The Washington herald., 1922-02-17
ERRATIC TREND
RULES DESPITE
NUMEROUS GAINS
Special Industrial Shares
Advance From One
To Three Points.
GOOD RAILS HIGHER
Mystifying Advance in Steel
Fails TO Demonstrate Mar
ket's Gaining Ability.
GOOD RAILS HIGHER

NEW YORK, Feb. Is. Despite
the numerous gains Of Ito > points
in special Industrial issues. and
generally higher price level for the
better grade OF railroad shares. the
stock market. taken as a unit dis
played irregularity today. There
was another mystifying advance in
United states steel common early
in the afternoon. but N this move
ment was intended as something TO
demonstrate the markets ability
to continue going forward IL failed
OF Its purpose. Only a few exam
pies OF weakness developed. but the
majority of standard industrial
issues lowered around the closing
level of wednesday. Call money
renewed at per cent. and new
ing the day.
Railroad stocks.
The railroad stocks began 20
move ahead by themselves in the
second hour. while industrials were
displaying hesitancy. Lehigh VAL
ley and Reading attracted some at
tention as leaders OF the dividend =
paying stocks and, inasmuch as
each is a coal road, there was a
disposition among market critics 10
ascribe their movement 20 special
causes. The FIRST explanation fell
| rather nat 1t was to the effect
that Reading and Lehigh Valley,
as coalers, were rejecting the
/ brighter outlook for an amicable
settlement of the wage controversy.
/ But Lehigh and Reading are an
| pute in question affects the btu
mInous operators. Tho second ex-
PLANTATION offered was that each road
has pending a segregation Of Its
coal properties. and that the stocks
have not fully measured up TO the
/ Importance OF these Developments.
That was a more reasonable expla-
nation for the prominence Of these
| stocks in today's trading. but it
was not suggested until interest
I had been centered on the move
ment
Call Funds Abundant.
Despite the fact that the Treas
ury was withdrawing sec 900 600
! from the banks in the New York
Federal Reserve district today. the
supply Of call money offered on the
( Stock Exchange continued TO grow.
] AS a result there was a further
reduction in rates, with renewals
down to 4 per cent for the first
/ time since January Is. Rejecting
/ the ease in call money rates. deal
I ers have reduced the rate on loans
secured by bankers acceptances.
Yesterday this rate was lowered
/ from AZ to 4 per cent, and today
/ there were reports OF loans made
to brokers on this class OF collat-
eral at a figure as low as ; per
| cent. Up to date. however. the sn-
| creasing supply of demand funds
! has not been reflected in an actual
/ lowering Of rates on prime bank
ers' acceptances. Money brokers
believe that such a development
will depend on the duration OF the
current oversupply of funds.
Texas and Pacific Land Trust GER
| tificates bob UP in the stock mar
ket when the Street least expects
them. and as a rule the accumu-
Iation or distribution is completed
without an adequate explanation
being found.
Traders who have been interested
in Butterick Company stock were
not at all disturbed by the an
nouncement that the directors had
failed to act on a dividend At their
meeting late yesterday afternoon.
They had previously received as
surances from officials OF the COM
pany that no action would be taken
until the directors had the COM
pleted statement 1891 before
them. That statement is expected
early in March. Recent estimates
Of last years earnings have aroused
hope OF a 81 annual dividend rate
being established.