The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-01-11
LIGHT TRADES
INSTREET KEEP
CASH IN BANKS
RY STUART p. WEST.

rsw York, Jan. 1.-THE princi-
=, interest again IN today's mar
-. centered in the various mani
s.~tstious of the great supply of
fSle money piling up at the reserve
.;s;ee No further reduction occur
"a In money rates themselves, but
~ time loan market got more def
s.,teIy established on a 412 per
mt level. This rate applied to
.tock exchange loans containing as
soJlatersl a mixture of rails and
s.dustrials and nothing else as Sc
srrity were readily accommodated
Al ~ per cent The banks found
= extremely difficult, in view OF the
slsuder demand for speculative pur.
,oses. to lend their available bal
mes TO anything like the full. In
Consequence these unused funds
tvrned again into the market for
.eeeutances and into the higher
rnarters of the bond list. The en-
fire group of victory and liberty
bonds reached new prices and
standard railway issues were up q
! half point or more all around. The
bond market, besides the stimulus
aforded by the drop in time mon
ev is also feeling the relief from
the partial let-up during the last
week in the outpour OF news secur-
ity offerings.
The stock market was dull during
fhe greater part of the time but it
was a good deal stronger than
MANY of the experts had been figur-
ing upon. The professional rank
and file had been basing their opin-
inns on the theory that the reac-
tion which started on the very first
day of the new year would be car
RED considerably further. They
had been selling stocks short on
this notion and the result was that
the interests gradually expanded it
until 1t reached at the outset of the
present week, very respectable di-
mensions. Both on Monday and on
Tuesday the market had stoutly re-
sisted all efforts to get prices
down. Here and there it was pos
sible to break individual stocks but
this did not have the desiiNd eff
feet of precipitating a general sell
ing movement.
Today the short interest COM
meneed to display misgivings as to
whether it had not misjudged the
market position. The advance, for
the most part was confined to the
highly speculative issues in which
bear" traders had been active
Where there was little or no short
account to work upon the rise was
comparatively small. 1t was sig
nifcant that the oil shares should
have been among the leaders in the
recovery when another all around
cut of a cent gallon in gasoline
prices was announced by the Stand
ard Oil company only this morn
ing. The inference from this is
either that the oil shares, in theiI
recent decline, had discounted the
cutting of prices, or what is more
likely, that it supported the view
held by representative oil men that
these prices reductions are only
temporary.
Wall St, Mex York, Jan. IL
The one incident of note in the
foreign exchange dealings was
further sagging in German marks
while other rates were holding
firm. Marks. around So compared
with the quotation of so on Mon
day.
The iron trade journals today, de-
seribing the steel situation, struck
hopeful note regarding the pros
poets of increasing tonnage in the
new year Wire troubles due tc
the storm accumulated the dizziness
on the tsock exchange, but prices
held their early gains throughout
very listless afternoon.