Evening star., 1922-10-09
STOCKS MOVE UP;
/ LOAN IS APPROVED
New 4 IDS Make Advance.
Steel Commons New High.
Oils Lively.
BY STUART p. WEST.

UiiS Lively.
BY STUART p. WEST.
NEW YORK, October s.@The princi-
pal point of interest in the financial sit
uation today was how the markets
would receive the over Sunday an
nouncement of the new $500. 200. 900 gov
| ernment loan.
AS it turned out, the news had little
erect one way or the other. Liberty
bonds went off but to a trifling extent
only The general investment list was
| steady. and the stock market kept on
with the new forward movement which
got under way last week
A month ago, when the liberty loans
| We're selling at premium and when
there were instances even of new
municipal quotations being put out
under per cent, long time Treas
| ury issue would certainly have been
expected to go at better than a Az
per cent rate. But since then in an
ticipation of new government obliga-
tions competing for investme mt
capital. the bond market has been
! coming down.
| Liberty bonds have gone back to
par, corporate bonds are off to 8
| points from the top. In view of this
and bearing in mind the necessity
of making the new offering sufficient
! ly attractive to induce the CON
| notes. the Az per cent rate is not
| surprising.
At nm Advance.
! The bonds Immediately sold at a
premium Of u per cent, which proba-
| bly, measured the slight additional
attractiveness of the thirty-year issue
over the present liberty loans. having
shorter time to run. But at the
same time the fact that all holdings
in excess of $4,000 are subject to the
surtaxes indicates the expectation
that the new loan will be taken up
by small investors. without having To
make a special bid for wealthy cap
| dens.
| Steel Commons New High.
| The keynote for the stock market
states Steel common went through
! It's previous high of the year In the
| eyes OF professional Wall street this
was an occurrence of great signifi-
canoe. 1t meant the Inauguration of
| a fresh advance, not only in steel
shares themselves, but in the mar
| kets generally.
great rush of buying Immediately
swept steel common upward more
than two points and stirred up specu-
\
sEar' s.. the equipments. the motors,
the public utilities and a variety of
stocks of the speciality class.
Look for Good Tonnage.
The direct incentive for the buying
or the steels was the anticipation of
An unusually favorable tonnage state
ment for the month. out Tuesday.
But mainly II was the demonStra-
tion of the thoroughness with which
speculative interests. working for
| higher prices. had got back the grip
| which they lost temporarily during
the latter half of September
| The ground for steel share specula-
ton was Legitimate enough in the fact
! that the steel trade is back to a 20
per cent production-the maximum OF
! last June-while the steel prices are
| sufficiently above what they were
| wage schedules.
| There were two versions regarding
the motive for the rise in Texas Com.
pany today. One was that it was get
ting ready for another stock dividend
the other that it meant there wa.
something in recent Wall stree
rumors of a deal with some other oil
company. Having redeemed out OF
earnings. without any fresh borrow.
ing. some s27.000.000 of its sera
notes. Texas Company is in a good
position to give something extra tc
its shareholders.
Announcement of the 1nterborc
Rapid Transit reorganization plar
| was the cause of an active advance
| in the company's bonds today and il
| brought some buying into the Inter
, boro Rapid Transit stock. However
| inasmuch as the plan wipes the Inter
| boro consolidated off the slate al
| together. there was rush to save
| what little remained in the shape OF
| market value in these stocks.
~y{s Tod Stof
| sumed its old leadership of the mar
ket again today and moved ahead
| steadily into new high ground above
| 108. The incentive back of the buy
! ing of steel common is that the cor
poration. in its monthly untitled ton
| mage report, is expected to show ton
! mage increase of around $4,000 to
| 100000 in untitled orders for Sep
| tenn ber. The largest previous gain in
untitled tonnage was 602,769 tons in
| April.
StrOmbers Carburetor.
| Stromberg Carburetor's sales in 1922
are expected to produce a net profit
Of about 100000. or at the rate of 81
a share on the $4,000 shares of no par
value stock. This would compare
with only slightly over 81 share
earned In 1921. when sales slipped
off over s1,00o.oo0 from the previous
| year.
, Stromberg at the present time Is in
the strongest financial and physical
condition in its history.
The Closing.
| The stock market came down
somewhat with the course of the
| afternoon, as was quite natural after
| its abrupt rise of the morning.
| Call money loaned as high as per
cent again, but the renewal rate of
Az per cent told the story Of an
! abundance of credit available for
! Wall Street uses at rates remark
! ably low for the season when CROP
moving demands are pressing upon
| the market.
| The public service commissions ap-
proval of the Interboro Rapid Tran
sits reconstruction plan was logically
\ enough expressed IN higher prices for
the bonds and the old stock and a
decline to normal quotations in the
| shares of the holding company-the
Interboro Consolidated-which is now
| to disappear.
| More Melons.
The spectacular advance in Stand
| ard Oil OF New Jersey on the stock
| exchange and in Vacuum Oil on the
| curb called for no comment other
than the obvious one that other
! Standard Oil Companies are getting
ready to capitalize surplus for the
benefit of stockholders after the man
ner of the California and Indiana sub.
sidiaries.