The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-03-29
FINANCIAL NEWS
AND COMMENT
Professional Buying Boosts
Prices of Stocks-New Highs
in Bond Market.

Tie stock market demonstrated yes
terday pretty thoroughly It's ability to
absorb realizing sales without giving
much ground, while sellers for the short
account found ready demand for their
offerings at all times. The result, after
period Of sluggish movements in the
second hour, was an all around ad-
vance, which put the active industrials
and several rail shares a point 10 .
points higher than they we're on Mon
day The market remained highly pro-
fessional. Spectators found that it was
easy TO lift railroad equipment, gas,
sugar and mail order store issues,
backed by argument that business in
many lines was improving. and the
money situation facilitated carrying long
lines OF stocks on margin. Call loans
were negotiated at AZ per cent
AS the easy position 81 money was
probably the most potent factor behind
the days movements OF security prices,
the bond market rather than stocks re-
tiected more pointedly the influence OF
accommodating bank balances Liberty
issues were again strong and several
foreign government and municipal bonds
reached new high points for this year.
But It was broad buying Of railroad
funded issues which stamped the true
character OF the days business, indi-
eating that the generally good showing
Of February earnings was appreciated
by investors as day to day reports were
scrutinized. The Union Pacific's gross
revenue from operations was only
slightly larger than it was in February.
1921, but economies and effect OF lower
wages were wildly disclosed in bal
ance after tax payments two and half
times as large as that in February,
1921, and in net operating income
nearly three times that OF a year ago.
reference to the Pennsylvania report
Is well worth while, as q net income Of
more than s6.oo0.oo0 made sharp con-
trast with deficit Of 1881, 900 in Feb
ruary, 1921. BY no means all of the
numerous monthly reports issued yes
terday showed increases OF gross re-
turns. but the record Of we'll controlled
expense accounts was satisfactory In the
main.
When it Is recalled that the steel in
dustry was the last to experience de-
flation In 1920 the question OF whether
or not it has Jagged behind other indus
tres this year in displaying recovery
may be raised. IF il has the increase
Of mill operations in the last fortnight
suggests that the Improvement in other
Ines Of business has gone further in the
IL st four months than statistics show.
question that steel, one OF the basic de-
rsrtments of industry, Is coming into a
really comfortable position in respect to
production, and prices are shading up
ward in fashion to forecast fair profits
in the second quarter. That outlook.
perforce, must be tempered by posi-
b,lity that operations of 65 to 20 per
cent of capacity will not go much
further this spring. On the other hand.
the known requirements of railroads
| growing instead of q slackening demand
| for material in the next few months.
Foreign exchanges recovered almost
as brislxly As they receded on Monday.
| Sterling went back TO u. gain Of
1 nearly cents. and even marks re-
s.onded to buying orders in the after
noon. Fluctuations of exchanges prom
! Use to be irregular and OF not much
consequence until more light Is thrown
/ on the movements OF commerce and
practical workings OF the German rep
| arations program.