The New York herald., 1922-07-19
FINANCIAL NEWS
AND COMMENT
Reparations Readjustment
Plan and Reassuring Strike
News Strengthen Stocks.

The strong forward movement which
occurred yesterday in stocks under such
sound leadership as that supplied by the
rise OF more than 2 POINTS In United
States Steel common registered the mar
ket's opinion that private and Federal
efforts to settle the rail and coal strikes
would have positive results in the near
future. But there was another i'm
portant factor behind the movement that
was worthy OF discussion because of the
parallel effect it had upon the foreign
exchanges. This supplementary influ-
ence was the suggestion brought in
cabled news that France was coming
around to Englands opinion that Ger
man reparations should be reduced for
the good of all Europe and the stimula-
ton of trade.
! The Importance OF changed French
attitude, provided that early forecasts
are converted into fact is difficult to
measure at this time. Theoretically a
program which cut from 49,. 900, ,000. 900
to $4,000, 900. 900 gold marks Germany's
obligation under the peace treaty would
France. But If the reduction were to be
arranged so that the net debt of France
to England was reduced or eliminated, 1t
is plain that France could examine the
difficulties In collecting the original
amount in full have been amplified by
events surrounding payment Of the July
installment.
The foreign exchanges started off
strong yesterday and gained ground as
the day advanced. The upturn of about
y cents in sterling. more than a quar-
ter cent in francs. and brisk bulges In
Belgian francs, which carried the rate
well above the cent level. were evi-
dences Of more cheerful banking out
look.
| Strike developments In their applica-
ton to the markets were chiefly senti-
mental No news came during business
hours indicating that the end Of the
| shopmens strike was imminent, although
tatives Of the track workers union. rail-
road executives and members of the
Railroad Labor Board denoted efforts to
keep the strike from spreading.
| The Pennsylvania Railroads success
I, In arranging wage agreements with its
! shopmen was encouraging, although 1t
was realized that conditions on that road
were somewhat different from the gen.
eral problem. President Harding's mes
sage to Governors of States outlining
Federal plans for action in the strikes.
IL the need should arise, was not made
public and. therefore, the financial COM
munity remained In the dark in regard
| to the actual prospect for Government
assistance.
| The brisk upturn of industrial stocks
in early transactions showed pretty
clearly that neither speculators nor in
vestors were inclined to sell. Crucible
Steel demonstrated particularly an alb
sence Of offerings shooting upward 6 u
points and holding nearly all OF the
gain to the close. Nearly a score of
stocks. including two or three rails,
reached new high points for this year
several going to the best levels in their
history. American Locomotive. Baldwin
Locomotive, Pressed Steel Car and Rail-
way Steel Spring attracted considerable
attention because of the relation of the
companies to the railroad future.
The familiar product of fortnight OF
low call loan rates was seen in con-
traction of money supplies in New York,
causing demand funds to rise to per
cent. in the afternoon after renewals had
been made at 3 per cent. Low rates
had again driven interior bank balances
away from the metropolis. Stocks, how.
ever, ignored the advance. the best quo
tations for many of them being marked
up in the last half hour.