The New York herald., 1922-01-11
FINANCIAL NEWS
AND COMMENT
Bonds Gain In Heavy Turnover
-yictorys at New Highs
Stocks Rally.

esting OF yesterdays financial markets.
the effect Of declining rates for money
being seen clearly in heavy turnover
OF funded issues on the New York Stock
Exchange and in rising scale OF prices.
The Victory rotes reached upward TO
new high poirts on the movement and
decided strength marked all OF the Lib
erty group. the size and second &Ne
rising around half point each. That
the money situation should have a de-
ciced reflection in foreign Government
and municipal bonds was inherent In the
fact that they have been returning a
substantially larger yield than have cor
porstion lssuss. turnover OF SCI 7.oco.-
600 OF bonds on the board RANKED the
session among the iivciiest Of the last
six naonths
In stocks there was desuisory selling
from professional sources untii the last
hour OF ousiness. AS prices had failed
TO receive any stimulus on Monday from
per cent call money. 1t was reasonable
for partisane Of the fail Of values to
believe that further success would attend
their sales. During the morning that
theory worked all right and there was a
weak tone amcng petroleum and certa, In
steel shares. But when short covering
was undertaken later the market was
found to be rather bare Of offerings. with
the result that sizeabie rallies occurred
In many parts OF the list The Erie
Issues responded easily 10 buying orders
and a rally OF more than 2 points sn
Chicago and Northwestern again seemed
to show that It's recent weakness had
been caused chiefly by short selling
The market was highly irregular at its
close. with It's undertone arm
The rapidity with which money rates
nave retreated since January 1 has
aroused expectations tina. the local Re-
serve Bank will lower Its redisoount rn,a
soon. Collateral loans for nxed ma
turtles secured by railroad and indus
trial securities. were established yester-
Gay on AZ pcr cent basis, which Ia
the came as the rediscount rate. The
lowering Of the Dallas Reserve Banks
rate from 5ia to per cent. was a
sign Of improving credit conditions I'm a
locality Of the South where the adverse
agricultural situation had long slowed
down the liquidation of old loans. From
many quarters news and comment ind,-
cate the probability that money srp-
PILES will be much Increased In the merit
few weeks and the reserve system seem,
likely 70 report heavy contraction Of
outstanding currency IN It's next weekly
statement
II was not altogether clear whether
the United States stee, Corporation.
report Of 1852 tons increase Of book.
ings In December indicated a sstisfac-
tory situation OF business In that month
Substantial orders for rails were r--
ceived from the railroads and u they
were as large as reported the 9ac. that
there was gain In forward contracts
suggests that deliveries were on a fairly
good scale, larger than might have been
expected In month when inveotorv
taking tended TO slow down mill opcrs.
tions. The carriers are feeling out the
market for moderately large tonnages
OF rails and many thousands OF cars. and
II they should be placed in any size this
month there shouid be good showing
In bookings 20 BIS reported on Feb
ruary 10.
Cotton and wheat prices wore weaIx.
Wheat futures declined az cents a
bushei and certain cotton options went
upward 70 SO points.