The Washington herald., 1922-01-07
LOWERING OF CALL
MONEY FEATURES
N.YSTOCK TRADE
Rate Drops to $40 for
First Time Since
Last July.
PRICES IRREGULAR
Movements About Evenly Di-
vided; Industrial Specialties
Raided Sporadically.

NEW YORK, Jan. 6.-The action
Of the stock market today was less
important than developments which
reflected a further easing Of money
conditions. Call money fell below 4
per cent, losning at 81 for the
nrst time since last July, and bor-
rovers who had lowered their bid
for time loans 10 tk per cent
finally found funds available at
that figure. stin another develop
ment in the sphere OF credit was
an easing Of the rate on the best
grade OF commercial paper 20 a.
per cent. In the stock market
trading took on more OF a profess
sionsl aspect. Prices moved uncer-
tainly throughout with net gains
and losses about evenly divided.
Sporadic raiding OF industrial spe-
cialties gave the market a highly
irregular appearance.
New Rate Unpopular.
The progressive decline OF Il per
cent a day in the call loan renewal
rate led the market community 70
accept as a foregone conclusion the
3k per cent rate that went into
effect before noon today. The stock
market did not respond 10 this de-
velopment for the reason that
trading Is not OF such a nature a.
to require much new money and
also for the reason that borrowers
were aware that this cheapening OF
call money would make New York
less attractive as a market for in
terror balances. July IS. 1921, was
the last previous day OF 3iz per
cent money. The long range view
OF the call money market does not
give hope OF the return OF a stable
rate approIimating those which
prevailed before the war. according
to the opinions now expressed by
close observers OF the money mar
ket. As a secondary bank reserve.
II is pointed out, call loans have
come TO share a place with bank
ers' acceptances and the govern
ment's short term obligations. II is
believed by many that this compe-
tition for temporarily idle funds
will prevent a return OF the ais
NNhl IthtNd al EdAEs NoIle flE
like az per cent conforms to the
market community's notion Of a
stable renewal rate
Steel Appraisal Complete.
Although no oficIal state ment
has been maoe on the subject. il
Is believed in some quarters that
the appraisal OF the several steel
stocks that may figure in the pro-
posed merger has been completed.
In one quarter where the merger
has been followed from the early
rumor stage reached down Co date
IL is believed that in the appraisals
property valuation. less daprecia-
tion. would be taken as twao-thirds
OF the stock values for merger
purposes and net quick assets one
third. Those who hold this belief
are rather skepticsl Of Replogle be,
ing considered in the initial merger
The strength OF New Haven and
the weakness OF Erie in todays
market were held up as an example
OF the discrimination that is being
practiced in buying stocks at pres
ent levels. While Erie was going
through a spell OF weakness. de-
clining TO within an eighth point
Of the lowest price on record, New
Haven was enjoying some good
buying and advanced a fun point
to 1879. The strength OF New
Haven followed an oficial report
that the company's locomotive shops
would give employment to 1000 ad-
ditionsl repair men on January ?.