The New York herald., 1922-01-26
FINANCIAL NEWS
AND COMMENT
Stock Market Highly Irregular
at ClOse--Bonds Dull
Exchanges Rally.


little besides the effort of professional
spectators TO depress several Industrial
issues coincident with successful at
tempts of pool operators to shove up
The price list at the end of the session
in consequence was highly irregular and
il was not apparent that any new
economic factors had been OF influence
in the days business. AS in the earlier
days of the week, stocks were largely
bereft of positive forces. derived from
developments in industry. There was
nothing out of the ordinary in this, as
January is always one of the dullest
months of the year for manufacturing.
and sluggishness this year has been in
creased by inability of producers in
many lines to determine the extent OF
consumption in domestic and foreign
markets in the first half of 1922. AL
though the turnover III stocks was sub
stantially larger than II was on Mon
Gay or Tuesday. the expansion was ac-
counted for mainly by the active bid
ding for specialties which have shown a
disposition to rise easily.
Comment from steel and iron regions
indicated more than it did last week
that the industry was waiting for de-
mand to awaken before seeking to de-
bring forth. Better business is ex-
pected late next month and in March,
and in the meantime it is probable that
producers will be satisfied If mill and
furnace operations hold up to the De-
cember basis. The United States Steel
Corporations plants range from 40 to
so per cent. of capacity. according to the
Iron Age, and competitors stand some
where between 25 and 40 per cent, which
is about the same as it was last month.
When there is so much idle capacity
active competition for business occurs
naturally, which accounts for the fact
that prices present an uneven 'front.' es-
pecially in pig iron and many lighter
steel products. So long as the industry
remains in a state of lethargy 1t is diff
ficult to see how merger plans can be
pushed to completion with real display
of public support. AS combinations,
to return to adequate cost reductions.
it is probable that the appraising OF
properties will be pushed, making ready
for the day when trade shall begin to
enlarge.
The bond market was colorless and ir-
regular, pressure again showing itself In
the French cities issues and among in
dustrial bonds. 1t has been plain for
considerable time that the retention of
the AZ per cent. rediscount rate by the
local Reserve bank has taken much Of
the December snap out of trading. and
the prospect now is that the market will
need to rcadjust itself to fresh con-
sideration of basic credit costs in this
center. No change occurred yesterday
in the rate, and in certain banking quar-
ters none Is looked for earlier than
March 1. The local money market, how
ever. was again fairly easy, the call
loan rate moving from per cent. to 4
per cent. and back to Az per cent. near
the end of the borrowing period. Funds
on time were available at AZ and 8
per cent. and mercantile bill rates were
steady at the same levels or a trifle
higher. although only small supplies of
them were reported in the market
French and German exchange rates
rallied. moving forward with Sterling
and apparently aided by a, demand
larger than the amount of available Of
ferings.s ~"