The New York herald., 1922-05-22
FINANCIAL NEWS
AND COMMENT
Prices of Stocks and Bonds
Buoyed by Low Prevailing
Rates Of Money.
INDUSTRY STILL GAINING
Trade Revival Likely to Start
Strong Competition for
Idle Funds.


funds available for demand loans In
New York were so large that the banks
had difficulty in getting them out al
315 and even per cent. Federal Re.
serve rediscounts are not only the low
est for the entire system since the
autumn of 1917. but they are now ap-
proximately "A per cent. smaller than
tho amount reported by the New Yors
bank alone a year ago.
The security markets may be-and
they have been-affected unfavorably
now and then by realizing sales. by pro-
fessional speculative attack and b,
occasional periods OF doubt, which al.
ways accompanies an era Of industria.
growth But with the market structure
supported by such evidences Of chear
and abundant money and credit as have
been seen this spring. It Is not hard tc
understand why million share days OF
the New York Stock Exchange are &C
numerous and why bankers are pressing
new financing forward as rapidly a.
we'll secured loans can be arranged.
The financial community is no longe,
mystified about the retention of a ~
per cent. rediscount rate in New Yorl
and other cities where the ratio of casl
to currency and deposit obligations Il
higher than 70 per cent
| Bank Rate Speculation Ends.
| In the East speculation about banl
rates ceased some time ago. With banl
credit so abundant, the lending rate O
Reserve banks has slight application {,
the money market. Reserve loans stead
lily are being reduced instead of bein,
expanded. Quite likely reduction O.
the rate in New York a month or 81,
weeks ago would have added fuel to tn,
flame of stock market speculation
which would have been regrettable, ant
it is just as likely that the Reserve Off.
cials realized 1t and determined to lei
the money market look after itself.
1t Is an open question whether or no,
money rates will continue to display re-
Taxation throughout tho summer or be
gin to harden when q rise Is least ex
pected. Reports from many iocalitie,
indicate that the enlargement Of bust
ness noted in March and April continue.
to grow in scope. Sooner or later in
dustrial and transportation needs will
begin to affect loan charges but that |.
not likely to happen SO long as the re.
lease Of credit frozen in old loan.
figures extensively In bank statements
And the tightening process is being post.
poned by the large and persistent fund.
ing of bank loans into securities taken BY
public investors. The magnitude of thu
latter factor In the banking Of the larger
cities probebly has not had proper plac
in the calculations OF money market
students.
Outside Of the latest demonstrations
OF monetary easement there is little new
to report at the start OF this week. In.
dustry has been able to make progress
in spite of the coal strike. now going far
into It's second month. The great effor,
TO cut down the production of a neces-
sity to the point at which business would
he hurt has not met with much success
but 1t is uncovering some rather sur.
prising collateral effects.
Eject of Coal Strike.
1t has driven steel and coke plant,
Of Western Pennsyivania to southern
fields for supplies and has added many
miles to the faulage OF fuel for miIll
in parts of the Middle West. 1t ha.
added to the cost of making iron ant
steel. but II the sponsors OF the strik,
calculated that the wall of consumer
of mill and factory products. as well al
the mills themselves. would be effec
tive in bringing coal operators Il
terms, they have figured rather badly
A demand for steel and iron which wa!
hardly guessed when the strike wal
prepared for has caused premiums I,
be bid for products for early delivery
and through these prices above tn,
regular market figures steel and irol
makers have been able to meet tho ex
ira cost of coal brought through new
channels over long distances and still
make a profit. II the steel market has
remained In the rather indifferen
state of February. forcing competitio,
to be sharp between manufacturers a
relatively low prices. the coal strik
might have a different aspect
The lack of an active export and i'm
port trade has played it's part 81
thwarting coal strike plans, and tn
low state of international business con
tinues as deterrent to capacity manu-
featuring in many lines. The figures o
our overseas business in April wer
rather dismal. showing the smallest ex
ports for any month of 1922. The Gcno;
conference brought no assistance to tn
foreign exchange markets. and II ha
very little economic Influence of an.
other sort. The export trade nigh
seem quite discouraging II IT were no
for several significant factors. One
that our steel machinery and automo
biles are competing successfully witt
foreign producers abroad and anothe
is that cotton exports are looking UP.
wArERToMN CHEESE SALES.
wATERrowN, N. Y. May 21.--Chees