for the last week or more has become
somewhat monotonous to market OBJ
ers on edge at all times in a supreme
effort to guess its course. At yestsr.
days top mark of 1856. Mexican Petro-
leuEl showed a gain of II points from
the closing figure Of Wednesday and
was more than 30 points above the price
at which the move started less than a
week ago.
The resumption of the move In Mexi-
trend in the other oil stocks. Pan
American shares naturally followed the
course Of the Mexican Petroleum stock.
but the advance registered by such is
sues as Barnsdall Producers and Re-
finers. Marland, General Asphalt and
some Of the others in the late trading
took traders more or less by surprise.
All these advances. however, were or
derly and reflected the cheerfulness with
which Wall Street views the prospects
for the oil industry. There Is we'll
defined feeling in the Street that an
other advance in crude oil cannot be
postponed much longer. The manner
in which many big producers are clos
ing in producing wells and holding down
their production at present indicates a
disposition to wait for better prices be-
fore allowing the output to reach the
figure which it could easily make IL all
wells were allowed to do their best.
Repeated assertions of leading figures
in the railroad world that the danger
great and that should the threatened
strike actually develop no great difficult
ties will attend upon operations of the
carriers have served to revive conn
dence in railroad securities. Buying
of railroad shares was particularly no.
ticeable yesterday. Since the strike
clouds first began to gather these issues
have slumped decidedly. more from the
lack Of confidence upon which buying
power must be based than from the
pressure of liquidation. AS result
many of the favorites in the railroad
group have reached levels far below re-
cent highs and have presented an at
tractive appearance to a certain type Of
speculator--the type which prefers To
gauge values by earnings. financial posi-.
tion, &C., rather than by technical posi-
ton and difficulties Immediately al
hand. Further news OF freight cuts
coming July also helped the market fol
railroad shares. bringing to attention
once more the excellent chance for a
wide expansion of business which nigh,
easily be induced as a result.
Along with the advance in the oils and
rails. some of the specialties and ship
ping stocks displayed an Enthusiastically
strong tendency. In most cases these
advances were based on the earnings
positions Of the companies, although
there were a few evidences of pool op.
erations. The reduction of the redis-
count rate was practically ignored. mas.
much as money has not been an import.
ant factor marketwise for some time
A sudden demand for funds just before
the close yesterday advanced the call rate
from 2% to 31a per cent. but this did
rot serve to check the late rally. Elk.
changes were lower most of tbs day
Although weak for the greater part OF
the session, cotton firmed up at the close