The New York herald., 1922-03-31
FINANCIAL NEWS
AND COMMENT
Speculation for Rise Spreads to
All Markets and Causes
General Advance.

Speculation for the rise OF prices
seemed to be contagious yesterday.
spreading from bonds and stocks into
grain and cotton and causing the most
substantial advance of a concerted order
in the last month. The influences be-
hind the upturn were not, however,
common to all markets. The broad buy
! ing that has marked dealings In bonds
for four months was In evidence.
furthered by maintenance Of low money
rates. and cheap credit also facilitated
the operations Of large caliber specula-
tors in stocks. But the 3ss cent a
bushel rise in May wheat. bulge which
carried its quotation q quarter of the
distance back along the road retraced
in the first half of March. was plainly
traders who had reckoned too lightly
last week on reports Of unfavorable
weather conditions in parts Of the
winter wheat belt. The undoing Of re-
cent speculations for the fall also con-
tributed to smart recoveries of corn and
oats. and bad weather news aided in the
rally of 81 to SO points in cotton futures.
The bond and stock markets were
again interesting subjects for study In
the light of last months earnings. It
seems reasonable to estimate now that
net income from operations in February
.n'll run close. when full returns are In.
Y per cent. on railway invested
e+ |. figure that would come
measurably near to the percentage NOM
mated in the transportation act of 1920
as reasonable. With February max
ing so comfortable showing 1t is nat
ural that better results should be looked
for when spring traffic gets under way.
Railway shares continued yesterday to
reflect that impression and helped bonds
! as well. but the advance slowed down
In the afternoon, when speculation
turned It's attention strongly to the in
dustriaI list. There was little to distn-
guish buying of steel. railroad equip
ment, automobile and rubber shares
from rapid purchases in the million
share days of fortnight ago, The
same effort to discount expected busi-
ness Improvement was seen In accumu-
lation Of an unusually broad list of
stocks, a process facilitated by opera
tions of confident pools with plenty OF
Az per cent time money at command.
The days news Of industrial application
was slight, vested chiefly in informa-
ton about stfffening steel prices and in
resumption OF operations in several mills
closed down during the winter. 1t would
not be surprising if something about In
creased competition by foreign products
in the American steel market were
heard soon, especially If quotations edge
forward.
Call money remained steady at Al
per cent. through the day and informa-
ton about the probable supplies of funds
In New York in the next few days was
lacking in the weekly reserve state
ments There were no unusual changes
in the consolidated report outside OF an
increase ofss5, 100000 in bill holdings.
caused by enlargement of rediscounts in
the main. Deposits increased $4,000
600 in consequence, and thoseT changes
had effect in depressing the ratio OF
cash to deposits and notes. which went
from 1874 per cent. to IT'S per cent. As
the New York bank was heavy re-
cipient of gold through credits In the
settlement fund a sizable increase OF
deposits was offset, and the ratio re-
mained at the preceding weeks figure
Of s6.7 per cent,