The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-01
FINANCIAL NEWS
AND COMMENT
Stocks and Bonds Show Great
Strength-New Highs in
Liberty Group.

Inc pond market was more consistent
in its performance yesterday than was
the stock market. but together they sup
piled one of the most vigorous demon
STATIONS OF price strength seen this
year 1t was evident that speculation
played a considerable part in gains of
a point or more among bonds OF the
Louis and San Francisco, the Missouri
Kansas and Texas. the st. Louis, Iron
Mountain and Southern. the Southern,
the Seaboard Air Line and other com
panies. Such development was en-
tirelv logical in the present state Of SEN
timcnt toward railroad earnings and in
view Of the easy situation of money, as
the future OF many second class rail
issues is likely to be determined by oper-
ating results in the next few months
wide list Of bonds which sells below
mortgage securities makes, moreover,
sufficient interest return to enable
traders to carry them with less expense
than stocks that pay no dividends.
While railroad bonds were much more
turnover in all parts of the market, and
the Second and Fourth Liberty AVS
reached new high points. The effect Of
Government Withdrawals of funds on
the call loan money rate from ~ per
cent. to 5 y per cent, with late ease
mcnt to ) per cent, but time funds were
in fair supply at 4 X per cent. The tenn
porary burden on the demand loan re-
serves evidently was increased by this
weeks large purchases of securities to
be carried on credit.
The familiar process of crowding the
shorts in Studebaker, Chandler Motor
Baldwin and several closely held
speciality stocks lifted them with much
force in the morning, helping the gen.
eral array of industrial stocks forward
but realizing sales expanded as the day
advanced and the major part of early
gains was lost. In fact, the price front
disclosed much irregularity at the close
The days fluctuations were in keeping
with conventional procedure during a
speculative campaign for the rise.
Traders had profits of to ) points for
the week at the days best levels. and 1t
has been found advantageous when the
market is moving rapidly to insure
profits near the week end by taking part
of them on Friday instead of waiting
until Saturday.
The stock market was as completely
dominated by internal factors as it was
on Thursday. The same encouraging
news from steel making centers was
considered as on Friday and the copper
situation was discussed anew in the
light OF directions to managers OF sew
eral porphyry mines to renew produc-
ton to-day. In the nature of things, 1t
will be many weeks before mines closed
for months are brought back to normal
output But the announcement OF plans
for an enlargement of production
seemed to be the signal for increased
offerings of metal from existing stocks,
and the current moderate demand was
reflected in a slight easement of copper
prices.
Speculative activity was seen in Ger
man marks for practically the first time
since the wv reparations program was
announced. the rate going up to .35 cent,
IN contrast to Biz cent on Thursday.
Tho closing quotation was under the
best price. The only explanation for
the movement lay in cabled reports that
steps would be taken by the Preparations
Commission to assist Germany in max
ing an international loan. If such a
plan is receiving serious attention it will
be interesting to see how investors in
other countries react to a proposed bond
offering before something is done to
check the Reichsbank's currency output
Sterling and other European exchanges
gained a little ground.
Wheat and cotton lost part OF the ad-
vantage gain~d in Fridays sharp upturn.