The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-01-27
INxIETY ABOUT
SOLDIER BONUS
AFFECTS BONDS
By STUART p. WEST.

-.,tets today the chief character
,.,,c was hesitation, disposition to
: slow about entering new COM
ss,ments until more light was
.t-own upon the immediate course
!, the business and financial stu
..,on In stocks the principal
s.rrca of misgiving was how the
~srket would take the 1921 reports
~hieh are to come out within the
s.rt few weeks, whether it would
,sgard them as water over the mill
- whether it would allow itself to
~ depressed byN the heavy losses
ssat will be revealed. In bonds the
nain anxiety beyond question was
sua TO the effect which soldier bo-
nrs legislation, with its threat of a
hinge new issue of government Sc,
rurittes, would have upon the mon
~ market and upon the investment
situation in general. Liberty bonds.
which are the ones most concerned
Because they would come most di-
ractly into competition with the
new bonus bonds, continued to slip.
IN the rest of the bond list prices
we're well sustained by the uncer-
ssinty which was reflected in a vol
anne of business quite small in COM
earison with the heavy trading of
Two and three weeks ago.
On the stock exchange the trad
ing element again worked for low
er prices and weer successful in
some divisions while in others they
~ L.
heavy, influenced by the check
which has apparently occupied in
the negotiations for the two pro-
posed mergers of independent COM
panies. The oils and coppers were
moderately responsive to the SELL
ing movement and so were some of
the low priced rails. On the other
hand. there were numerous special
ties which not only held their
ground but which at times were
bid up. These movements were i'm
uortant only as showing that the
pool handling this class of stocks
felt sure Of their position despite
the action of the general market
and the reaction talk which was
heard everywhere.
European exchanges were gener
ally stronger with French francs up
Is points from their low at the
start of the week and with Ger
man marks up to so again as
against their recent low of AT.
Quite possibly the recovery in mark
exchange had some connection with
the disclosure in the Bank of Ger
many's statement that for the third
successive week, note circulation
had come down. From the high of
q month ago note issues have been
reduced only 100000 which is
very slight by comparison with the
weekly increases of three to four
billion marks during the autumn
and early winter. Nevertheless the
fast has been established that il
defatiOn has not set in to any ex-
tent check has come upon the in
faionary movement and this check
has now lasted for nearly a full
month.
Going through the quotations oil
A.24H made on Dec. IL, sterling
was higher than at any time in
1921. 1t was noteworthy that the
advance in the exchanges should
have gone on in face of the doubt
suggested as to whether the eco
nomic conference at Genoa will
ever materialiZe. This made il
clearer still that the chief depend
ence of the exchange market lies
in the adjustment to a healthier
basis of the relations between ex-
nnTfG and C
any extraordinary measures pro-
tected to help industrial recovery
in Europe.
In the end the stock market gave
a rather remarkable account OF
itself in view Of the great prepon-
derance Of hostile sentiment in the
professional quarters. With the
exception of Republic Steel, which
at one time broke badly, getting
ready for a very poor showing in
me annual report, there were nc
weak spots OF consequence. Here
and there prices went down as
much as point, but the minimum
decline even during the early part
or the day was considerably less
tnan this for the average of the
INST. Then in the final hour. wher
Traders had seen that efforts tc
drive the market down were moi
succeeding in bringing out a sup
ply of real stock, they set about
taxing in their short contracts
buying Of this character brought
ABOUT a rally which in most in
stances restored the early losses
ana left number of special stocks
higher on the day.