The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-12
FINANCIAL NEWS
AND COMMENT
Stocks Ride to Higher Levels
in Vehicle Made by New
Angle on Easy Money.

Probably the most encouraging OF
several outstanding developments yes
terday was the news from Washington
of new one year Treasury certificate
issue in the amount OF s2OO,OOoO00 at a
rate OF 81 per cent.
This was a real surprise to many
bankers. who. while they did not feel
that there was any indication of per-
manent tightening Of money rates al
this time, were anticipating a per cent
rate on the new issue. The offering was
accepted by Wall Street as a satisfac-
tory indication of the immediate future
of the money market, for Secretary Mel
Ions judgment in gausing the money
situation OF the nation has come to be
regarded almost with awe.
With brokers' loans variously esti-
mated all the way up to $1,000, Oo0. 900.
there were many in Wall Street who
were beginning to feel that the time was
at hand to call a halt In speculation.
Now, however, with this new evidence
of an easy market for funds in the days
to come there has been a very material
revision of opinion in that regard.
While 1t Is not unlikely that temporary
fiurries will occur from time to time.
occasioned by periodical tax payments
and other similar drains which from
time to time are put on the cash box
OF the nation. II is not at all likely that
there will be a material stinening of
money rates for long time.
Other factors which found ready re-
Election in yesterdays markets were the
general revival of confidence in the prob
able course of the countrys industry and
trade and the great feeling of relief with
regard to the coal situation. Evidences
that anthracite coal was to be mined
and shipped to consumers with the
greatest possible speed multiplied, and
those lines of business which have been
forced to contract materially in their
operations. In the general belief. will
soon again be permitted to forge ahead
with all the speed which their accumu-
Lation of orders will allow.
How Wall Street feels about the coal
situation at this time was perhaps best
| shown yesterday by the action OF United
| States Steel common, which went to
1868, the highest price In nearly two
years. IT is the steel companies about
which the greatest concern has beer
felt in connection with possible
shortage of fuel.
In this regard 1t is more than probable
that orders for materials and finished
products will be rushed in to the fac
tories once there is evidence of return
to pre-strike operating conditions. Bust
ness has been placed largely on a hand
to-mouth basis, and knowing that with
operations on a small scale producers
could not supply their full wants. buyers
have been content to place only such
orders as were extremely Imperative
Other business which has been held back
is Likely to be released once more.
A feature of yesterdays market was
the buying of equipment stocks. all OF
which made sensational advances. There
is nothing new in the equipment situa-
ton. 1t has been known for long
time that the railroads are going to be
big buyers of cars. locomotives. &C
There is no doubt that the equipment
companies in the next year or two viii
exceed their most prosperous years. ever
those of the wild war days. Pool oper.
atoms were easily discernible In many
of the specialties, but these were helped
along materially by purchases for &C
count of the public that has once more
regained confidence.
Cotton closed slightly lower. Bonds
particularly Libertys. were in demand
rejecting the ga per cent. Treasury
certificate issue. Foreign bonds were on
somewhat. In the foreign exchange
market there was an early recession
which was followed by speculative pur
chases that resulted in a substantial
recovery. Money rates on the Stock Elk
change advanced from to AZ per cent
| Just before the close.