The New York herald., 1922-09-16
FINANCIAL NEWS
AND COMMENT
Lack of Interesting Features
as Stock Market Still Is
Strong and Active.

Notwithstanding It's activity and
strength. the stock market yesterday
was quite devoid Of interesting features
and with one or two EXCEPTIONS the
movements which occurred In individual
stocks were without particular signifi-
canoe. News developments during the
day. so far as they were apt to influ-
ence the course of security prices. were
few but there was the customary crop
of rumors concerning various issues
several of which bore fruit in the shape
or buyers.
The foreign exchange market. the
center of interest in the last week. was
just as lacking in interest as the stock
market. Germany's flat refusal to ac-
cede to the terms of the Belgian ulti-
matum In which demand was made for
the deposit of 100. .ooo0 900 gold marks as
security for notes for six months re-
parations payments was completely ig-
nored.
1t Is felt pretty generally that new
conference of the Allied Governmental
heads will be held In the near future as
result of the latest development In
the reparations situation. and that some
satisfactory solution of the present
knotty problem, either through a COM
promise acceptable to both Belgium and
Germany, or otherwise. will be found. 1
Conspicuous strength was shown in
tho bond market. with an especially
heavy demand for high grade railroad
issues, many of which went into new
high ground. The continued inquiry for
bonds at prices higher. in many cases.
than they have been In several years.
is difficult to reconcile with the theory
held In some quarters that rapid ex-
pansion Of business now in progress
and in prospect will prove drain on
surplus funds sufficient to warrant a
stiffer rate on loans which, in turn,
would In all likelihood be reflected in
gradual scaling down Of bond values
In the stock list. too. there was per-
sistent inquiry for good railroad Sc
curities. New York Central got UP to
par. Pennsylvania to 49A. while num-
ber of the others Of the same class ad-
vanced substantially. Buying Of the rails
at this time can scarcely be attributed
to any except those who desired to
recognize the extraordinarily promising
outlook for the carriers with definite
commitments, but who refrained from
taking the step until the outcome Of the
shopmen's strike was pretty definitely
indicated. .a
Certainly nothing more bright In the
Way OF prospects could be sought than
those in the railroad outlook at this
time. With all efforts bent to make
record movements OF coal, with a tre-
mendous grain crop virtually assured,
and with general business showing rapid
expansion, the coming months are al
most certain to be golden ones for the
roads which can handle their business.
| Not much has been said lately Of the
public utility situation. but the stock
market has gone on day by day reflect
ing the tremendous Improvement in that
industry. Numerous leading utility is
sues on the stock Exchange have more
than doubled in price in a comparatively
few months. Many of them were
granted higher rates during the post
war period OF inflated operating costs
and in some cases these rates are still
in effect. notwithstanding very sub
stantial reduction in expenditures. Nat
urally, this makes for a big increase In
the returns reported from month to
month. But even in cases where rates
have been cut below the peak level
economies have been introduced which
have resulted in very greatly improved
earnings.