The New York herald., 1922-01-31
FINANCIAL NEWS
And COMMENT
Stocks Continue To Drift
Lower While Sterling Climbs
10 New High.

The principal markets were so COM
! pletely unrelated in their movements
| yesterday .that it was clear that no
common impulse was operating within
them. Sterling exchange, rising to 4.2S,
for new high record since 1919, carried
! francs. lire and other European rates
| higher than they were on Saturday, but
| at the same time the cotton market
which frequently is stimulated by a
rally OF the exchanges, displayed weak
! ness throughout the session. Stocks
with the exception of few specialties
! continued to drift lower, and rather
Indifferent display of sentiment was seen
\ In corporation bonds. A significant event
! OF the day was the quick distribution
! Of $40 1000 600 of Burlington per cents
and the immediate establishment OF a
premium over the offering price in open
market transactions. As the yield a;
| the sale price was the lowest that any
! long term rail issue has been or-ereo
in the current period, the market plain
| ly was impressed, bnt there is no doubt
| that funded securities have been af-
| fected by recent money market develop
ments. Call and time rates are show
! ing more firmness than was expected
a month ago and although the under
tone has not been sufficiently stubborn
TO cause substantial bond resaIes. il
has promoted caution and revision OF
Investment calculations. The call loan
rate was per cent. yesterday for re-
newals of old loans and later it got ur
to 5i4 per cent.
There was not much to be said ABOUT
dealings in stocks. Pools were quie'
| and luuidation Of small volume and a
moderate amount of short sales were
seen in shares of industrial companies
which still have troubles to overcome
or unsatisfactory statements for 1921
to issue.
The Steel Corpora tons report for the
/ final quarter of 1921 which will DC
made will permit survey of the entire
year. Railroad stocks sagged. although
one or two companies reported better
results in December than others did las
week. The Northern Pacifc's gross was
S1.500.000 less than 1t was in Decem
ber. 1920, but Its net operating income
\ of $2.oO5.527 was more than twice wha
IL was in December. 1920.
The movement of foreign exchanges
supplied the days most interesting sub.
iect. Sterling disclosed sufficient re.
siliency to retain a two cent net gair
in the face OF much realizing selling
closing at 4.96ia, and French francs Were
close enough TO the s.36 cent level tc
show that nearly all the reaction which
| followed the retirement OF the BRAND
ministry had been made up. Dispatches
from London showed that the markets
over there were as puzzled concerning
sterlings great strength as were those
on this side. In the cases OF both Eng
land and France, drastic reductions OF
! imports last year has had bearing
on exchange. but that influence was
not expanded by enlarged exports. as
compared with those OF 1920. More in
formation about tangible factors af-
fecting the exchanges may come soon
with further light on plans for the
Genoa conference. 4 firm tone OF
United Kingdom bonds yesterday APP
peared to be connected with the rise OF
sterling. the point of contact being
supplied by conversion rights attached
10 the bonds.