The New York herald., 1922-04-29
FINANCIAL NEWS
And COMMENT
Stocks Recover Quickly in Late
Trading-Call Money Up
to 5 Per Cent.

NGN~
terday's later dealings suggested that
real liquidation during the weak stages
OF Wednesday and Thursday had not
been extensive, while short selling had
furnished a cushion from which prices
rebounded rapidly under moderate buy
ing. An upturn OF the call loan rate
from az per cent. to per cent. had no
effect in checking the rise. as the mar
ket following realized that the movement
was htched up with month end require
ments and an unusually large Friday de-
mand for funds to carry undigested new
securities until Monday. The Reserve
bank reports disclose no signs of tighten
ing money rates.
The stock market was interesting In
the way that it threw aside before noon
the repressive influences which held over
from the preceding session. For a time
the rails were under considerable pres
sure, due to the impression in local rail-
way circles that the Interstate Com
merce Commission soon would order
fairly general cuts in freight rates. But
industrial issues were inclined to work
forward gradually. led by steel company
shares, and 1t was under the huoyant
leadership of Bethlehem Steel class B,
Republic Steel and Lackawanna that the
market was carried upward vigorously
In the afternoon. Fresh discussion of the
big merger, which has long been under
way, stimulated the rise of the steel
issues. and sharp bulges of such stocks
as Standard Oil of New Jersey. Stand
ard OIL Of California and Mexican Pc
troleum reflected speculation based on
recent increases in refined oil prices and
expected expansion OF demand during
the summer. =
1t remains to be seen whether or not
the rally registered the end of the re-
action which began week ago. The
days advances of a point to points
pretty well replaced the losses of Thurs
day. The recently enlarged short in
terest, which undoubtedly is ready to
run quickly because of power displayed
by prices in the first half OF this month.
makes a rally easy to stage, and pools
prepared to distribute stocks would take
advantage of temporary Improvement to
feed out their holdings. The chief sup
port for industrial shares lies in the fact
that few developments which have not
been favorable to them have occurred
and partisans of rail issues view indica-
tions Of growing traffic as more impor-
tant for the longer future than a pro.
gram of rate. reductions. 1t is worth
noting that in the cases of most roads
which have reported for March operat-
ing costs were less than they were in
March, 1921. the reductions taking place
frequently in the face of an increased
freight movement.
Railroad bonds felt the stimulus of
March earnings. although advances were
mainly OF small fractions and business
as a whole was quiet. French Govern
ment issues held steady, and. although
French and Italian exchange rates lost
a little more ground, 1t could hardly be
said that news from Genoa had ma
teriap influence on the markets. Finan-
cial circles have been more puzzled than
disturbed by events in the conference,
but with Russia's acceptance or refusal
of the proposed allied plan for financ-
ing trade through combinations OF firms
and individuals in other countries should
come light on the Soviet's ideas of eco
noniic matters. Sterling exchange at
4.41N was " cent down on the day. but
still higher than 1t was week ago.
Francs have receded no more than Is
points and lire IA points In this last
week of much debate and bitter words
over European politics.