The New York herald., 1922-08-22
FINANCIAL NEWS
AND COMMENT
Stocks Soar as Participation
by Public GrOws-Rails
Lead the Market.

| Extraordinary progress was made yes
terday In the financial markets in the
process of discounting the end OF presen;
labor troubles and the big revival Of
business which almost every one is con-
vinced will result. Stocks forged ahead
with a vigor not seen for at least two
months. and indications OF new public
participation were stronger than last
week, when they first made their appear
ance.
Gains OF from one to four points ami
more were registered in the active list.
with the rails easily the leaders. There
yesterdays market that short covering
was playing a part In the strength Of
the general market, but figures received
from the stock loan crowd after the
theory These reports indicated a
heavier short interest at the end OF the
day. especially In the railroad shares,
than at the beginning.
movement In railroad stocks yesterday
was publication of the statement of the
big Four" to the effect that the brother
hoods had no intention OF walking ont
and throwing the weight Of their organ
izations against the carriers in tho
present delicate state OF negotiations for
settlement Of the shopmen's strike.
Naturally, It was the railroad shares
which first reacted favorably to news Of
that character, but they could not ad-
vance as q group to the extent they did
without carrying the entire market along
with them. As consequence the indus
trials and the public utilities scored sub
stantial gains. Next to the rails tho
equipment stocks and the utilities were
the best In point of activity and strengtr.
Most attention was paid to standard
dividend paying railroad shares such
as New York Central. Norfolk and
Western. Reading, &C. New York Cen
trail sold above par for the first time
in five years; Chicago and North West
ern, one of the features Of trading In
the last three or four weeks. made a
further sensational gain of almost four
points to 91A.
fore the close made no perceptible i'm
preston on the demand for stocks. If
the industrial list shaded slightly from
It's high marks the rails offset the move
ment by getting into new high ground
just before the final gong rang. The
only reason which could be advanced
for the marking UP Of call money from
az to per cent was the heavy and
somewhat unexpected demand for funds
from the floor of the stock exchange.
Otherwise, money rates gave no evi-
dence of a restricted supply.
Much of the same enthusiasm which
marked the advance In stocks was found
in the cotton market. All options were
very strong all day and closed near the
best prices. with net gains averaging
better than a half cent a pound. The
short interest in the cotton market has
been having a rather hard time of It
lately and yesterday 1t had little chance
to cover commitments except at sub
stantial loss.
The demand for railroad stocks was
reflected by similar state OF affairs In
the bond market. Big gains We're re-
corded by the bonds OF leading carriers.
and other issues at the same time. with
perhaps the exception of the u. S. Gov
ernment war loans. were marked up.
Liberty bonds remained steady through
out the session. While the bonus talk
OF the last day or two may have hurt
the Liberty bond market somewhat 1t
Is not taken seriously in the financial
district, where there is supreme conf
dence that the President will veto any
bonus legislation which may pass the
two legislative houses.
Foreign exchange rates were higher.
with business extremely quiet. Nothing
in the foreign news over the week end
was calculated to have any important
effect on foreign currency rates.