The Washington herald., 1922-08-25
FINANCIAL
RAILS Are ERRATIC.
AS IRREGULARITIES.
PREVAIL In STOCKS
Northern Pacific Strength
Partially Offsets Weak
ness in Other Issues.

NEW YORK. Aug. 24.-The irreg-
ular condition which has been ap-
parent on the Stock Exchange for
the last few days was again in evil
dence during today's trading. Rails
were relatively quiet and little
changed, a number of small de-
clines being Offset by strength in
other issues. Northern Pacific being
particularly favored. AS the broth
erhood mediators continued to meet
with a committee of the more mod
crate executives and also were in
confidence with the shopmen, 1t
would appear that a conclusion that
current negotiations hold out no
hopes of a settlement would be
premature. Among the industrials
strength in steel shares on expecta-
tion of higher prices for steel prod
ucts and profitable autumn opera
tions stood out An announcement
by the American Telephone and
Telegraph Company that it would
offer 20 per cent on new common
stock to existing stockholders at
DdE CduScu q DECdh inns AooNC
from 122& to lis. A Ia point re-
covery subsequently occurred.
- This mornings stock market was
very much like yesterdays, with
some bad breaks in the few issues.
brisk advances in a few others and
the general market fuctuating
within a fraction OF the previous
days close. but a good demand for
stocks evident just under the mar
ket. The railroad issues were but
little affected by the overnight de-
velopments in the shopmen's strike.
which, on the surface at least. ap-
peared to be unfavorable. As in
the general list. there was more
irregularity in. the rails
Heavy Trading Ensues.
For the fourth day in succession
transactions on the Stock Exchange
today were in excess of 100000
shares. The market opened with
an appearance of irregularity.
which became more pronounced
during the day. In general the
steel stocks moved up. the oils and
shipping shares down. the utilities.
with the exception of American T.
and T. continued strong. while the
majority of the rails were dull and
neglected, with special strength.
however, in Reading. Northern Pa
cific, ST. Paul preferred and a few
others
Otis Elevator.
The recent movement in Otis
Elevator Is reported to be based on
a plan to declare a so per cent stock
dividend and exchange the present
stock for SIS par value shares on a
four-for-one basis. 1t is reported
that definite announcement is being
withheld until President Farlow's
return from Europe some time in
September.
England Bank Statement.
One of the reasons for the great
er tightness which recently has
been apparent in the London money
market is made clear by this weeks S
Bank of England statement. Slight
Iy more than 100000 pounds in
notes have been withdrawn from
circulation and placed in reserve.
while deposit liabilities have been
reduced by 100000 pounds. As a
result the ratio of reserve has risen
1 per cent. to 1872 per cent. The in
dication Is that the market has been
reducing its borrowings from the
bank. Although the statement
shows no significant change in gold
holdings, cables from London state
that the movement of the metal in
this direction is about to be re-
sumed. The amount shipped to
America during the past month is
placed at $4,000. 900.
Exchange.
Unsettlement in the currencies of
Germany and the continental allie<
continued to be the feature OF the
foreign exchange market. German
marks dropped TO another new low
of 0.O5ii of a cent, and after rally
ing half point. were still fun
point lower on the day. French
francs meanwhile declined to new
low for the year. giving way
points, to 1851: cents before steady
ing 20 7.7S cents. Belgian francs
and italian lire were sympathetic
ally weak, but the currencies of the
former neutrals which surround
Germany. as well as sterling. were
firm. thus confirming the impress
sion that the present weakness Is
due to a continuation of the flight
from the mark" in Germany on the
basis of the reparations deadlock.
Sterling was unchanged at $4.47%,
and Chilean pesos worked into new
high ground at 1850 cents.