The New York herald., 1922-09-22
FINANCIAL NEWS
AND COMMENT
Call Moneys Advance to 6 Per
Cent. Depresses Stocks
Heavy Drain on Funds.

| A very material Tightening OF the
depressing effect on the financial mar
kets and to a large extent the general
trend in all Of them was toward lower
levels.
Several important influences were at
work which combined placed heavy
drain on the supply of funds available
for speculative operations and for other
purposes. Banks were compelled to call
| loans in large way and the rate for
call finds on the floor Of the New York
Stock Exchange advanced to per cent.
duplicating the high mark of the year.
Only once before this year--last Febru-
ary-have call rates been as high as
6 per cent.
That the stringent condition in the
money market Is merely temporary is
the general belief. Some tremendous
Government operations have been put
through in the last few DAYS. while at
the same time there has been no little
drain on New York from the interior.
although the outpouring cf money from
this center has not been as great as In
other years. The restoration of coal
basis has warranted an expansion in in
dustry which also has called for con-
siderable money.
On top of these factors there was
he Ayoi hav rlu,.
because of the great scurry to release
imported goods from Government ware
houses before the higher tariff rates be-
came effective to-day. Extreme activity
marked operations at the Custom House,
where hundreds OF importers we're
making frantic efforts to get their ship
ments in under the older and lower
rates. All this required great deal of
money.
There Is no doubt that the preponder-
ance of the selling of securities yestcr-
day was for professional account. All
signs pointed in that direction, and with
virtual assurance that the tight conz
dition of the money market was only
temporary there was little reason for
real liquidation. Stocks declined sharply.
but in an orderly fashion, and at no
time was there sign of panicky SEN
timent among holders of stocks and
bonds. 1t was the specialties in which
speculation has been inordinately
heavy that the greatest losses occurred,
indicating a desire on the part Of those
behind the manipulative movements to
get stocks at lower levels.
Foreign exchanges moved toward
lower levels in the late trading. Heavy
recent offerings of grain bills are re-
sponsible for the rather erratic trend
Of continental rates. These offerings
have been rather spasmodc. and from
time u time the pressure on them has
been lifted momentarily permitting a
rally in rates. Sterling quotations were
shaded only slightly, but francs and
lire were heavy.
In this connection the statements OF
the French and German banks for the
week present some interesting compari-
sons The German bank rate has been
increased to per cent. Mark cii'cula-
ton again expanded widely, reaching
new high record Of 2u597s stc, ,0Oi
marks, an increase i'm the last week OF
nearly 20 600 900. 900 marks. Frencn cur
rency. on the other hand. declined from
SO, ,6o7, 100 900 francs to 1856, ,S00,UO francs.
small cut. it is true. but still step
in the proper direction.
Continued talk of war caused a sharp
rally In grain prices in the late tr"d-
ing. During the morning hours the
price OF grain options had been allowed
to recede through neglect, with a ma
iority OF the traders holding back pend
ing new developments. Net changes.
however, We're small.
In the bond market there was little
feature. Certain Liberty issues moved
into higher ground In reflection Of the
action Of the Senate in uphoidin2 the
bonus veto, but that development for
the most part had been discounted long
since and played little part in yoster-
days markets.