Evening star., 1922-05-18
METAL SHARES ARE
MARKET LEADERS
MidyaIe, Steel Heavily Sold.
Money a Feature-Linseed
Oil Strong.
ny STUART p. WEST.

NEW YORK. May 1s.-The out
standing features in the financial sit
uation today were q very mixed mar
ket in stocks. a firm and rather more
active bond market, renewed ad-
vance In sterling exchange and q still
more relaxed condition in the money
market
The speculative element which had
been looking for Midvale Steel to
duplicate the performance OF Lacka-
wanna a week ago, were disappoint-
ed at what happened. r.
The rumor that the Midvale Com
pahy would be taken over by Bethle-
hem Steel was not absolutely denied.
but 1t failed to obtain even semi Off
cial corroboration.
Consequently the shares were very
heavily sold for while and this
put damper upon speculative en-
have figured in the discussion of
merger possibilities.
Copper Stocks Firm.
Wall street had, however. other things
that interested 1t quite as much as pos
sible combinations among the steel COM
panies. 1t had the plan which IL be-
lieved to be taking shape for bringing
into closer union some of the copper
producers.
1t had fresh advance in prices for
the copper metal and another new high
record for the year for silver.
There was also the general encourage
ment afforded by the lowest money rates
yet seen this season.
Loans for two months periods were
recorded at fiat per cent as against
the official figure Of IN, which has been
in force for the last month. Call money
on the stock exchange remained at 31a
per cent, but transactions on the outside
we're put through at an.
Helps Bonds.
|, There was an obvious connection
between these further concessions In
activity in investment bonds. 1t was
something OF an achievement that
company like Virginia Care olina
Chemical. which in 1920-1921 had a
loss of nearly $S.000.00o and is also
counted upon to show quite a dehcit
for 1921-22. could bring out $22.-
500. 900 bond issue this morning and
have it Immediately oversubscribed.
The metal stocks-coppers, smelt-
ing issues and zinc shares--took the
place of the steels in popular inter-
est.
1t was evident that this group was
making tardy response to the signs
which have so often been pointed
out during the last few weeks. that
unsold supplies had gone down where.
even with the partial resumption of
mining, consumers could no longer
feel sure of the prevailing low prices.
Apart from the metal storts. a
variety OF specialties were bid up
at one time or another. In ins ,ance: ;
such as Industrial Alcohol and
American Linseed more profitable
trade conditions furnished the in
centive.
Automobile stocks.
In line with the statement that
Studebaker earnings for the second
quarter will be $40 a share, bringing
earnings for the half year up to $ls.
it was learned today that General
Motors has already earned the full
ferred issues and will earn better
than 81 a share in the first six months
and probably So a share for the COM
mon for the year
The corporation expects to be free
of debt by the 1st of July.
American Linseed.
American Linseed stocks were
bought on the theory that they were
behind the market and had not
measured the improvement in the
company's business Linseed is part
ly producer of linseed oil and partly
a maker of butter.
1t is. therefore. a building material
company and at the same time a food
products company. But Just now 1t is
mainly concerned with the building
material end.
The expansion in construction
operations has brought a sharp ad-
vance in Linseed oil. which goes into
the manufacture Of paint.