The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-06-03

Important development In tho
domestic. economic and financial
situation this week was announced
prior 70 the opening OF the stock
market on Monday. the proclama-
tinn ~ the railroad labor board >
decision IN the first Of the wuge
henrines that have been before
that body for attention. Neither
the decision Of tile Interstate
Commerce Commission affecting
freight rates. q TINT Of the labor
board In the matter of wages
dcviuted 20 any extent from the
unofficial estimates that had been
held IN the financial district. and
therefore, the effect upon railroad
stocs "a negligible. Investors IN
railroad stocks have been more
concerned with the weekly and
monthly records OF EAR ioadings.
the monthly reports OF rross and
net earnings, aud the regulnr
economics that ran be put into er-
feet by the railroad Hines In order
10 offset tho loss In traffic caused
hy the temporary closing OF the
coal mines. Judged from these
standpolnis. the present value of
railroad stocks II regarded in con
sentative Quarters az heing con-
sldernbiy more than current quo
tAtlons- hence tho trend toward
higher prices and the weekly c.
Establishment OF new record ton
levels for the year In railroad
stocks and bonds,
The action Of the stock market.
which features one group Of
stocks on one day and "A different
group on the next. IL highly sur-
gestive Of professional mnnlpula-
ton. on the whole the tendency
Il unmistakably toward higher
prices, though 81 ie not expected
that a bull market can last very
far into the midsummer scsrion.
The market Is not entirely under
the dominance OF the hull ciiques.
for there IL rtiii q large element
who ARE working directly for a re-
action. and they occasionally have
their inningr The general public
has taken a hand in the conduct
OF affairs In the stock market. hut
shows q tendency to take profits
wherever the opportunity Is pre-
sented.
Money
The plling ~ OF surplus money
and credit supplies and the consc-
quent easing ~ loaning rates. IL a
seasonal development. aided nnd
abctted by the extra credit ma
chincry supplied by the federal re-
serve system. l. T.. OF anurse, "a
be regretted that the bnsinesa and
industrial enterprises Of the coun,
try are unable 10 find employment
for all the funds that might b,
found available for the purpose.
hut II will be logical "a look Tor az
Improvement In this respect Ia III,
fan.
In the meantime. an upward
movement Ia commodity prices Ia,
set In. This month n price Indexes
are about three points higher taaf
those OF last month and about fiv.
or SiN points higher than the cor,
responding figure u year ago. w,
have, therefore. an sub.
sequcnt losses In prices since IN.
middle OF June, 1891, and regaInce
some 81 the ground that had bcei
lost In the price reduction. ~
consequence. Il may BE- eenornll,
stated that prices today are I6l
per cent above their ayerage lcv,,
OF 1914. should tins state .
things continue, the result woui,
be to bring about a general In
crease IN the OF mono
required Tor doing business aRa.r
which In Itself would mntarinlll
aid 10 the dcmnnd for bank fund.
From this standpoint. therefor
J another factor may he seen work
" linz Nlllf.n the Uaa..aa.aa alas.ua4.... A.. a.
, direction of higher rites.
|, investments
New issues Of foreign govern
men, bonds which were promis.
! for the early part OF this wee
, failed TO raaterlnilxe, due 10 an
! holiday Interruption and the evI
dent desire to await development
: IN the German PREPARATION aud Ioa
! situation.
a The bankers' loan committee ha
i submitted terms that really rcnll
! mean "A lesnl recetvership for Oel
many. They demand the ccssntlu
4 OF h weekly increases IN printif
press currency. the balancing 4,
4 the German budget and other I
4 nnncinl reforms calculated I
speed the economic reconatructio
OF The German empire, but upo
q conditions that Will furnish a ra'
test Of tho sincerity OF the Germn
f, leaders.
Domestic corporate maturiti,
? during the month OF June al
comparatively small. and will r,
, quire little new financing. In mo
4 Cases corporations have nlread
provided funds for paying obiigl
& dnns due next month. The tot
g OF railroad, public utility ana n
q duhtrial bonds maturing In June
sbh.ps2,3S intending ti3,T0a, ~
4 IN railroad bonds. 5000. 600 publ
utility and t2e.727.930 Industrial
~ Corporations which have 10 scs
FUNDS 20 replace maturitlea dl
0 next month have the good fortuI
OF an easy money market,
= striking contrast with the conditls
a year ago Many OF the small
q maturities falling dua In June W
be paid off BY surplus funds
II issuing companies. while 9th
4 small Issues viii be taken care
hy short-term hank loans. A
10 though the bond market has be,
N unusually dull tho hast two weel
D all new issuce have been prompt
distributed and the lnvnstme
market a. gradually getting IN
shape where dealers welcome ne
isauor.
A.. Cotton
Ono OF the important features
a: the financial situation ~ d
steadily advancing quotations (
=. raw cotton. STIMULATED hy the d
. maHd Tor az ldnrlo ffom lornll
ana domestic sources Crop co