The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-01
STEEL REPORT
NOT GOOD NEWS
IN WALL STREET
BY STUART p. WEST.

~ew York. Feb. I. - Immediate
avs developments under which
she stock market moved today were
updeniably depressing. The main
.o,nt of interest was the question
4 how prices would meet the test.
The steel corporations earnings for
,,s fourth quarter of 1921 were bad
= the sense that they showed such
rapid progressive monthly de-
srsase. with the December not only
ne lowest of the year, but the low
sst of any month in many years.
rne inference was that January,
,eaa report would certainly be no
after and that it was doubtful if
nv Improvement could be expected
hefore March or April.
besides the poor showing in the
.teel figures, there were other lc-
s;dents calculated to try the tenn
ar Of the financial community. One
rss the receivership for the LOCI
motive Company, and another the
nrice cutting announced this morn
ing by the Dodge Brothers con-
cern. These were quite independ-
ant occurrences, having no signili-
rance whatever on the automobile
trade generally. But in the specu-
sitiye position, happenings like
latiye market which occupies a sen
these would ordinarily have a tenn
norary effect upon sentiment that
rould produce important price
changes. It was decidedly inter
esting to note that these news items
had so little influence on the motor
shares and that the United States
Steel report should have brought
50 little selling into the steel
stocks. These results furnished
proofs of the difference between the
present Wall street situation and
that obtaining in the first eight
months OF 1921.
Call money got up to per cent
before the day vas half over. This
s advance in the first day OF the new
month when funds involved in the
large corporation payments have
not had time to return to the mar
ket, was not surprising. The rise
in the foreign exchanges was le-
sumed with sterling making new
high. German marks were helped
BY the strength in other rates. The
per cent call money market be-
ing regarded as nothing more than
temporary, had little effect on The
3 days bond dealings. While prices
we're irregular there were more ad
vances than declines. A new high
record for the United Kingdom
loan of 1929 was a natural accom-
paniment of the continued advance
In the value of the British pound.
hidvale Steel operations for the
closing period of the year were q
There was a deficit after interes;
gnd depreciation charges Of
S,379,7S2 against a deficit Of
sl,249,136 in the third quarter, and
net profit of $2,056,724 in the finaI
quarter of 1920. Yet Midvale Steel
shares were affected no more than
steel common. The conclusion
seems reasonable that the market
for the steel shares if not alto
gether immune from unfavoraDiC
statements of the past, was shap-
5 ing its calculations more with
reference to the. future. Mills are
getting business from the equip
ment companies who are in returs
receiving larger orders from the
railroads. The construction bust
S ness is also to show increasing &C.
tivity which was looked for. AS &
) result larger bookings and better
j demand all around are reported FIJI
the last week than any time in Jan
uary.