Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-06-25
HEAP MONEY MARKET
| CONTROLS SITUATION
|ldustry Will Continue to Re.
vive Under Present
Conditions.
ArUH noNps ron cmAN0n
rcrsnt nali Moremsnt iu Stocks lie.
Heen ON the Way for Ton Months
with Little Signs Of Weak
III Walter n. brown.

hnitor New York Commercial.
Written for tho United News.l
NEW YORK. June 24.-Somowhat
resuiarly hut mona the less snsc.
8'ely the stock market is resuminK
upward course. Thoro was no
ason for the recent break excopt
ie technical situation created by
ershadowinB bull factor 10 DO
ken Into consideration. tho cheap
oney market. and AS long as that
mains nothing short OF serious
'litical laundering either hero or
broad can change the situation. In
: f" absence OF that laundering, In
is'sy VIII continue 70 revive, and
TN that prospect in view xtucks
III continue rrm. II Is Il simple
Tough formula when getting down
+ fundamentals Cheap money ere
Is "a demand FOR bonds which have
- choice because ot the SQUAD
'ss or thcir security and the IN.
rest rates they pay. Hence Liberty
'nds arc no, ONLY al par bu, al n
ibht premium From the bond mar
e' mis- investment demand steps
Fer into the preferred stocks. and
= zen tn, high dividend paying stocks.
ho :" on down TO the nondiYidend
nchs Which SEEM 10 hold promise
y proiit
The iirst sign OF r,verxaI Of posi-
on. therefore. must come IN the
IN" market. The present bull
2"Ncm"nt In socks has been On tho
ay Tor ten months hut that In
,nds for much longer period A,
Tcs.ht ih"r" ~ no sisn OF weakness.
/ bonds. and 1t Is dlnicuit to under.
ana how there could b.. with money
Ittes silli declining. At riln.s dur
III" week call money ha. prac,i-
gone begging "a; 2S-i per cent.
lh hnn'ly there has come the reduo-
ON OF the r"d'scount rate by the
FhSt'rn Federal reserve bankr
deduction II worid-WIdr.
itedhr'!on IN money rates Is world
zoe \ rev days ago the Bank OF
hSiand reduced It's rate To 3l-2 per
1nl The Eank 81 Bombay and the
ank az bengal have both come dawn
! per cent aud India's hank ratc
ne" iast February has been reduced
ON TO per cent In pre- war duvs
'''" would hsv" been closer re.
|'''"h between ihe rates ~ thc,,
[fflopS institutions, but IN. interna
ohh' now OF money IS IN som. dc,
r-- hamp"red ny the dlstortlon %,
l'inL'crce and consequently The cx-
|hhrSe rates. Cn,n there is NOR. %,
recovery or she economic sauiu.
rum. especially abroad. these ais
|repa noic- viii continue. but the un
crying principles Will remain m.
IA me
WIN money rates tumb!ing all
yer the world there Is. of course
ne one general cause which !s TO
|e FOUND In the denation OF values
nd the consequent release OF cred,,
oroiSn countries arc not able 70
eact az quickly as we can 10 the
1ore favorable conditions presented
y carrier money rates We are .x
raordinarily situated In this regard
nd have the unusual advantage Of
'eing the worlds creditor nation.
'nder its Federal Reserve System IN
iastic currency Is not only main
aimed upon stable basis. hut wa.
-ather held In allegiance until COM
modify prices should reach a ,,ab,-
zed basis. The beginning OF tina,
condition had to come about when
necessity should force buying regard
ess Of price conditions Tina, hin,
ng had to have a beginning and 1,
iaiurHliy appeared where the neces
'iiN was greatest. namely. with re-
'ard % housing Reduction in none
'atcS mndc 1t possible once more
. secure capital FOR building pur-
'oscs. and the demand for building
materials OF ali kinds set the ma
.hinery in motion.
Demand for Goods.
IL showed Itself in an end 10 the
utthroat competition in the steel In
lustry. and Just as soon as steel
'rices started In the opposite d,rec
ION the long pent-up orders for steel
u all kinds began to como into the
market and with the revival of the
teel Industry confidence spread in
very direction
Buying power thus released made
tsclf felt In II demand for wooden
ma cotton goods Cotton prices be-
gan to advance. and in the COURSE
II time the frozen loans In the South
eBan TO be liQuidated until, at tho
resent time, the Comptroller of the
currency reports that practically all
rozen loans have been disposed OF.
I appeared in a sudden revival of
nc motor industry and one OF the
est indications that the buying
owor WINS not destroyed but was
simply In state OF suspense is
hown by the fact that that industry
row booming as never before. The
i"hth OF June will show the greatest
ntput In Ford cars. including trucks
hd tractors. in the history Of that
ohcern. and as these are the lowest
>rlced cars they give the best in
lex OF the purchasing power OF the
general public. The demand for steel
md the demand for automobiles arc
propaniy the two beat business bar
meters we nave and their present
sdications are decidedly encourag.
&G.