The Washington times., 1922-10-15
Weekly Financial Review
BY HENRY CLEWs,
OF Henry Clews b o., New York Bankers.

cate that the previous estimates
cation when the final figures for
made up. Coal increase has pro.
gressed 80 far d to afford IN most
parts Of the country q satisfactory
supply Of bituminous and small
sizes Of anthracite. *.
Money Rate Changcs. e.
Consequent upon the announce
ment of the Treasury's policy In re-
spect to the new loan, tendencies
toward q slightly higher level OF
money, which had already been noted.
assumed rather more distinct form.
and the charge for current funds
seems likely to continue at a point
above recent levels: The demand for
bank accommodation in the interior
Of the country is decidedly larger,
and will continue to be so during the
autumn with end-of.the-year neces-
sites to follow. II is probable that
no very extensive changes will
ensue. however. an the strength Of
the banking situation Is, IL anything,
greater than heretofore. The gold
reserve Of the Federal reserve sys.
TENS, IN at a record point near
S3,100, 900 900, while commercial bill
holdings have increased above $780,.
| 100000. The reserve ratio Is still
high. amounting to 75.7 per cent.
Although increases in current de-
mand for money at banks in the in
terror have been instrumental In
raising the total amount Of CONNER
cial loans for the country as a whole,
the total volume Of such loans ID
still much below the level Of the
banks capacity.
Effect Of Standard Dividends.
The uplift this week in the Stand.
ard Oils and in the shares Of other
companies whose surpluses are suf
ficiently large to suggest the posi-
bility Of huge capital distribution
has had bracing effect on the gen
eral list. which was beginning to
display a rather weak backbone, and
this has enabled many people who
were overextended to tighten their
loads. Selling by the public hai
been quite a feature during the
week. with the result that the posi-
ton Of the market has been consider
ably improved. As against this
however, there is another aspect tc
the situation which Is not so whole
some, and that Is that 1t Is raising
false hopes regarding stock. divi
dends In a number Of cases and
creating an artificial sentiment re
garding some values which can only
| end In disappointment.
With respect to the 400 per cen
stock dividend declared by the Stand
ard OIL Company Of New Jersey Cfor
merly the parent concern) ther,
would appear to be substantial rea
son why the management should
have finally concluded to distribute
to its shareholders a large portion
or It's enormous surplus In the shape
capital stock, although the con
tinuance OF dividends at the old rate
leaves much to be desired consider
ing the meager income returns baset
on current quotations. Still, on,
can look to the future In the expec
tation that the cash dividend dis
bursements will eventually be in
creased.
Prospects Of Stocks.
Although the rebound since tn,
first OF the year has been liberal
yet a fairly large number of divi
dend paying stocks are still selling
at reasonable prices based on theiI
enormous returns, and IL bushes,
expands to the extent now predict
ed there will be room for further
enhancement later. but with the sea
sonal demand for large sums OF
money for crop moving purpose,
now setting In Il would seem thai
the present Is hardly a propitiou,
time for an extended advance tina,
Will hold, as applied to the genera