The New York herald., 1922-05-27
FINANCIAL NEWS
AND COMMENT
Rail Stock Buying Heaviest Of
Last M0nth-Seyeral Indus
trial Highs Made.

The buying Of railroad stocks, which
began to enlarge on the day that the
10 per cent. freight rate cut was pro-
posed reached yesterday the largest pro-
portions of the last month. 1t was prob
able. however. that the movement was
less connected with particular features
Of the Interstate Commerce Commits
sion's ruling than with expectations Of
Chicago in day or two. Intimations
from official sources in the Railroad
Labor Board that the reductions. In part
at least. had been decided on before the
rate announcement was made failed TO
discourage spectators in their caicula-
tions that the two decisions would go
far to balance one another In their bear
ing on rail earnings. The strongest
stocks were Lake Erie and Western.
Lehigh Valley. Chesapeake and Ohio.
Norfolk and Western and Reading, a
mixed array, which suggested that
traders were well impressed with the
outlook for the carriers as a whole. with.
perhaps. slight leaning toward the coal
lines. The strike has now been under
way long enough to move hardy par
ticipants in the market TO discount a
settlement and a consequent enlarge
ment of rail traffic.
While the rails moved about briskly
there were many industrials in demand.
quite number reaching new high levels
for this year. In fact, the markets
breadth and activity was comparable to
those days in early April. when the pub
lie interest helped the pools in stretching
out the long string Of million share
sessions. Numerous advances of 2 to 3
points were recorded prior to the last
hour of business, but then a stifening of
the call money rate from 31a to 4 and
then to ) per cent. cast a damper on the
advance and slowed trading down per
ceptibly. The banks evidently found it
necessary to make provision for Jun f
corporation disbursements g. advr
Tuesdays holiday and D.
spread the calling Of loans ovc two
instead of Jumping them on Mono
The New York money outlook for the
first half Of June is interesting. Mem
bers of the Reserve system found 1t
necessary to increase their rediscounts
by about $1S,000.000 this week, a move
ment opposite to the tendency Of preced-
ing weeks, and beside income taxes to
be financed in part. payment for third
or more of the last 5000 1000, 900 Offering
of Treasury certificates will be made
through New York.
Purchases of Industrial shares CEN
tered chiefly In automobile, railroad
equipment. oil and copper issues and a
score of specialties which had, been in
active lately. The advance of prices
brought some of them In line with quo
tations of contemporary shares carried
upward In March and April on the basis
of improving earnings. A market feat
ure worth noting was the advance Of
about cent bushel in the later wheat
options, coincident with further decline
of 1 " cents in the May contract. The
spread between May and July wheat has
narrowed to cents a bushel, in contrast
to close to 20 cents three weeks ago.
The great fall of May wheat in the last
week indicates that a speculative situa-
ton, more than the demand for grain
Tor consumption, was instrumental in
the recent price advances. Cotton was
strong. rejecting unfavorable weather
news.