The New York herald., 1922-01-17
FINANCIAL NEWS
AND COMMENT
Call Moneys Rise to 6 P. G.
Checks Strong Stock and
Bond Markets.

ket yesterday. comprised In q sharp adj
vance Of the rate from 3h per cent to
per cent. was the counterpart of
events on several occasions last spring
and summer, when the quotation receded
for day or two below the relatively
high average Of that period. Interior
banks drew down their balances In New
York. causing temporary scarcity. corr
rected on earlier occasions by stiffening
Of the rate. 1t was believed yesterday
in banking quarters that conventions
would be observed again and that the
rate soon would become stabilized, per-
haps at slightly higher range than
the az per cent. which prevailed most
of last week. The fact that collateral
time loan rates were unchanged at Az
and III per cent. indicated an album
dance of money at reasonable rates. II
will be recalled that last weeks New
York Clearing House bank statement
noted an expansion Of nearly SIS. 900
in loans. coincident with q fall OF
$3S.000,00O in reserve carried with the
Reserve Bank. The member banks evil
IDENTIFY used their free funds literally to
reduce obligations at the reserve insti-
tutions. and when loans were called yes
terday to meet interior requirements
supplies became somewhat restricted.
Call money in other cities has remained
great meaning as far as the local New
York market is concerned, suggests that
last weeks rate was out of line with
money costs elsewhere.
The. tightening of money had the ef-
feet of checking In the afternoon a
buoyant stock market and continued
wide buying movement in bonds. But
the check, although bringing reactions
of point in numerous shares. did not
alter the character Of the market, which
was one OF strength until the close Of
business
The market was very broad and
while automobile, railroad equipment
and oil stocks and several better placed
rails established the true tone OF trad
ing it was among specialties that the
largest advances occurred. Atchlson
was again leader. being carried UP to
par for the first time in more than two
years. 1t left off points lower than
the maximum. Several steel specialties
acted as though group buying OF spec
ulative character was under way.
Tho result OF the higher call loan
rate in the bond market was less evil
dent than it was in stocks, although
prices of corporation issues were some-
what irregular at the close. The firm
ing up OF Chicago, Milwaukee and st.
Paul Issues was a noteworthy happen
ing, rejecting, as It did, the companys
success in obtaining an extension of Ave
years from the Government for its only
large maturity of this year. amounting
to s25, 100000 and falling due on March
/. Liberty bonds again receded slowly,
probably being offered in quantity by
foresighted buyers Of large resources
who laid in supplies last month for
profit.
Cotton continued the weakness which
was rather puzzling in the final days
of last week. A late rally eliminated
part of the early decline, which amount
ed to 40 to so points. Wheat and other
grains held steady.
Foreign exchanges found no incentive
for movements in either direction In
news from European centers. Sterling
left OFF at the price that it did on Satur
day and most other quotations were
slightly lower on the day.