The New York herald., 1922-04-11
FINANCIAL NEWS
AND COMMENT
Stock and Bond Markets
Active-Steel Near Par
Exchanges Gain.

Premier in the Genoa conference that
Russian Soviet ideals must be held SUBJ
ordinate to allied economic plans un-
in European exchanges and may have
assisted speculation for the rise OF se-
curlties. although 1t was plain that
domestic developments were potent in
keeping stocks moving upward with the
same great force that they did last
week. Another session in which the
turnover ran close to 1,45o,o00 shares
saw trading interest concentrated
largely in steel, railroad equipment and
investment railroad stocks. led by a
powerful forward thrust of United States
Steel to s91a. the first time that its par
had been so closely approached since the
second half OF 1920. Sterling exchange.
following a strong trend Of business in
London, advanced more than a cent In
New York and at its best quotation was
hack to the level Of March 2. Marks
were firm. In connection with the pos
sibilities of international events Of favor
able import to come from the Genoa
meeting it was worth noting that the
Czecho-Slovakian 8 per cent. bonds. sold
to the public last week at s6h. ad-
vanced to s9L.
The financial business day was
marked by an unusually interesting
against the background of the many
favorable items of the last three
months. Due apparently to very heavy
buying by railroad equipment manufac-
turers and railway companies in the last
week OF tho month, the United States
Steel Corporation was able to report an
increase Of more than 900 tons in its
March bookings. In that record the
optimistic reports which have come from
production centers were completely af-
firmed. AS the corporations operations
went from around so per cent. to more
than 20 per cent. Of capacity in March, It
is evident that inflowing bookings were
very much heavier than those of F'ebru-
ary, in which a net decline occurred.
Assuming that the average plant oper-
ations were around sc per cent. of
capacity, it can be estimated that the
new orders were well in excess of
100000 tons. That pace IS believed to
have been maintained into April. and. as
April prices are higher than those Of
March for q fairly broad list Of
products, tho second quarter holds out
hopessj prospects for enlarged steel COM
pany profits. The March increase Of
orders was the largest since May. 1920.
The money market supplied basic in
formation of direct bearing on stocks
and a more specific relation to bonds.
The supply of funds to lend for fixed
periods, secured by collateral, was In
larger supply than 1t was last week and
rates for the several dates were quoted
at AZ per cent, eliminating the spread
between that quotation and ~ per cent.
which had existed since March u. At
the same time first grade commercial
paper eased slightly to 4 III per cent. AS
call loans were negotiated at the same
figure, It was clear that the combina-
ton Of an intensely active stock market
and a buoyant bond market had had
no effect whatever on rates. The clos
ing of subscription books for $13.0o0.0o0
Of the city of Rio de Janeiro's per
cent. Immediately after they were
opened bore eloquent testimony to the
state of bond demand. Junior railroad
bonds held the center Of the stage on
the New York Stock Exchange. AT the
rate many Of these have been advancing
OF late It will not be long before q "a
to 8 per cent. yield will be rare among
all classes of rail bonds.
Stocks were subjected to heavy reaiiz-
ing sales in the last hour. but the price
tone held up stubbornly against tne
flow. Grain prices advanced put oe.,er