The New York herald., 1922-01-21
FINANCIAL NEWS
AND COMMENT.
In Strong and Broad Market
Steel Common Hits New
High at 38.

Highly erratic fluctuations cf several
steel company shares disclosed yesterday
the presence of powerful speculative
forcesin the market and 1t was evident
in the general strength and breadth OF
dealings throughout the session that a
degree at least OF public participation
had been attracted by weeks effort BY
professionals to advertise particular
groups OF stocks. The market as
traders of large capital who believed
evidently that the time TO exploit known
plans for the consolidation of steel con-
Germs had arrived That mergers were
under way has been known for consider
able time. The economic tendencies Of
the present period suggest grouping OF
units of particular industries into large
corporations as medium for returning
to basis OF profitable operation. Hence
! it has not been difficult for the Street TO
visualize combinations of sugar produc-
ing and refining companies and of cop
per companies, the effect being plainly
demonstrated in yesterdays advances OF
to . points in many stocks. Doubtless
! the rise was furthered by the hasty re-
| tirement OF a substantial short interest,
especially among steel stocks. United
States Steel common stock was bid up
ward to IS, topping its best previous
price of the year and of 1921 as well.
The turnover on the New York Stock
Exchange ran in excess of 100000
shares for the first time since Deccm-
Der 10.
| Whatever ones theory may be about
| underlying industrial conditions and the
prospects OF the next six months, the
fact was clear in the days trading that,
with the exception OF railroad issues,
stocks were in persistent demand. A
fall of 20 points in Gulf States Steel. fol-
| lowing an early advance OF half that
amount, was not surprising in the light
or that stocks precipitate rise in the
earlier days of the week. But the ability
of other issues to stand UP after that
collapse--they actually were stronger af-
terward than before--denoted sturdy
|
ers found nothing in a y per cent. call
money rate to daunt them, as reason was
found in study of the weekly Reserve
statement to believe that supplies would
be adequate even though, to attract Of
ferings from outside cities, the New
than the recent and 31s per cent. quo
| tations.
| The market was perhaps too closely
centered in steel and sugar stocks to
convince the skeptical that the dawn of
a new speculative day had arrived.
Most oil shares were inclined to lag
behind the leaders and the rails were SO
completely neglected as to show that in
| tcrest had been transferred from them
TO industrial issues. Bonds also were
overshaGowed by the forccful bulge of
manufacturing shares, but prices held
UP very we'll in spite Of a decline in the
volume Of business. The bond market,
as far as accumulation by dealers of old
line issues for the rise was concerned,
evidently was checked several days ago
by knowledge that large blocks OF new
! and attractive securities were to be Of
fered to the public next week.
Most European exchanges receded
plainly influenced by support accorded
Premier Poinceres policy in respect to
German reparatiohs. Sterling went off
a cent to 4.21h francs receded Sls
points to S.11 and marks crcpt back un-
der the so cent level. leaving off at .49s4
cent mark.