The New York herald., 1922-02-18
FINANCIAL NEWS
AND COMMENT
Heavy Realizing Follows At
tack OH Observation-Disclosures
Continue to Rise.

The reverse OF the recent speculative
trend was seen in yesterdays stock
market when professional traders
turned from the buying side and at
tackled several industrial issues with
considerable vigor. The resultant reac-
ton was furthered by a substantial
flow OF realizing sales. The character
OF the market practically reverted to
the condition which prevailed near the
end of the bear period of 1921, atten-
matters in industry. Even the dog
cared controversy about the aqueous
content of Mexican oil fields was re-
vived as a medium for melting short
sales of Mexican Petroleum and it's al
lied shares, which fell to more than
6 points. Partisans of the falling side
of market values had considerably the
better of it throughout the session. but
it was not clear in any news develop
ments of the day that unfavorabe
changes had occurred in the Industrial
framework or in the position of money
and credit. The Significance OF the
Bank OF England's rediscount rate cut
on Thursday with its strong suggestion
that credit easement had become pro-
nounced in the last monrh in the Brit
ish center was completely lost sight OF
in the markets. Call money in New
York remained at per cent. with sup
plies of it abundant.
Although the day was rather flat in
all the markets, there We're several de-
velopments of interest. The rather un-
expected information that Illinois Cen
asked in their annual meeting in April
to authorize $50 000. 900 OF it's preferred
stock drew quick attention to the possi-
bility~ of new forms of rail financing
have been sold to the public since 1914
and the intention of one OF the strong
systems to return to what was once a
popular and profitable method of rais-
ing funds made a real impression on
students OF the railroad situation. it
goes without saying ynat not all rail-
roads would be successful in selling
new shares, but the high investment
standing of several railroad preferred
issues has indicated for long time that
financing of that sort contains many
possibilities. 1t is likely that railroad
managements have taken notice of the
broad investment field which certain
power and light companies have un-
covered in the last four years through
campaigns of preferred stock distribu-
ton in territories in which they operate.
The markets were more confident
than before that the soldiers bonus
measure would be postponed. at least
until the next session of the Congress.
For once the entire country has risen
against a measure which its sponsors
designed at the start should bear most
heavily on the revenues OF big busi-
ness and this has been encouraging to
the financial community and interests
outside Of it who have realized the size
of fiscal and industrial problems of the
continued to rise. Some of them at
yesterdays top prices had recovered
three quarters OF the decline which
followed the proposal of the bonus bill.
Corporation bonds were a shade better
than they were or Thursday.
Extensive profit taking sales wrote
off to 2ia cents from Wednesdays last
ouotations for wheat futures. but cot
ton advanced again, helped by more
stable outlook for manufacturing in
British centers. The foreign exchanges
were changed very little from Thurs
days quotations, practically the only
feature being the relatively greater
firmness of French and Belgian francs
than OF sterling.