The New York herald., 1922-05-25
FINANCIAL NEWS
AND COMMENT
Stock Market Accepts Rate Cut
Calmly-Paris Conference
Aids Exchange.

The Interstate Commerce Commits
sion's decision that freight rates be re-
duced 10 per cent. on the average came
earlier than had been expected. but It
found the security market in a recep-
tive frame OF mind yesterday. ready to
interpret the cut chiefly on the merits
of its constructive features. The chief
factor was the commissions Judgment
that b% per cent. constituted a fair re-
turn on railroad Investment in place of
the 5ia per cent. which prevailed (theo-
retically) during the first two years of
operation under the Transportation act
OF 1920. The commission took practical
recognition Of Federal taxes which fall
imposts in permitting the u per cent.
Increase. but the upturn was significant
also of the rate making bodys attitude
toward changing economic forces bear
ing on the railroad situation. Tho rate
reductions. while formidable In some
cases-wiping out fully 40 per cent. of
certain advances permitted In August,
1920--were by no means as drastic as
they seemed at first study and the firm
market In rail shares reflected that fact
fully. The cuts make allowance for
those many voluntary reductions put
into effect by Western lines and some
Of the Eastern roads last autumn. apply
ing to agricultural products. coal. &C.
When the latest ruling is applied on
July i 1t will cut these tariffs very lit
tie, some Of them not at all, and the I'm
preston prevails that before the new
schedules are In operation readjust-
nents downward will have been suggest
ed in railroad wages by the Labor
Board.
The stock market displayed a some
what surprising apathy for period In
which the mere breath of runor is fire.
quently enough to stir prices. The rails
continued the even tenor Of their way
Shares of Industrial companies, which
might have been viewed optimistically
because freight rate reductions lower
manufacturing company costs. were ful-
iy as irregular as on Tuesday. advances
being pretty closely centered in special
ties. several OF them gaining more than
2 points. Except for pool operations
and scattered advances, brought about
by especial causes, as the az point rise
of New York. Chicago and st. Louis on
the resumption of dividends after an
eleven year interruption. the market
drifted. An easement OF the call loan
rate from 4 per cent. to ga per cent.
In the last hour of business attracted
little attention. &
The foreign exchange market found
something more stimulating than the
Genoa meeting in the conference of in
ternational bankers in Paris. Sterling
was bid UP to a point equallng this
years best quotation. 4.45k, and specu-
lative purchases helped stiffen francs
and marks In all quarters the feeling
prevails that before the Paris meeting
ends German reparation payments,
amounts and methods of liquidation,
will be revised and. possibly. a great
loan for Germany will be arranged. In
the next few days some concrete out
side banking view Of Gerrnany's credit
should appear. 1t stands to reason that,
with German consent, sufficient collat-
eral and security for a loan can bo
found which would appeal to investors
IN many countries. The German etti-
tude toward any plan proposed remains
the unknown quantity. but yesterdays
dispatches were rather cheering in ref
erence to that point.
The wheat market experienced an
other of its bewildering changes Of frcnt,
the May option falling So cents
bushel. Deliveries on that contract are
ny,n dov y,A iuh
turbing speculative calculations. Cotton
- Loo, ozuJ I'll