The New York herald., 1922-05-11
FINANCIAL NEWS
AND COMMENT
Stocks Weaker After Early
Firmness-Call Money
Hardens to A 1-2.

Stocks reversed yesterday their recent
tendencies. displaying a fairly. firm front
in the morning and selling of later. with
several issues weak near the close. As
the trend of quotations, especially among
industrial shares, ignored several items
OF constructive news. 1t was evident that
internal considerations had most effect
on trading. In view Of the irregular and
hesitant character OF prices for a full
fortnight. 1t looked as though many
spectators had tired of waiting for
fresh impulses for the advance and
gradually were reducing their holdings.
The last hours reaction left many in
dustrials a point to az points lower than
they were on Tuesday. the weakest being
ones which had enjoyed the especial at
tention of pools during the buoyant ad-
vance of March and the first half of
April. Call money was quoted at per
cent. for most Of the days loans. but
hardened to Az per cent. before the bor-
rowing period was ended.
The gradual sagging process of this
month has gone far enough to show that
many bullish calculations of April are
being revised. This has less to do with
the relation Of prices to future Industrial
conditions than with stock quotations
and current business. Following prece-
dent, the recovery of the late winter and
early spring ran far ahead of actual
progress In Industry. and It appears now
as though spectators were desirous of
letting business catch up. A decided
falling off In the volume of transactions,
compared with recent million share days,
indicates slackening of public buying
and the pools, leaving the field open to
casual operations for the short account.
But 1t is to be said that the business
outlook is no less strong than when
stocks were the most insistent In dis
counting manufacturing and trade ex-
pansion. The Steel Corporation gained
in April 602.769 tons in bookings. which
represented heavy buying, because at the
rate of mill activities In that month
shipments of finished products against
old orders must have crowded 10000
tons. Although trade reviews indicate
that operations throughout the country
are slightly lower than they were in the
last half Of April. this is more the
effect of uncertainty about the coal sit
uation than of a slackened interes.
among buyers. The ingot output In
April. according to the Iron Age, was at
the rate of 36,0O0,000 a year, a ton
mage larger than all the productive ca
pacity existing In 1913 could have turned
out The average of steel prices. which
has crept forward slowly since March l.,
Is now the highest since last December.
and pig iron. due to active buying since
the coal strike began. is at its highest
level in more than year.
With the exception Of Liberty bonds
the bond market was Inclined to ease
Off the decline again being most notice
able among the railroad issues. The i'm
proved outlook in Genoa had no appre-
ciable effect on foreign bonds. except,
perhaps, to steady United Kingdom is
sues, although the prime influence
among them was the firmness OF sterling
exchange. The rate on London got up
close to 4.45, new high point lot the
year. and held most of Its advantage.
Francs went forward brislSly for time,
later sagging back part way.
In cotton, which went back on Tues
day after an early advance. strong
tone In Liverpool made Its force felt.
but after the May option got above 20
cents pound realizing increased and
closing quotations saw little change for
the day. Grain prices fluctuated quite
rapidly, the final prices showing some
reaction from Tuesdays Anal levels.