Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-03-27
GOSSIP OF
THE STREET

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Fundamentally the trend Of the stock
market has not changed. The shake
out OF last week Is regarded as put |,
healthy reaction In a bull market ano
the next few days should demonstrate
in a striking manner whether or hot
the reactions that have taken place have
run their course or whether further
irresularity vii be displayed through {,
out the list before general upward
movement again takes place.
The declines last week are the hrst OF
any sizable proportion that have taken
place since the upward movement Degan1 I
several months ago. 1t is recoenihee
fact that such issues rs the sugars mao
been over.bulled and over bought on
the basis Of the actual facts surrounu, ,
ing the trade. 1t is felt, however, tns'
with the declines recorded in this group;
as n whole. the course Of prices will
again resume its upward tendency
though in possibly not quite as agrees
sive n manner as was In evidence q
fortnight ago.
New Bond Issues
During the coming week 1t Is ex-
pected there will be several new Of
ferings of securities. but in the main
these will not call for the creation OF
large amounts Of new money, most o.
them being for refunding purposes. III
is known that there are several foreign
financial transactions pending which
when concluded probably Will be Oh.
fered BY American bankers, but Juss
now the matters of this kind are being
held in allegiance until final details can
be whipped in such shape as to permit
their proper presentation 10 the pun
Foreign Government securities re-
Gently have been more popular, moving
M moderately from the previously pre- ,
vailing levels. The strength displayed
in foreign exchange naturally mas oeeh
q factor Of Importance in this connec. |.
tion. While sterling bills eased on
moderately last week, there SUBSEQUENT.
" was marked recovery, which nad z
stimulating influence over the unted
Kingdom 51as. with resultant Forward
movement in them carrying the quota
ton to nearly the high marx OF tne
year.
More Government Financing
Although the United States Govern
ment only recently put out a substan :
tial amount of short notes, 1t Is
fe't that this will again be followed
with another Offering Of sizable pro
portions from the same source within
the next two or three weeks. The Gov
ernment has a large amount OF new
financing to accomplish over period
Of the next year and, according to re-
ports in the Street. 1t is proposed tC
accomplish this through the issuance Of
short term securities. although 1t Is moi
unlikely that each succeeding issue WY
carry a longer maturity than the one
Immediately preceding. nm
The Government has over S5,OVO,
OOO, 900 of maturities within the mex,
year and a half, and 1t is stated thal
arrangements to meet these obligation;
have been pretty definitely determined
by Secretary Of the Treacury Mellon
and his associates.
A British Explanation
In a dispatch to Department OF Com.
nerce from Commercial Attache Tower
at London, are given what British au.
thorities regard as the six principa
reasons for the rise in sterling aftel
January ]. as follows:
First. Over .discounting OF expected
requirements for dollars in London t,
nav for customary heavy imports Of raw
materials and foodstuffs in the autumn
which failed to materialize.
Second. Fact that sterling was out o.
line with its purchasing power parity
caused by rise Of prices in United States
and fall in Great Britain.
Third. Decline of United states ex'
ports to Great Britain without CORE
| spending shrinkage in our imports from
Great Britain.
Fourth. Opinion that provision fo
payment of interest on war debts ha
already been made.
Fifth. American purchase OF securitie
from British holders, purchase OF British
Treasury Bills for insurance companies
and granting Of dollar loans, consider
able parts of the proceeds Of whicl
eventually found their way into sterling
! Sixth. Increased confidence in eco
nomic stability and commercial an
financial outlook for United Kingdom
and improvement of trade which vii
result from prospective co-operatio1
in rehabilitation on the Continent.
The Copper Situation
Developments have shown that tn
copper properties are making goo
strides toward resuming operations a
normal II it should be found advisabl
to do so. The Inspiration Consoli
dated Copper Company Is now operatin
ten Of its twenty units. which mean
about 80 per cent, and the output 70
March is estimated at Z. 1000 900 pounds
Sentiment in the trade is by no mean
pessimistic. Leaders look upon tn
smaller demand as only natural after
spurt, because the consumers are nc
yet buying freely for their future re