The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-08-28

n GTUAE r. WEST.

II DTUABT r. WEST.
yall Strest. New YORK. Aug. -.
olays market WAS called upon
y ~ one hand to measure the
ect Of the emphasis laid over
nnday upon the coal strike and ,,
i ~ other hand to figure on
normsny's reply later In the week
odsr the iinal call Of the repara-
)1ons scommission for . plan OF
94axes,
Il .uas Altogether an important
land unusually interesting test for
1.-THE financial situation. Had the
Icuo been taken from the foreign
IexchAages, one would have said
THAT financial sentiment was more
hopeful over. the German position
than 1t had been. This hope was
based on the seemingly good chance
THAT the majority OF the reparations
commission would vote for mora
forum through the remainder OF
the year. But as against the best
/ rally that either the mark or the
franc h&s had in over a week there
was the sharpest break that has yet
occurred In French government Sc
curities. The Is OF the external dol
lar loan dropped nearly two points.
They sold within less than two
| points OF their extreme low in the
early part of the year and were on
| nine points from their top. At the
l same time the French municipal
bonds and the Department Of the
Selnes touched the lowest they have
ever sold for since listed on the
stock exchange.
II was hard to reconcile these
| diverse movements except on the
| assumption that the market for
| Trench securities was having a be-
lated awakening to the dangers of
the situation from the French
standpoint.
Mark Quotations.
The German currency panic
Judging by the recovery in the
mark from last weeks extreme low
Of .0411 to today's quotations,
.061k-was for the moment check
ed. But the prodigious strain which
the German financial system has
been under was indicated by the
latest reports Of the Reichsbank
showing an expansion of nearly ten
billion marks in note circulation
4 tho 10 ~ onu vraaly on ON
other factor was the advance for
the second time in a month in the
German bank rate. This rate now
stands at per cent, and the inten-
sity OF the crisis is shown in the
circumstance that the highest rates
found neces Cry in the war time
was the per cent fixed in Decem-
her. 1914, which was maintained
uninterruptedly UP to the 2Sth of
last July.
The stock market opened some
what lower Then followed ar
hour Of uncertainty during which
Wall Street pools had the courage
to bid up dozen or so industrial
issues. These experiments were
not successful. however, in sustain.
ing the general list and in the aft
ernoon under what was evidentl,
sharp drive, prices gave way al
along the line
In some of the recent favorites
there was a downward tendenc,
while, the rails at their low poin
In trading were off one-half to two
thirds Of their advance.
Just how much this downward
movement was an expression o
| concern about the over Sunday de
| velopments in the strike situation
to what extent it reflected uneasi
ness over the European outlook an,
how much it was merely natura
readjustment in speculative mar
ket that had pretty steady and ex
tensive rise were open questions.
The more sensitive position with
In the market itself was undoubt
edlysa good deal Of factor.s
1 1t was scarcely reasonable to ex
| plain the weakness Of the railwa
/ stocks as due to the shopmen'
/ strike. When all the evidenc
/ points to steady increase in tn
1 number Of new employees and whe
the figures on carloadings, supper,
ed by most Of the July traffic stat,
ments that have appeared so ia
4 indicate that the strike has dor
little harm to the railway freigl
i movement. The interesting con
parison lies, of course, between II
July figures and those for June, til
month before the walk out of til
shopcraft unions.
But even this comparison mu
| be qualified by the remembrance
that July is normally a smalle
traffic month than June. B. and {
Is one road to show an exception;
ioss-$3. 500. 900 in gross and 81
100000 in net But Atchison Jul
gross was only slightly less tina
June while net income was nearl
100000 against $4,000, 900. Nortl
westerns net operating income i
July was $S,267 900 against $1,3Ss
600 in June.