The New York herald., 1922-04-24
FINANCIAL NEWS
/, AND COMMENT
Public Shows Discriminating
Caution i'm Heavy Pur-
chases of Stocks.
BUSINESS TIDE WATCHED
Prices Of Shares Hold Up Be-
cause of Evidences of Trade
Improvement.
BUSINESS TIDE WATCHED

llet shows ratl Ter clearly that despite
signs of overen lhusiastic speculation at
times the public has been moved to take
catsious and. conservative attitude
toward securities! 4 turnover of 1900. .ooC
shares in a single session on the New
York Stock Exchange does not indicate
as intensive and. excited a speculation
as did days sales of 9oo. 900 shares five
years ago yThei number OF separate
stocks is inucr larger. interest in stocks
is much more cvjdely distributed than
ever before and, the country's money
supplies are in fthe most liquid state
since the middle sof the war period.
The publics caution was demonstrated
last week Measured by standards set
in the wild marke IS of 1916 and 1913. the
aftermath OF the 100000 share day on
Monday should have been several ses-
sions of rapidly fiuctuating industrial
share quotations. punctuated by series
OF sharp breaks as liuuidation by ner-
I vous traders was put through with
slight respect for prices.
\ But the maxket acted in quite the con-
| trary fashion. The furry of Monday
I carried no further than that day and
! throughout the remainder of the week
| the feature was a progressive falling
off in the volume of business, whils
| prices as whole went forward in grad
ual and orderly fashion. Speculative
| frenzy was entirely lacking; the market
| gave few evide nces of hasty unloading.
! The quietly strong tone and the slacken-
| ing of business seemed to denote that
participants in the market were coolly
taking soundings OF the speculative out
I look, feeling their way nd content to
keep the shares they had bought at
lower prices.
This impression OF the market can be
| Justified by actual facts Of business
which. in the larger aspects, control
price movements. The rather sharp re-
versal of Monday was salutary: It
caused both professional spectators and
| the public buyers to take stock of what
had been going on in industry and
transportation and OF what promises
were held out for the future. A sober
examination of principal factors showed
nothing alarming. but brought forward
one or two matters for examination.
The coal strike entering its fourth week
& 70 ha
I at least provocative of wonder as t.
where certain departments of industry
would drift II II continued four weeks
longer. The steel trade appeared to be
affected in slight degree only; yet fur
naces were found to be closing in the
Pittsburgh district because of a shrink
age OF coal and coke. supplies. Iron
prices were discovered to be 81 to S. a
ton higher than the week before because
consumers. fearing a fall OF production,
were bidding for meaal
Followers OF stocks have been trained
in recent years not to sell on strike
news. but II they were not moved TO
sell last week it looked as though they
were inclined to buy less than before.
The edging of United States Steel I'D TO
par, height not touched before in two
years, failed to bring in a flow of buy
ing orders. The market pondered over
the strike situation. 1t could not make
head or tail of events In the Genoa con-
ference. and 1t was not inclined to take
a position. based on hopes of construc-
tive developments or fears of a hope
less disagreement in the meeting.
The European situation was put aside
for review after the relations OF Ger
many and Russia had been defined
clearly. after 1t was plain that the pro-
gram OF fiscal reorganization OF many
countries had either been prepared or
postponed until happier day. Stocks
held UP because the domestic Industrial
news showed that the March demand
for steel was being maintained, because
investors were finding merit in many rail-
road shares, and because rates for cer-
ta.., kinds of bank accommodations were
lower than they had been in five or six
years.
Lower Money Helps Bond Sales.
Tho low money quotations had the
/ quite natural effect OF stimulating the
bond business. Whatever occurs In the
remaining months in stocks this year is
certain to go down in financial history
az a remarkable period OF bond distribu-
tio. Close TO .loo,cco 600 new securities
came upon the market last week, and in
most cases the demand was far In ex-
cess OF the offerings. Foreign and do.
mes'.c. railroad and Industrial, and pub
lie utility bonds met with recep-
ton which disclosed loosened purse
strings and. perhaps. a speculative ex-
uberance which will prove not altogether
satisfactory in the end.
a great absorption OF bonds like that
Of tho last two months prevents the dis
eliminating selection by investors and
underwriters which Is exercised in nor
NAL times There lies in IL danger that
unworthy offerings will be made and
that some dealers will take more on
credit than their resources warrant. An
interval OF digestion would in the opinion
Of conservative bankers not be amiss in
the near future, for while money rates