The New York herald., 1922-07-15
FINANCIAL NEWS
AND COMMENT
Lower Money Rates Send Bond
Prices Higher-Stock
Market Irregular.


centive than did stocks yesterday to dis
play strong tone. aided by exception
ally large supplies of cheap cali money
and the prospect of continued monetary
ease held out by this weeks statement
OF the Federal Reserve Banks. Bond
prices, consequently, were edged upward
throughout practically the entire list. led
by new high records established by all
Liberty issues. Three of this group
reached 101, premium above par which
often was dreamed of by bond holders
when prices were between IS and SO two
years ago. A broad demand existed for
the more prominent railroad and in
dustrial bonds. The underlying invest
ment situation was of a character to at
tract new financing on large scale
in the next week or two.
The reaction of call money from to
"a per cent. on the New York Stock
Misunderstanding the lowest quota
and the placing of substantial amounts
outside at 2la per cent. raises the ques-
ton again whether or not rates will be
firmer within few days. Banks Of the
interior. correspondents of New York in
stitutions, see no reason for maintain
ing large balances in the metropolis
when money in demand loans brings
smaller return than if investd in good
bankers bills
Frequent dips of the call rate to 8
per cent. ard lower this year always
have been followed by the transfer Of
funds away from New York, and it
usually has refused to return until the
lending rate went up to 4 per cent. But
such movement this time would indi-
cate no greater stiffenng of the money
position than it has before; on the con-
trary, with the wheat crop coming on
the market shortly and the demands Of
business being cared for easily by the
banks. 1t would surprise nobody IL loan
charges were more relaxed until autumn
than they have been heretofore. This is
assuming that wheat moves to market
with facility equal to the rapid flow Of
the cereal into consumption last year.
Stocks were unsettled in the first hour
of business, thereafter recovering early
losses in most cases and In some dis
playing much strength. The shares to
show recessions at the close were
grouped mainly as specialties. In view
of the apparent spread of railroad strike
difficulties and the probability that Fed
eral troops would soon be called upon
to keep trains moving in some sections
the stock market gave good account
of itself. The fact that railroad stocks
were less vigorous than many indus
trials was fully in keeping with the
situation.
1t is the carriers which have the
heaviest stake at risk in the present la
bor' disturbances. Loss Of traffic because
of inability to move trains might be
made up later, but the probabilities are
that short haul freight would go in part
by other modes of conveyance without
waiting for the railways to carry it.
American Can and Consolidated Gas
again led in speculative interest among
the industrials. but the afternoon
brought some vigorous buying of petro-
leum issues. A number of new high
records for this year were reached by
manufacturing and public utility shares.
A slow reaction in the last hour left
prices of the leaders under their best
levels but the market was irregular
| without being weak.
Foreign exchanges were slightly lower
than the day before. The Preparations
| Commissions directions that Germany
pay the July Is installment appeared ia
have no effect upon either franc or mark
| rates.
Cotton declined 16 to IS points, los
ing much of Thursdays strong recovery,
and grain quotations were somewhat
| soft.