The Washington times., 1922-09-24

fined product. Cuban prospects are
favorable, and sugar shares have
shown the good results of this situa-
ton in greater stability and power
TO hold their level OF value. Good
demand for oil. and the extensive in
PRODUCTION of II as a fuel to take the
place OF coal at industrial plants, has
tended to prevent oil stocks from
suffering any serious setback. Many
shares in the textile field have con-
tinued at a higher level of value, due
to the strong demand that is being
felt for goods practically throughout
the West.
Money and New Issues.
An unusual amount of new securi-
ties has been offered. Or is in pros
pect of offering, upon this market,
many OF them Of foreign origin. The
favorable reception which has been
accorded to those already sold Is both
a testimony to the large amount OF
savings available in this market. and
also to the continued confidence in
reasonable rates for money. This
weeks Federal Reserve ratio Is re-
ported as 1873 per cent, or precisely
the same as last week, with an ad-
vance in the demand for credit re-
Elected in $4,000, 900 larger bill ac-
count. There is thus an almost un-
limited lending power available to
our banks. Some tendency to absorb
part of the lending capacity of the
smaller institutions, either in con-
nection with the moving OF crops or
with other seasonal trade changes
has already made itself apparent,
but Is thus far much below the level
which would be necessary IL any seri-
Gus reduction in available funds were
to be expected. It Is a noteworthy
fact that this season is the first in
several years that has witnessed no
inter-district rediscounting among
Federal Reserve banks and that none
appears to be probable. The report
OF the War Finance Corporation COW
erlng developments up to a few days
ago shows that more payments are
now being received than advances
made. fact which seems to indi.
cate that the period of adjustment
has definitely set in, even among
those loans which were considered
least liquidated.
MARKET Review and Outlook.
"hlle the market has resisted
pressure fairly well, considering the
threatening situation abroad, IL would
appear to be a good time for some
conservatism in the matter of max.
ing purchases. II Is very clear that
with the public already CARRYING
large lines of stocks any further
support from that quarter at the
present time cannot be counted upon.
1t must be conceded that the upward
movement has been Of prolonged
duration and that very few stocks
have been neglected in the extreme
advance which has taken place. The
running up of cali money rates to
per cent is advanced as a reason
by some people for the markets set.
back. but this Is simply an excuse
as for the past week or ten days 1t
has shown every evidence of being
in strained condition. Prices this
week have had fairly good decline,
and the situation In consequence has
been improved to that extent, but IL
is safe to assume that traders, who
temporarily are leaning to the short
side, will not neglect any opportunity
TO unearth weak spots. So far as
the money situation Is concerned,
that need not cause any particular
alarm, as the excessive reserves
held by the Federal banks preclude
anything like money stringency, al.
though at this time of year 1t is only
natural that loaning rates should be
highest. With regard to the atti.
tude of the Turks II Is still rather
threatening, and England is unqucs.
tionably confronted with a grave
situation, but this at the moment is
not regarded as serious market
factor. although II no doubt hns
some influence in holding back
would-be buyers.