The New York herald., 1922-08-31
FINANCIAL NEWS
AND COMMENT
Stocks Mount to Higher Price
Lcvels-Canadian Funds
Offered at Parity.

Fresh developments OF a nature calcu-
lated to furnish new impetus to the
Wall Street markets we're entirely lack
ing yesterday. yet business in stocks and
bonds was in larger volume and prices
continued unchecked In their upward
course. The labor situation WIS practi-
cally unchanged and market operators
lad little to work on save rumors and
semi-official predictions.
II was obvious. however, that Wall
was about over and that the railroads
We're In full control of their labor situa-
tion. Conditions in Europe were not
easily analyzed and hesitation in the
confidence that there will be satis-
factory settlement with Germany. The
Preparations Commission deferred It's de-
cison in the matter of moratorium
until to-day.
Trading in stocks was broader than in
any recent session and pool activity was
more noticeable. Spectacular gains were
made by several industrial specialties
and many stocks recorded new 4igh
records for the year. Particular atten-
tion was paid to the shares of corpora
tions engaged in the manufacture of
articles used in the building trades.
Otis Elevator, advanced points and
American Radiator rose points on un-
unusually large sales.
With an increase in outside interest
in stocks came the rumor that the Fed
eral Trade Commission would not ap-
prove the two proposed independent steel
mergers. Apparently there was no real
foundation for the report. but it served
to shake out weak holdings in the steel
group. Republic Iron and steel suffered
the most from the report and declined
more than points and Gulf States Steel
lost Ia points. United States Steel
common held firmly and finished the day
within a fraction of its highest price of
104Ts
A striking demonstration in the equip
ment issues offset the drive against The
steels The leaders of the equipments,
Baldwin Locomotive and American Loco
motive. established new high prices for
the year, the former going UP / Is points
and the latter 2h points.
Public utility stocks were strong and
railway shares, with the exception OF
Chicago and Alton, which broke badly.
were buoyant.
A slight tension in the money market
was disclosed by the hardening of call
rates to Az per cent. In the outside
market II was reported loans were ar
ranged at per cent. This Tightening,
which is usual at the end of the month.
received only casual attention. 1t has
become the habit OF commercial banks
TO stop lending money on call as soon as
deposits are drawn down at the end of
the month. These banks have shown
very plainly OF late that they do not
care to increase their rediscounts at the
Federal Reserve Bank TO supply Wall
Street with funds. In this attitude they
probably are prompted by desire 10
avoid all criticism at the Federal Re
serve Bank In the matter OF helping
further initiation by encouraging speed
lation In stocks.
The most important development in
the foreign exchange market was the ad-
vance in Canadian exchange. which was
quoted on a par with American dollars.
This Is the first time Canadian money
has been offered at par since January.
1918. Canadian dollars have lowered
within fraction of par since the be-
ginning of this month. The European
exchanges lost some of the gains estab-
lished earlier in the week and fluctua-
tions In francs and marks were some
times erratic