Evening star., 1922-01-17
LEAD:
STANDARDS SLOW
Opening Money Rate Results
in Conflicting Price
Changes.

NEW YORK, January 17.-ConHict.
ing price changes recorded at the
opening of today's stock market were
attributed in part to uncertainty aris-
ing from yesterdays sudden advance
Of call money to 6 per cent Specia
issues were strong, however, Gull
States Steel. Industrial Alcohol. Wells
Fargo Express. Virginia Carolina
Chemical and National Cloak and Suit
preferred gaining l to 2 points.
Crucible Steel was under further
pressure. declining 4 points and
heaviness was shown by Mexican Pc
troleum, General Asphalt. American
Locomotive, Pressed Steel Car and
Coca Cola.
Rails gave no early indication OF
following yesterdays upward trend
Highest Opening Rate for Yenr.
Traders for the long account were
not much encouraged by the Az per
cent opening rate for money. that
figure being the highest initial quota
tion of the new year.
Standard shares made little head
way activity and strength being
largely confined to stocks controlled
by pools.
or the better known issues Stude-
baker and Industrial alcohol were
most prominent with several OF the
tobaccos and motor specialties. Wells
Fargo extended its rise to 81. points
and Adams and American Express
gained gig and points.
Louisville and Nashville's rise nj
22s points was the only noteworthy
feature among rails.
Last Year Mistake Recalled.
What little hesitation was occs-
stoned yesterday by the furry in he
call money market promptly disap-
reared in the price movements today.
Aturally the rate on standing call
Lens was advanced from 3R to i1c
pc cent and most Of the new borrow
inS was arranged at the same figure. \
yea. ago Wall street made the mis-
take of putting it's bid for funds too
low, With the result that out-of-toTn
banks drew down their New York
balances because they could find more
profitable employment for these in
their localities. In consequence. the
New York money market frightened up
to such an extent in February as To
check the investment movement and
to start the decline an bonds and
other investment securities which did
not eliminate until the following
June.
Situation Now Changed.
The position now. however. is alto
SelHeT loI tue
serve ratio stood at As, and now 1t
stands at T5. and there was an acute
need for money in the interior sec
,tions to take the place of funds tied
up In frozen loans. 1t cannot be as
sumed, therefore, that the drafts dur
ing the last day or two by out-of-
town institutions have any such sig
nificance as they did twelve months
ago. But they do serve as a reminder
that redundant Wall street supply
which offers tenders so better than
3 to 3l2 per cent can automatically
where better terms can be obtained.
No Old-Time Revival Evident.
There was nothing in the stock mar
gest any old-time speculative revival
But there was a general and very
consistent display of strength
The speculative community, thrown
of the scent by the reaction talk at
the start of the month. has got back
its confidence and in some measure
even optimism regarding the bust
ness outlook. As result, holders o.
stocks are not anxious to sell and IL
takes only little fresh buying to
bring about quite substantial gains
1t was the motor stocks which were
leaders yesterday and again today.
With these went logically the shares
of motor accessories companies and
the rubber and tire stocks. The cop
per group was conspicuous and SO
were many of the minor steels, while
large number of specialties in which
pools are supposed to be at work
were bid up one after another
Motors Strong Again.
The only trouble with Studebaker
as it stood this morning was that
there were too many bulls on IL. Yet
despite the rather too numerous out
side following that was collecting.
the stock was consistently strong.
Studehaker's production for the
current quarter calls for o3.7oo cars.
This compares with an output of
l1.400 cars during the same three
months last year. whly eaIbingS
amounted to s3.25 a share.
Last week it was Chandler that lad
the motor group, but today Chandler
was the follower and Studebaker the
leader There were also signs of
reviving interest in Hupp Motors, A
large block Of which was taken at 13.
DArmrHTopr TIVE CTnCK