The New York herald., 1922-03-22
FINANCIAL NEWS
AND COMMENT
Bond Market Features Day in
Street-Advance General
Stocks Irregular.

Speculative interest in stocks was
the three preceding sessions. permitting
the bond market to command the center
of the financial stage. The continuance
OF easy money rates aided Liberty
Fourth AIS to reach new high point.
While advances were fairly general
among other Government issues except
the French 7las and Ss, which rcceded
slightly under realizing sales. The
movement of bonds was quite in keep
ing with the underlying position of
money and credit costs. At the moment
there seem to be no influences i'm sight
to cause rates on fixed period loans to
advance. whether they be backed by
securities as collateral or vested in mer-
chants and bank paper. 1t is an economic
axiom that In periods when business is
relatively inactive funds which nor
mally would be engaged in industry and
trade seek a return In securities, and
the bond market is hopeful of at least
several weeks Of good absorption of
bonds.
While several stocks reached new
high levels for this year, notably Stude-
baker. Pullman. American Ice and sew
eral specialties. the market was under
considerable pressure most of the day
and left off with prices highly irregular.
!'rof operations appeared to be less sue
III than they did last week in at
ie ng following and railroad shares.
except New Haven, lost most Of their
snap of Monday. The market. however,
was not weak at any stage and the af-
ternoon upturn OF call money from 3 y
to 4 per cent. and then to Az per cent.
had no clear effect in the undoing Of
speculative transactions for the rise.
The stiffening of money was in line
with expectations, because redistribu-
tion of bank balances after a Federal
tax date normally cuts down the supply
Of loanable funds In New York. 1t is
more than likely that that factor was
supplemented yesterday by Withdrawals
Of out of town balances, following con-
ventional processes entailed in recent
low rates for demand loans. So long as
hanks have outstanding obligations at
Reserve banks under a rediscount
charge of Az to 5 per cent. it is certain
that per cent. money in New York
will drive idle deposits away to be used
in reducing rediscounts. But 41a per
cent call money cannot yet be called
high. The stock market, moreover. Is
making more account of three to six
months time loans at Az per cent.
or lower.
An early reaction of sterling ex-
change which carried it Is cent under
Mondays closing figure, was direct
response to a lower market in London.
but there was no large selling and the
quotation. grew firmer before noon.
Marks, too, continued Mondays gradual
rise, presumably helped by the Repara-
tions Commissions proposal to reduce
the gold payments in future and en-
large payments in goods. The entire
market, however, was not sufficiently
active to reflect positive tendencies.
1T was possible tol trace the days
sharp retreat of wheat futures quota
tions to reports about the winter crop
Kansas agricultural experts are looking
forward to a much better yield than
was thought possible month ago, and
snow and rainfall in the last fortnight
have increased prospects elsewhere.
The May and July options declined 39s
and 31s cents a bushel. respectively,
urging corn and oats lower. Cotton
trading remained under the restraint
imposed by New England labor troubles,
ignoring a sudden expansion of exports
Yesterdays shipments of 49.592 bales
were the largest in several weeks.