The New York herald., 1922-02-03
FINANCIAL NEWS
AND COMMENT
Stock Markets Advance Most
Extensive of Year-Bonds
Also More Active.

The signs OF an expanding interest
seen In Wednesdays stock market.
broadened yesterday into general buy
ing movement among the Industrial is
sues and the net result was the most
extensive advance of prices seen this
year. Much of the upturn. which ran
from point to more than points was
at the expense of the short interest, but
behind the covering operations were
forces that come from change in senti-
ment. The Street was feeling better
concerning the business outlook than it
did last week, and the fruit of the Wash
| ington conference on -armaments was
appreciated by all the markets. 1t re-
mains to be seen, of course. whether or
not there was sufficient substance be-
hind the rally to denote a permanent
| Improvement OF stocks. There is still
plenty of depressing information to come
In statements by manufacturing COM
paDies on their results in 1921. A price
OF SCH for Steel common yesterday in
dicated, however. that the United States
Steel Corporations unsatisfactory docu-
ment. issued a few days ago. had not
dampened speculative ardor. That quo
tation was within q small fraction of
Steers highest price last year.
Dealings in bonds as well as in stocks
were more active than they were on
Wednesday and broader list of
issues was handled. New York trac-
tion bonds, notably marlborough Rapid
Transit 5s and Brooklyn Rapid Transit
rs, with Third Avenue adjustment 5s,
were decidedly strong and belief that
things were looking up in the transit
eral companies. But the interest in
stocks showed that more than a single
influence was impelling prices forward
The personally conducted favorites of
pools were very little more resilient than
were railroad equipment. petroleum, au-
tomobile, steel and sugar issues. and
although there was not much life to
the rails their tone was firm. Specula-
tion In railroad stocks undoubtedly has
been checked on both sides of the mar
ket by the cloudy character of De-
cenber earnings statements, as 1t has
been impossible i'm many cases to de-
termine exactly how the months operat-
ing income compared with the result in
December. 1920. The Southern Pacific,
for instance, noted in it's report that
II it had not been for the adjustment
of overlapping accounts, a product Of
the period of Government guarantee, De-
cember would have displayed net in
come OF $1.5S1.1O2 in contrast to the
reported deficit of s1,472,265 and the
full years net would have been nearly
$4.o00.o0o more than the statement
showed.
Sterling exchange got up to 4.3o for
sight drafts az rate / " cents higher
than its last quotation on Wednesday.
and retained most OF it's advantage de-
spite a rather abrupt decline of Italian
exchange following news that a change
of Ministry was to be made in Italy.
AS the bulge of sterling has amounted
to S1a cents to the pound in ten days,
partly because of speculative purchases,
the question of whether or not re-
action ought TO be expected may be
raised. The rise of the last fortnight
offers test of the reality Of factors
engaged in the movement. some of which
cannot yet be described in tangible
changes Of merchandise shipments and
in alterations of international financial
conditions. Cotton recovered nearly all
of sharp reaction of the morning and
grain prices were decidedly strong. The
latter moved upward more than 2 cents
bushel, helped by reports of small
supplies in certain foreign ceu of
distribution. The strength of sterling
presumably had reflection in both those
markets.
A gradual increase of offerings during
the day softened the call loan money
rate from VI per cent to per cent.
but time funds remained firm at AZ and
per cent.