The New York herald., 1922-09-18
FINANCIAL NEWS
AND COMMENT
Stiffening Tendency in Money
Rates New Sign Of Bust
ness Expansion.
SECURITIES SHOW GAINS
European Debt Mars Picture
Viewed With Satisfaction
In Other Respects.
SECURITIES SHOW GAINS

DeNelopments curing the last week
have emphasized clearly the high rate
Of business expansion and prosperity
which may be looked for In months to
come. Higher prices In certain basic
Industries, a stiffening OF the rate for
money as requirements for funds for
Industrial and commercial purpx ses be-
come heavier. tho steady upward trend
OF bank clearings throughout tho coun-
try. continued decrease in unemploy-
ment. huge now offerings OF bonds and
innumerable other factors of vast I'm
portance all point In tho same direc-
ton.
out OF the way and the nation almost
entirely free from primary labo. diff
culties for the first time In many
months. about the only dark spot in
the whole picture as viewed by indus.
trial leaders to-day is the European
debt situation. And even hero some
solution Is confidently anticipated.
Stocks and Bonds Strong.
Tho strength In tho stock and bond
markets during tho last week was q
direct reflection Of all these factors
It would be useless to say that tho sct.
tiement Of the shopmen's strike In The
cases Of a large number of roads hat
no part IN the upswing In securities
but tho part which It played was. never
~
greater developments were present IL
large numbers and the bullish enthusi
asm in the financial markets was a re
Election OF all of them rather than O.
any one.
Railroad shares moved ahead undel
persistent buying, the investment ISSUES
being particularly strong. Specia
groups, such as the public utilities
some of the motors and motor acces
sories. the leading steel stocks. certain
Of the oils and equipments. all wer,
In active demand. and for the mos
part registered decidedly higher fig
ures for tho week.
Another reflection OF the gradual ex-
pansion In business was found in the
slightly tighter tendency of money
rates. There was no indication OF q
real tight money market. but the rate
stiffened nevertheless. Moreover. there
is little Indication that the low rates
OF the year-that is ~ per cent and
3 per cent. for call loans-will be seei
again for a. long time.
Demand for Funds Expanding.
Evidence OF what has been happenin.
to large surplus funds available few
months ago can be found In the reports
Of the nations bank clearings. A weel
ago they were approximately $1,000, 900.
600 above those for the same period las
year. an increase of more than II pei
cent. And as the Improvement con
tinues. the demand for funds Is goini
to be greater and greater. Scores O
new bond and note issues put out b.
railroad and Industrial concerns all Owe
the country during the last week gav'
mute evidence OF the same condition
Leaders In the industrial world ar
able to see clearly what may be looke'
for and to realize that there is much t
be done In tho way Of extension. sc.
IL the full force of the Improvement 4
to be felt.
During the last week the Unite'
States Steel Corporation made an
nouncement of S3 a ton increase Il
the price of rails. The conditions o
the Increase. however. were OF a. natur
TO reveal that q tremendous volume o
orders for rails Is anticipated by tn
leading interest. The new price of "a
a ton will not be effective until DC
tober /, but It will apply only to order
from roads that will accept delivery 4
equal monthly installments up to Jun
| 20 of next year. Continuation of tn
present price of $40 ton for the res
| of this month was also made contin
gent upon similar delivery terms
Leading Industries Improve.
This announcement Is likely to caus
a material increase in the corporation
unfilled orders reported at the end c
this month. Railroads which have tn
money for rail purchases either in han
or in prospect will be sure to rush thei
orders in as rapidly as possible and TAX
advantage of the lower price prevailin
for the next two weeks.
To what extent business improvement
has already gone in three OF the coun
| trys leading industItes-steel, oil an
automobile production-was revealed 4
Some OF the developments OF the weeh
More than half of tho blast furnace
which were forced to close down by rea
son OF a fuel shortage have been blow
In again and prospects are that YER
soon there will be in operation more o
these units than werc working befor
the coal strike severely cramped III
industry.
Pig iron production has jumped sharpl
and the tendency OF prices is higher. !
similar condition exists in the oil indus
try. where products, long a drug on th
market, are once more In demand. Ker
osene. for instance, has reached a ne,
| price lsvel whore refiners oan turn
out at a profit. Many refners In tn
immediate past have been producin
4 kerosene at a loss.
i The situation In Europe remains crit