The New York herald., 1922-05-06
FINANCIAL NEWS
AND COMMENT
Stocks Irregular at Close
Exchange on London Gains
to 4.44 SO.

The stock market situation was un-
during the earlier days OF this week,
speculative endeavor for the rise veer-
ing from one group CT stocks to another
throughout tho session. The reaction
natural in view OF their recent rapid
upturn. Buyers OF such prominent rail-
road shares as Southern Pacific, New
Haven, New York Central and Union
Pacific found offerings rather light and
their bidding carried prices forward from
fractions to nearly points. Public utii-
ity shares. especially gas company is
sues. advanced easily. scoring the days
largest gains. Although the list was
irregular at the close. there were far
more stocks with gains than, with re-
actions and an easement of the call loan
rate from AZ to 3l4 per cent. in the after
as-.inst a moderate output of realizing
sales.
The feature of the days financial mar
kets was not in securities but In the
further Improvement OF sterling ex-
change. The London rate emphasized
the indifference which it had displayed
to events in the Genoa conference with
u cent rise to 4.44ss, level higher. than
had been reached since June. 1918. At
its best quotation it stood about u cent
higher than this years previous maxi
mun, reached on March 1, and showed
that more fundamental influences than
those displayed In political chickering's in
Genoa had been ut work all along.
Sterling has been in demand since the
recent announcement of plans to re-
duce British taxation in the next fiscal
year. The tax program, following fig
ures showing that the Government had
succeeded In balancir r it's budget with
margin over, has proved to the world
that effective graphing with its fiscal
problems had brought England to a
position in which her exchange could
be counted on for normal and stable
fluctuations At the same time the
ease of money in London has brought
that market forward again as q leading
participant in financing world trade and
industry.
The other European exchanges were
fairy steady--none has shown any
marked tendency to lose ground during
the conference period-but the question
as to what is likely to happen to the
German rate if further increases of cir
culation. comparable to that in the week
OF April % occur may be raised. The
expansion reached the tremendous total
NP x-lr 1r-fvN fa1xv
equal 20 the record initiation OF the first
week Of April. The third week of April
saw q moderate contraction. The Reichs-
banks paper currency has Increased no
lass than $4,000. 100000 marks this year,
or more than 20 per cent, and nothing
through taxation plans or q bond issue
has been brought forward as a medium
for checking the manufacture of notes.
yesterdays decline OF call money to 3i1
per cent, occurring Immediately after
the Reserve Bank report had noted a
large flow OF gold away from New York.
suggested that member banks held un-
usually large deposits. They, probably.
are connected with payments for new
securities. including the recent 500. .000,-
900 Canadian Government loan. supplies
which are more or less temporary in
their lodgment at this center. But tho
plans of underwriting bankers for fur
ther bond issues denote no fears of
tightening money rates Bankers ac-
ceptances. at bid quotation of 81. per
cent, were yesterday back TO the years
minimum basis. first reached a month
ago.
Wheat prices dropped sharply, affected
by better weather news from the spring
wheat country where planting is under
way. Cotton futures backed and filled,
leaving off with trfling changes.