The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-06-06
FINANCIAL NEWS
AND COMMENT
L. s. Steel Stock at New High
of Over 103-Sterling Up
, Cents to $50 3-8.

The stock market had Yesterday 10
contend with several events which
checked speculative endeavor for the
rise and encouraged operations for the
fall of values. For the most part, the
days influences had greater applica-
tion to sentiment than to market plans,
based on true economic developments,
and in the afternoon United States
Steers advance to new high level
above 1913 tended to restore a, degree of
confidence in respect to the industrial
shares. The earlier decline however.
was too extensive to be overcome in the
last hours rally. and. in the final ar
ray OF quotations. many declines OF
large fractions to more than two point,
were recorded. A further upturn Of
more than two cents in sterling, the
rate reaching 4.50as for the first time
since July 8. 1919 was impressive. but
would have been more so had the move
ment occurred when the London markets
were officially open and IL there had not
been suspicion that spectators were
seeking to make the most CT the altered
sterling outlook. A holiday ruled in
London. The return flow OF money 10
New York banks after last weeks spe-
cial demands was reflected in the mark
ing down OF the call loan rate from All
per cent. to ga per cent. before the bor-
rowing period ended.
The revelations of expected bankers
and syndicate profits in the latest steel
merger evidently received wide attention
in over Sunday reading of the newspa-
pers and the result was pressure against
Republic and Midvale steel shares i'm
mediately after the opening. Also deal
ings in shares of the proposed CONSOLE
dated steel company on when issued
basis in the curb brought decline. But
interest was diverted from last weeks
happenings before the Lockwood COM
mittee to the probability that the Beth
m-Lackawanna steel transaction
was in for a thorough ovcrhauling by
the Federal Trade Commission. Ac-
tually. all that the Washington dis
patches stated was that the Commission
had appointed day to begin hearings
would or would not controvert u section
of the Clayton, law, but, even in incon-
elusive state. the news supplied ammuni-
ton to the short sellers. The entire in
dustria! merger program certainly has
run afoul of unexpected obstacles. 1t is
reasonable to believe, however, that when
the ground work for several of them has
been laid, II will be laid firmly with
more consideration for economic pur-
poses than the intent of large profits in
the stock market.
A periodic estimate of brokers' loans
put the total at $500, 900, 900, which, il
correct, is three times the volume Of
loans of the sort at the bottom Of last
years dsflation. The aggregate, while
imposing, does not carry the suggestion
OF a top-heavy position such as was
entailed in similar figure in October,
1913, when spectators in securities
were borrowing in competition with in
dustry and the elimination of extrava-
! CANT uses of credit in many directions
was rapidly approaching. Present bank
! ing figures denote that loan initiation
is not general On the contrary bor-
rowings from reserve banks are still de-
Ginning.
The possibility of substantial new
issue of Treasury Notes or Certificates
before June Is was discussed in banking
circles. In addition to the usual large
Government transactions at mid month,
incident to interest payments and the re-
tirement Of a nearly $3.50. 900. 900 in GER
tificates, the Treasury IS to pay off the
outstanding Victory 3% per cent. notes,
amounting to more than S250.0OO.OOO A
new issue at 3% per cent would in eff
feet be for conversion of part Of the
| Victory paper.