The New York herald., 1922-07-13
FINANCIAL NEWS
AND COMMENT
Stocks Rise, Confidence More
Pronounced as Rail Strikes
End Seems Near.

As the railroad strike situation seemed
yesterday to be approaching rapidly to
position where the two sides would start
negotiations on settlement terms, the
markets breathed easier and Speculation
was renewed in stocks on a fairly broad
scale. In fact the general strength of
tn share list was more pronounced than
In any previous day since the strike
began the stock market displayed more
confidnce In the future than at any time
since the possibility of German fiscal
collapse was sensed in the fall of mark
exchange late in June.
In several respects the markets dis
closed the growing impression that sew
erai factors which appeared to have
only disturbing contents week ago had
either disappeared or become lightened.
European exchanges again were firm,
francs, for instance. striding above $50
cents, compared with 7s5 cents as re-
Gently as last Monday, while marks
were quoted at PAY cents and better.
against this weeks minimum-and the
minimum of history-of .1sN cents
Additional improvement OF French and
Belgian Government bonds practically
eliminated the reactions suffered early
in The week. when the disturbance of the
exchange had counterpart in funded
security issues
Most of the days estimates Of the
outlook had to- be based on inferences
drawn from meager railroad news, CEN
tering in Chicago, and from dispatches
dealing rather incompletely with Ger
man reparations Clearly, the rail labor
leaders directly involved in the shop
mems strike and, to. lesser degree.
those others who are believed to be on
the fence found something to think
about in the Governments announced
position about the mails ana necessary
interstate commerce movements
But more significant than President
Hardlng's statement of the public rights
and means which would be used to en-
lorce them II necessary was the effort of
the Railrod Labor Board to shape a plan
OF settlement agreeable to employees
and employers. The boards province In
disputes Is to act as mediator, for its
suggestions about wages are not man.
datory, and the markets plainly hoped
yesterday that something would come
quickly. from the program presented to
the railroad managers for examination
A number Of rail shares gained
considerable ground for example. the 2
to 3A point upturns in Big -Four issues
hinged partlyon the New York Central's
plan to absorb more of the stock than
the controlling interest now held. There
also were good gains in Chesapeake and
| Ohio, Baltimore and Ohio, Reading,
Southern Pacific and Others But specu-
lation was more active among such shares
as Studebacker. Allis Chalmers, General
Electric, and industrial specialties, all in
| groups which are known to be In a
much better position than six months
or year ago in respect to earnings. An
indication Of steel trade betterment was
shown in the Lackawanna Steel Com.
panys report for the second quarter
which. while displaying loss. recorded
nevertheless. a deficit after all charges
and wf1teoffs less than one-fifth the de-
ficit in the same quarter last year.
Financial attention was directed to.
ward domestic matters primarily. The
Preparations Commissions plan to credit
certain acculations of interest and pro-
ceeds of goods sales against the July
payment reducing the gold mark re-
quirements by 36 per cent, helped senti-
ment toward the exchanges, but seemed
not to do anything to settle the German
problem.
The ease of money was shown by thu
decline of the call rate from 81 to az
per cent Time loan quotations were
easier than on Tuesday.