The Washington herald., 1922-05-23
EXCHANGE BREAKS
GROUND AS MONEY
RATES ADVANCE
Gains Predominate List
But Changes Show
Irregularity.

NEW YORK. May 22.-The start
Of trading on the Stock Exchange
today showed a heavy accumulation
OF buying orders Well over 5O0.-
900 shares were dealt in during the
first hour. and prices were buoyant,
a considerable number of high rec
ords being made. Motor equipments
and rails were all well taken. Con-
+, sistent strength continued during
most of the day, but during the
last. hour. the rate on call money
having risen from 3h per cent to
per cent. the market gave ground.
Toward the close advances predom-
mated. but changes exhibited much
irregularity. Bonds also showed a
better tone. with the issues rally
ing.
Buying Order. Flood Opening.
The advertising which the stock
market received as a result of the
sharp rise on Friday and Saturday
brought a large volume of buying
orders for execution at the opening
this morning. Many OF these orders
were from out of town. and the VOL
ume suggested that the public is
beginning again to take an interest
in the market. In view of the ac-
tivity in the railroad shares dur
ing the last two days of last week,
1t was perhaps natural that a ma
jority of the orders received by
commission houses this morning
should be in that group, and one of
the largest houses reported that so
per cent OF the market orders on
hand tbs morning were for the
railroad stocks. The natural result
of these factors was to push prices
up at the opening. and several is
sues made new highs for the year
during the first hour. The profess
sional element seized the oppor-
tunity to take some of the profits
accumulated since Friday. and be-
fore noon there was a good deal
of selling from this source. The
demand for stocks continued strong,
however, and every fractional re-
cession uncovered hxed prices Of
buying orders. so that the decline
did not go far.
Erie PuxEling.
The market action of Erie is puz-
zling most of the Street. After
showing great strength on Satur-
day and getting up to a new high
for the year. the stock opened a
point up this morning and advanced
another point on a turnover of only
a few thousand shares. In commits
sion house circles a wide variety
of reasons was advanced to ac-
count for Erie's sudden awakening,
ranging from merger reports to for
eign buying consequent upon the
restoration of fortnightly settle
ments in London. In some quarters,
however. 1t was pointed out that
the price of Erie stock has by no
means reflected the Improvement in
the roads earnings. which should
show a substantial balance for the
shares for 1922.
The Street does not yet seem to
be satiated with merger talk, many
of the rumors which have been in
circulation about the independent
steel combination being revived
this morning. and this group of
stocks following the devious course
of different versions as they sue
ceeded one another in rapid success
sion. Close observers freely express
the opinion that the next group Of
stocks which will be affected by
the merger mania will be the rails.
1t is well known that more than
a score Of railroad combinations
have been under consideration at
various times during the past six
months. In the case of only one
important lime, the Lake Erie and
Western, have negotiations pro-
ceeded to a contamination of the
deal. but there are several others
which have gotten to the point
where bankers have been asked to
figure on the market ability of the
securities necessary to effect the
combination desired.
The more speculative class of
railroad bonds which. exhibited
marked strength on Saturday were
actively bid for again this morn
ing with the result that many of
this class of securities again reg
istered substantial advances. Many
Of the JUNIOR issues of the less
prosperous companies are still SELL
ing On = tasis which would suggest
n r-cetvsrshjp in the offins IL not
close at hand, and there has been
good deal of quiet buying Of
such securities by those who feel
that they are in a position to know
that The worst is distinctly MT vet
TO come as regards many Of these
companies.