The Washington herald., 1922-05-28
FIN A N CIAL
SPECULATIVE LIST
ADVANCE IN ACTIVE
STOCK EXCHANGE
Mex. Pete, Studebaker,
And Retail Stores Gain.
Rest of List Firm.

NEW YORK. May 27.-In spite Of
the fact that many traders absent
ed themselves from the financial
district today the market exhibited
considerable activity during the
first hour. Much of the trading. |
however. was in the more specula-
tive stocks such as Mexican Petro- |
leum. Studebaker and Retail stores
and these issues advanced sharply
after the opening. The rest of the
list was In the main quietly hrm.
ctivity slackened during the sec
ond hour. but another burst of buy
ing occurred just before the close
which carried a number of stocks
to new high levels. The bond mar
was steady.
Vague Reports Effective.
There has seldom been a time
when vague reports of possible de-
veiopment exerted such an influence
of trading in the securities mar
kets. as they have done in the past
week, including dealings in many
securities in yesterdays session.
Following the action taken by the
Interstate Commerce Commission
reducing freight rates many reports
were current about consultations
and mergers of various railroad
lines in new systems. So far as
could be learned those who were
most active in accommodating many
or the stocks which made advances
TO around four or five points yester-
day had only a vague idea about pos
siole developments that might occur.
but the ease with which the market
position of those securities was ad-
vanced convinced many that there was
good basis for the upward move
ment- The advances in Reading PRE-
ferred shares. which was a feature of
yesterdays trading, seemed to be
based on an idea that rights Of those
two classes of stocks to share in the
coal land distribution will be main
tained by the Supreme Court. but 1t
was suggested that a sounder basis
might have been furnished by knowl-
edge OF agreement possibly between
the preferred stockholders and those
in charge of Reading segregation
plans.
Call Money.
There was another period of ten
sion in the call money market yes
terday which was the subject Of
good deal OF discussion in stock mar
ket circles. the rate advancing from
u
cent at the close. Those making a
speciality of banking accommodation.
however. said that the market was
governed by the same factors that
have always entered into the situation
when rates for call money declined to
such a level as to force out-of town
money away from the Street. similar
TO the movement that occurred last
week. The influence OF low rates be-
came more pronounced when renew
ais are fixed at return that disap-
points lenders. Yesterday morning
the renewal rate was fixed at 3 II per
cent reducing the interest return on
the billion dollars or more loaned on
the Street on call. whereas IL the re-
naval rate had been fixed at four per
cent and later loans been made at
three per cent only about $40. 900, 900
would have carried the low return
The fact that Thursday next is one
Of the large disbursement days of the
year and that some large institutions
prepare in advance for those disburse-
ments was also factor in causing
yesterdays tension.
Renewed interest was directed to the
Teapot Dome Oil fields OF Wyoming
Nth the sharp advance in Fensland
Oil which took place on Friday. the
issue selling at the highest quota
tiOu on record. II will be recalled
that this company recently brought in
a $500 barrel well Immediately ad-
jacent TO the government reserve
properties which are popularity termed
as the Teapot Dome" 1t was said
in financial circles that the buying of
Fensland cmanented from Pacific
Coast points and this was indicated
as interpreting that the Standard Oil
interests are desirious Of obtaining
control of the Fensland property. The
Fensland Oil Company owns a tract of
$50 acres. which adjoins the govern
ment reserve properties. and the
bringing in OF this important well
proves the predictions that the Tea
pot Dome contains an extensive oil
reserve. The renewed interest in the
stock Of the Fensland Company came
as somewhat of a surprise and the
character of buying was regarded as
Of the greatest significance not only
in financial circles but in the oil
trade.