The New York herald., 1922-04-07
FINANCIAL NEWS
AND COMMENT
Stock Sales at Highest Record
in Strong Finish-Call Rate
Up to 5 Per Cent.

The principal feature Of yesterdays
stock market was its great activity, all
other sales records of this year on the
New York Stock Exchange being sur
passed. Prices continued upward with
force, which showed that speculative
enthusiasm had not begun to slacken,
and a stiffening Of the call loan rate
from AZ per cent, to 5 per cent in the
afternoon acted merely to bring for
ward a moderate amount OF realizing
Sales but they were insufficient to pre-
vent strong closing. Tho underlying
money position contained no new fac
tors. collateral time funds being in fair
supply at ~ and ~ per cent. but the
Reserve statement suggested that spring
demands for money and credit were
being felt this week for the first time.
An increase Of $4,000. 900 in circulating
notes. disclosed in the consolidated state
ment OF the Reserve system, was the
initial expansion. except a very small
enlargement In the week Of March /,
SiHCc Litc SHTlSIIudB season..
The unusually large breadth of active
buying Of bonds recorded no apprehen-
sion In that market lest money rates
might become firmer. The market took
so kindly to the $14.oo0,oo0 Czecho-
Slovalxian s per cent. issue that It was
subscribed almost Immediately after the
books were opened. and transactions in
the open market added a full half point
to their offering price. That sale is
worthy Of reference as a landmark in
after war financing, as tho bonds, al
though physically we'll secured by levies
on customs revenue and proceeds OF a
profitable tobacco monopoly, are, never
theless new to American investors. A
loan to Czecho-Slovakia Is, in the nature
of things. pioneer financing. Less sig
nificance was attached to the oversub-
scription Of Londons portion Of the
loan and tho large applications for the
bonds in Amsterdam than to the recep-
tion accorded to them in New York.
Bonds were in heavy demand through
cut the session, the First. Second and
Fourth Liberty AZ per cents. going to
new high points at the same time that
numerous railroad issues also COM
manded the best prices of this year.
Only two of the various series OF Liberty
bonds were under 90. and the fact that
yields which several returned at yester-
days quotations was still q trifie higher
than many municipal bonds presented
suggested that par was not 50 very far
away.
Attention was drawn to German
finances by the tremendous Increase in
note circulation disclosed by the Reichs-
bank In its weekly statement. The ex-
pansion of 7.7sLsoo. 900 marks, by far
the largest for any week since the print
ing presses were speeded up last year.
carried the currency issue to level
OF Is per cent. more than the excep-
tional total extant at the end OF 1921.
In the light Of such changes It is no
wonder that bankers are devoting moro
and more thought to possible ways for
scaling down the German paper money
prior to return to sane monetary bases
in that country. The big gain last week
evidently was connected with operations
incident to the fiscal years end, but
the question whether or not the Reichs-
bank ever can make real steps in della
ton while present conditions prevail
remains unanswered. A large Increase
Of the Bank OF Frances circulation was
also a product Of year end transactions,
but that institution has shown much
ability In cutting down its notes when
q special need has been passed