The New York herald., 1922-05-17
FINANCIAL NEWS
AND COMMENT
Money Rates Easier-Copper
Issues Advance-MOtor
Stocks Finish Up.

The principal features of financial
markets We're vested yesterday in an
easement of time money and CONNER
cial paper rates. which Topped u per
cent. off all quotations and equaled this
years lowest quotations highly irregu-
lar and nervous fluctuations of stocks I:
firm tone in cotton. leaving all but
one option above the 90 cent level;
sharp bulge of wheat prices. especially
the July contract, and establishment of
new high quotation for silver. The
decline Of fixed period money quotations
was probably the days most significant
development. Sixty to ninety day loans
on mixed railroad and industrial coll
lateral We're made at per cent, and
that rate was bid for all maturities. The
bid of Az per cent. for six months COM
mercial bills Of the first grade had not
occurred since early in March. Again
call loans were arranged at 31a per
cent. and altogether the relaxation Of
charges indicated that despite the grad
ually 4ncreasing demand for accommo-
daton in business lines the liquidation
Of old frozen credits and the funding Of
many bank loans into securities were
keeping the banks on ar even kee;.
1t was not surprising that Bethlehem
and Lackawanna Steel stocks should sell
off when terms Of the merger were made
public. That is the conventional process,
irra IF "a frr !, al 1t,t
it was logical that Bethlehem shares
Should be affected by the pending in
crease of the number outstanding. A
commentary on the business outlook as
the two companies view it was afforded
in announced plans to spend some
! $1G,000,000 on Lackawanna properties
soon. Steel issues OF other companies
were inclined to work higher. some were
strong, but the high lights of trading
were comprised in advances OF copper
stocks throughout the session, and auto
mobile stocks made a vigorous surge
forward in the final hour. Prior to the
| last hour hesitation and uncertainty
marked speculation. but it was notice
able that short sellers failed to follow
down those industrial shares which
wavered, and there were decidedly dull
periods of trading at times. Fairly
sharp upbidding of several specalties.
notably American Ice, with 4 u point
upturn, suggested that pool operators
were feeling out the market after being
comparatively inactive on the buying
side for three weeks.
The advance of 3-S to as cents a
q in xx,hA tAne f.s
good export purchases and a strong
market tone in Liverpool and Buenos
Aires. Heavy PURCHASES carried the
september contract to a new high rec
ord for this season. The principal dem
onstration occurred in the July option,
both new crop months. Possibly, the
Supreme Courts decision that a section
of the futures trading act was uncon-
sttutional tended to stimulate specula-
ton, but the more probable explanation
for the rise was the same as figured in
last weeks bulge of May wheat namely
the complete underestimation by traders
of the demand from domestic and for
eign consumers
The money market continues to fur.
ther the sale of bonds and it is probab BILE
that several large pieces of financing,
including one or two foreign offerings,
will be arranged in the next few days
Yesterdays market for existing bonds.
however. was irregular. A decline of In
terborough Rapid Transit 5s evidently
reflected nervousness concerning the
plan for rearranging the Man
haitian Elevated contract. The entire
traction situation in New York is in a
state which promotes instability of Sc
curity issues, but. as time passes, more
information is coming to light about
underlying values and it is not unfavor-
able.