The New York herald., 1922-03-30
FINANCIAL NEWS
AND COMMENT
Rail Issues Have Strongest
Day of Year - Call Rate
Firms to 5 p. G.

Railroad stocks felt yesterday tho
overflow from the bond market Of buy
Hg orders, based on the generally
favorable record Of February rail earn
srss, and the result was about the most
impressive display OF strength seen this
scar in shares OF the carriers. Prominent
"A leadership were such weli considered
.ssues as Southern Pacific. Reading
Chesapeake and Ohio. New York Cen
trai, Norfolk and Western and Union
iacifie, and new speculative followings
evidently were attracted 10 many lower
priced issues, notably Southern Railway
Chicago and Eastern Illinois and New
York, Ontario and Western. The tone
of the market was established by size
allie gains Of those shares la the first
bcur, paving the way for general
strength OF industrial stocks on the APP
psarance OF weekly steel trace surveys.
r'he more active groups advanced a
point to points and gave the best ex-
aibit Of power in late transactions. A
firming up OF the call money rate from
AZ per cent. to 5 per cent. after most
OF the days loans had been arranged
was OF no influence on trading.
The combination Of railroad reports,
showing substantial increases of net in
comes ia the South and irregular
changes, compared with those os Feb
yuary, 1921, in the middle West. with
cheerful reports from the steel trade,
gave the constructive side OF the stock
market considerable material with which
10 work. 1t is clear now that a spurt
os buying followed the price advances in
steel a fortnight ago and IL Is also
pain that railroad purchases OF equip
iient and road material form the back
bone OF the trade. The Iron Age esti-
rated that March bookings were run
ming higher than az any time since July
and August. 1890 A significant item
of the days news was that the United
States Steel Corporations plans for in
creased pig iron production were en-
'arged ia the last week, ilinc furnaces
to be started UP instead off six an
iounced a week ago. This seems to in
( cate that the corporations coal stocks
and prospects for additional receipts
enable the subsidiary companies to
Ignore chances OF difficulties because Of
the pending coal mine strike. If the
strike outlook was going to disturb in
eustry signs Of anxiety should have
been seen by this time, but none have
Teen evident anywhere.
Liberty bonds led the market for
funded securities, the Third and Fourth
AIS reaching new high points for the
ytar. The bond market this week has
-corded a demand so extensive as to
be almost amazing. In Two Gays nearly
500. 100000 Of new Issues have been OF
tered, and despite pressure from that
ource the prices Of old line bonds have
Laincd ground with considerable vigor.
The easy money outlook and the current
relaxed situation OF rates suggest the
continuance of investment demand, and,
as dealers could place more good bonds
than are coming forward 1t Is Drobabls
that potential borrowers viii be urged
in the next few weeks to make the
faost OF present opportunities. In that
connection foreign loans are Dehg
studied and several are expected before
tie middle of April. :,
Foreign exchange had very dul'
t.ay. fluctuations moving through a
rarrow range Sterling went forward q
.half cent in the morning but later lost
l.at advantage and more. with iinai
,,rotation OF 1865. MaTs held fairy
steady despite another heavy increase
or Reichsban,< circulation. Cotton ana
erain receded under light sales.