Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-16
PRICE movement
WAS VERY uneven
Reduction in Bank Of England
Discount Rate Without
Effect

New York. Feb. 16.-Today's stock
market gave good account Of itself
In many particulars. It once more gave
convincing demonstration as to alb
sorption capacity. us there was evi.
IDENTIFY quite a considerable volume Of
realizing sales. Price movement was
somewhat more uneven. but underneath
the alternate reactions and recoveries
we're was at all times running an un-
dercurrent of comprehensive strength.
a number Of prominent stocks broke into
new high ground during the day, the
more notable being U. s. Steel and
Mexican Petroleum.
! The big piece Of news Of the day came
In the early London cables ANNOUNCE
Ing reduction in the Bank Of Egland
minimum rate Of discount from to AZ
per cent. This is the lowest discount
rate since 1914. but while interesting.
was Of no particular Importance to the
banking situation here as the reduction
merely conforms to the last made By the
Federal Reserve Banks. Some. how
ever. were of the opinion it foreshad-
| owed further cut in the rediscount
rate by the Federal Reserve Banks in
the Eastern section. 1t was, never
theless. important in another way, be-
cause it supplied additional convincing
testimony of the rapid progress in re.
construction on the other side Of the
water particularly applying to the
English end Of 1t.
Not only did this particular incident
iail to inject new life into the trading,
nut the further easement of money mar
ket conditions fell similarly fiat as n
market FACTOR. This was more surpris-
ing because the 4 per cent renewal rate
l hr,
several weeks was made in face of the
announcement of the heavy treasury
Withdrawals. The Government took
approximately $50. 900. 900 out of the
local banks today, but in reality the
withdrawals were largely a matter of
bookkeeping between the banks having
to do with the recent issue of certificates
I For the halting tendency no better
, reason could possibly be found than the
uncertainty attending the soldier bonus
legislation. Most Of the sting of the
proposed legislation in so far as the
market world is concerned has been
eliminated in the firm stand taken by
/ President Harding and Secretary Mel
Ion. On the other hand the matter is
continuing under consideration. and
: the source of revenue is still an unsolved
problem. which situation therefore con.
tains a possible element of disturbance.
1t was natural a disposition should ey-
list on all sides to proceed cautiously
until some definite program Is reached
or suggested. The very fact that the
matter Is still live question makes
it ever possible of producing unpleasant
surprises.
contrary to general expectations
lowering Of the Bank of England's dis
, count rate was without bic in
tluence upon prices at the opening.
Gains and losses were evenly dis.
American Locomotive which broke IN
points on the first transaction changes
were limited to fractions. The list de-
velOped firmer tone within the first
half hour on buying Of leading oils and
Shippings. especially Mexican Petroleum
and Mercantile Marine preferred and
American International. Alternate re-
actions and recoveries occurred in lead
ing stocks during the balance Of the
morning, motors and selected special
ties being most erratic. American Ice
fell IA points, but quickly recovered.
Studebaker, Chandler and Pierce Ar
row were under pressure as the result
Of reports Of further cuts in the auto
mobile trade. Buying of seasoned rails.
especially Southern Pacific, Atchison
and Reading, stabilized prices again at
noon.
Apart from the copper group. which
suffered from profit taking following
Yesterdays last upward spurt, the gen.
pral market moved forward in the early
afternoon, especially Mexican Petro-
cum. which extended the early gain to
:: points, touching the highest price Of
the year. At the same time General
Electric improved almost . points. III
the meantime, with the promise of the
{ !mination Of bond issue to meet the
soldier bonus requirements. ali the So
allied Government issues became lead
! ing active attractions of the bond di-
vision The Liberty Is and / scored
gains Of !B and 20 points respectively.
Leadership swung back to United
| States Steel in the final dealings with
that favorite running up to 9lai. II
new high for the movement. Other spe-
cialties also made higher prices but re-
acted moderately near the closing on
selling Of the rails.