The New York herald., 1922-05-24
FINANCIAL NEWS
AND COMMENT
Stock Market Strong in Spots,
but Movements Confused;
Liberty 3 1-2s Over Par.

The stock market lacked yesterday
new positive influences to keep it's for
ward movement going, with the result
that both industrial and railroad shares
took on highly confused appearance
after a fairly firm start. Speculative
energy for the rise seemed to have
grown weary after last weeks excited
ventures. based on steel and copper
merger expectations. There were strong
spots which reflected bidding for par
ticular reasons and included the Erie
Railroad shares, Republic Steel. several
hish priced oils and scattered array
OF junior rails and Industrial specialties,
put 10 pronounced tendencies developed
on either side of the market Possibly
n slightly firmer tone of time money
rates acted to check the advance. al
though the money market was changed
in color rather than in quotable figures.
a 4 per cent. quotation for call loans
recorded more stable and easier con-
dition than prevailed on Monday. when
the rate went from ~ per cent to
per cent
1t is more than probable that factors
with bearing on the.future of railroad
earnings will become prominent in the
next few weeks. and rail shares were
lstudied yesterday for signs of any
demonstrations in advance OF discus
slons of rates and wages. Since the
/ important meeting of railroad manag-
ers with President Harding on Satur-
day night enough of the sentiments ex-
pressed then have come to public atten-
ton TO show clearly that the operators
nave not changed since last year their
/ opinion on one important point, namely.
their unwillingness to see freight
charges reduced without a commensur-
ate reduction of wages. AS a railroad
committee has begun TO function and
Will confer with the Interstate Com
! merce Commission in a day or two, the
rate making body should be informed Of
the railways position before the Rail-
| road Labor Board renders its opinion of
the last application for wage cuts The
rail stock market has displayed lately
more confidence that rate alterations
would bear. close relation to costs rep
resented by wage accounts than ii did
In the second half of 1921, but invest
rnent in securities of the carriers doubt
less has been made cautious by the re-
currence now and then of such a rumor
| as was heard yesterday and which was
| To the effect that 10 per cent. reduction
! or rates on many commodities would
be announced soon. The market heard
1t without special emotion as it was tem-
pered by the suggestion that wage cuts
would be made to apply at about the
same time that rates were marked
down. The Union Pacifics April income
! account, showing a decline of approxi-
mately s1,500.000 in gross and net
earnings from those of year before
had no effect on rail share quotations.
Very light offerings of new bonds this
week have suggested a congested state
of certain classes of securities and cor
porations desire to hold off until their
need for funds should be greater than it
is now. Liberty 3ia's went yesterday
to slightly more than par, almost to
their highest level of this year and
there was excellent demand on ris-
ing scale of prices fo- Erie issues, Mis-
souri, Pacific 5s. St Louis and San Fran
cisco and Seaboard Air Line bonds and
copper company convertibles. Specula-
tion had much to do with their activity.
The investment market probably has
been interested this week in Treasury
plans for the middle of June. A good
sized certificate or note issue is looked
for. and the rates will help shape plans
for foreign and domestic issues to come
out in the ensuing three months. The
T-easury's announcement should come
before the end of this month.
Once again the wheat markets un-
derlying strength fooled traders yester-
day, the May option leaping upward
more than cents bushel. Cotton lost
a little ground on realizing sales.