The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-02
STERLING HITS
new HIGH SPOT
IN DAYS TRADE
BY STUART r. WEST.

Wall Street, New York, June p
A further remarkable rise in sterl-
ne exchange, rather pronounced
hardening in the money market and
4 government cotton report show
ing a condition higher than last
rear, but still considerably below
he average were the chief points
pf interest in the financial situation
today. Sight drafts on London got
across SAT- for the first time in
three years. Exporters with re-
nuirements to cover later on and
I! large Spectators have evidently
/ reasoned that having gone on
through the level at which it
stopped at the outset of March ana
Al which it held during the greater
part of May, the sterling market
was starting on another important
upward swing.
The renewal and call loans were
pushed up to per cent, the high
est IN over three months. This
had the effect OF curtailing Offering
OF time money andwhereas month
ago lenders were putting out funds
at 80 and so days at 30 per cent
and a week ago at 4 per cent they
we're holding off today for MINI
mum Of Az per cent. In view OF
the fact that the federal reserve
ration is still moving up and that
redscounts are not increasing, in
deed the statements for the last
week shows a decrease of S15,S0O,-
900, it is evident that increasing
trade requirements are not the III
auence at work. The rise on the
stock exchange no doubt is to some
extent responsible but it is not
more than a minor factor.
Mainly the higher money rates
are the result of treasury with
drawaIs plus the ingathering OF
funds needed in the June l corpo-
ration disbursements and hence are
temporarily in effect.
Probably they Will be corrected
in the usual way, mainly through
inducing out of town banks to en-
large their New York balances.
1t was another day of lively fiuc-
tuations in the stock market. But
along with numerous sharp ad-
Eances in parts of the list, there
went equally sharp declines in
other parts. Wall Street was sc
puzzled over the terms of the Re
public Iron and Steel, Inland Steel
merger, that it was not until ]
o'clock that trading began in the
new North American Steel company
shares when issued, Republic Steel
and Midvale were heavily sold for
the first hour or so but rallied later,
ha1 hU he CT Oft nf I
s. Steel common, which sold at a
new high for the year. Assump-
ton of leadership by steel COM
mon, the new high record for
Studebaker and the continued sue
cess of pool operations in variety
Of specialties were reassuring incl
dents from a speculative stand
point. For the time being at least
they served to distract attention
from the break in some of the re-
cent favorites like the tobaccos,
cocoa cola and certain of the
American oils.
The terms of the merger of Mid
vale Steel, Republic Iron and Steel
and Inland Steel were widely dis
cussed in financial circles today
The announcement that negotia-
tions were pending for acquisition
Of other properties by the new uni
fed company gave rise to numer.
Gus rumors, affecting other stee
Independents.
The government estimate of con
dition on May 25S 696 was about
the same as was expected. There
was some sharp fluctuations fol
lowing the appearance of the report
but in the end proved to have been
well discounted.