The New York herald., 1922-07-20
FINANCIAL NEWS
AND COMMENT
Stock Prices Grow as Events
Filled With Sunshine Cast
Rays on Market. ..

The decided strength of Industrial
stocks and q number of the rails yes
terday demonstrated pretty thoroughly
that spectators We're inclined to accent
favorable events at their full face value
and be unmoved by news of unfavora BILE
character. The market has indicated all
along that 1t could not be depressed any
great distance by the progress of the
two great strikes. The reason for this
Is partly because tho reduction of coal
supplies has not caused widespread hard
ship In the Industries while the rail-
roads have been able to keep traffic
moving well In Eastern territory. Both
railroad and manufacturing shares have
been supported by the hope that effective
measures would be taken. either through
private resources or Federal assistance.
to keep the trains running.
Both spectators and investors have
been undaunted by slow results In the
settlement OF the strikes They ap-
parently have looked ahead, knowing
that all strikes come to an end sooner
or later and believing that business will
find a stimulus in the settlement when
ever II comes.
In yesterdays operations the market
refused to be concerned over very plain
evidence in steel trade reports that fuel
shortage was slowing down production
In the Youngstown district In the face
OF this information. together with re-
ports that congestion at railroad iunc.
tion points around Pittsburgh was re-
tarding tho flow Of raw material and
finished products. Crucible Steel shares
advanced points and United States
steel. Republic Iron and Steel and sew
eral junior steel issues were firm.
A significant demonstration of the
markets. strength was supplied in tho
action OF oil stocks after announce
ments were made of gasoline price cuts
OF to cents gallon. The consump-
ton OF gasoline Is now running at
record proportions. On the basis of es-
timated consumption In June, the
S66,O0O,000 gallons In storage as
OF May 81 would be reduced heavily
before the end Of the summer without
the maintenance Of high production.
Thesstock market believed last month
that fall Of prices was quite remote,
yet when 1t came no particular sur
prise was displayed and certain oil
company shares gained ground yester-
day. The Street evidently accepted
quickly the relation which existed be-
tween a so cent barrel reduction of
crude oil and cut Of refined petroleum
prices, although it was not clear that
the evening up process would not affect
the profits Of producers.
The stock market, while interesting
in several respects, was crowded for first
place by the strength of railroad bonds.
Seldom before in this year Of great In
vestment capacity has such evidence
been seen of the hunger for prime Sc
curities as appeared in subscriptions for
ss.s00.00o Northern Pacific Is. The
block, offered at price to yield $50
per cent, was oversubscribed at least
| ten times Immediately at the opening
of the books. The bonds quickly com
manded q premium Of two points over
the sale price In the Curb market.
One explanation for this keen de-
mand lay in the money market, for
both collateral time loan and CONNER
| cial paper rates receded " per cent. A
per cent. quotation for prime six
months bills equals the lowest OF this
year. Call money was quoted at per
cent, and supplies were larger than on
Tuesday, when a temporary decline OF
offerings sent the rate from to per
cent. -.
The foreign exchanges eased off,
marks going from .2oh to .18B cents
approaching the years minimum.
Cotton advanced moderately on news
| of weevil ravages and unfavorable
weather. Wheat prices receded 1b to
| 2 cents q bushel.