The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-20
FINANCIAL NEWS
AND COMMENT
Stocks Stronger-Steel Gets to
New High-Libertys Lose
Ground.

Tho decidedly strong tone OF stocks
after hesitation I'm the first half hour
or yesterdays business showed that
Tuesdays sharp reversal was caused
chiefly by internal factors. derived from
last weeks overenthusiastic speculation.
The cabled news indicated that the Ger
Russian sensation In Genoa was
Viewed in calmer light by allied
statesmen than II was on Tuesday and
that influence probably had effect in
checking sales for the fall OF prices.
In the foreign exchanges study OF the
conference news brought about fair
recovery of francs and lire. and sterling,
which had been steady all along. sug-
advancing slightly. The markets
breathed easier over the soldiers bonus
outlook because OF information that
President Harding was unmoved in his
stand against measure which, did not
embody his original suggestion of means
to raise the necessary money.
AS call money was offered in large
quantity at 81 per cent. and as steel
trade. and other industrial comment
was fully as constructive as ii had been
at any other time in this month, de-
spite the coal strike. speculation for
the rise regained some of the confidence
lost on Tuesday and swung along at a.
fast pace In the afternoon. The re-
siliency of United States Steel. which
reached a new high point for the year
at a9s4, carried In its train other steel,
railroad equipment. petroleum and auto
mobile issues and several rails for net
gains Of 1ls to moro than points. A
bulge Of AZ points in Standard OIL Of
California and of 4ss points IN Consoli-
dated Gas indicated buying of larger
caliber than attends casual speculative
operations.
The action of bonds was interesting
because of the decline OF 4 point and
more which occurred among several
Liberty issues at the same time that
foreign government and domestic
corporation bonds were recovering from
Tuesdays moderate reaction. Ever since
par was reached by the more active
Liberty bonds last week there have
been recurrent signs of realizing sales.
and that sort OF pressure evidently
accounted for yesterdays retreat. Ger
tainly there was nothing In the money
situation to explain 1t. The Street has
ceased expressing surprise that the
local reserve rediscount rate remains
at Az per cent. although there seems
to be no reason, on the surface at least,
why It should not be put down to
parity with the Bank of England's
figure. Yesterday was the regular day
for such action. but none was taken;
nor was any light thrown on the at
titude of tho banks directors.
Except for shortage in the Connells-
vile territory, in which several nom
union mines have closed down. the steel
trade has not been affected by the coal
strike. The United States Steel Corpo-
ration's steel works and rolling mill op-
erations are holding at rs per cent. OF
capacity. according TO the Iron Age, and
independent plants arc at 70 per cent.
Reports on bookings suggest that the
heavy inflow of orders in March put
many companies in so comfortable a
position that they are not seeking orders
so briskly as they did and that situa-
ton is having effect in stiffening prices.
Pig iron has advanced 81 to 50 ton
this week. a result, partly. Of nervous
ness among consumers about possible
results OF the strike If continued for
several weeks. 1t is not clear yet how
much March steel buying was FASTENED
by thoughts of the pending strike; hence
material With which to form a judy
ment as to whether or not the recent
bulge was representative OF a perrna-
nent change of steel production is alb
sent.
A sudden rise OF cents an ounce in
silver carried its price to it's highest
point Of this year-70 cents. The buy
ing was traceable to purchases for the
Far E.a ut