The Washington herald., 1922-04-21
STOCK LIST GROWS
QUIET, FOLLOWING
ACTIVE FIRST HOUR
Steel Common Crosses
Par During Brisk Open
ing Transactions.

first hour that disclosed active bid
ding for stocks at advancing prices.
the stock market quieted down 40
that the total for the Eve hours
showed a falling OF fo= the third
consecutive day. That such was
the case may have been seen from
the fact that OF total transactions
Of approximately 100000 shares.
ever 100000 were completed during
the frat hour. During the strong
phase. however, many new high
records were made and Steel, com
mon, crossed par. Although early
gains were not maintained. prices
as a rule were fractionaily higher
at the close. Strength returned ~
the bond market with nearly all de-
partments registering advances
Call money remained at az per
cent
steel Common st Par.
That long-awaited event. q safe
Of Steel common at par. occurred
during the FIRST few moments OF
trading this morning. II was the
signal fo= a demonstration by the
bulls and for more than an hour
the whole market fairly boiled with
rails. industrials and specialties
v
apparent effort. No one woul' have
suspected from watching the tape
that the directors OF the Federal
Reserve Rank had failed Go reduce
the bank rate yesterday afternoon.
that a widespread strike was in
progress in one Of the country's
essential Industries. that Congress
seems determined 20 pass a measure
which is certain TO have an adverse
effect on business and finance and.
finally, that the statesmen Of Eu-
rope are engaged in an effort TO
avert the more disastrous conse-
quences Of the greatest OF ws-s and
apparently making very little pros-
ress toward their end. In short.
the mornings trading was either
a remarkable example OF the stock
markets ability TO ignore the pres
ent and discount the future or elss
a monumental instance OF the ease
with which some Of the people can
be fooled.
New York Discount Rate.
Failure Of the directors OF the
local Federal Reesrve Hank 60 e
duce the rediscount rate at yes
terday afternoons meeting passed
unnoticed in. the wild activity or
this mornings market Neither did
Il have any effect on loans for
speculative purposes. call money
being in plentiful supply on tn.
board at ga per cent, with some
loans being made in the outside
market at , per cent. Bankers still
maintain that there Is nothing in
sight. except possibly the bonus bill.
to upset the movement OF money
I
One result OF this attitude has been
the transfer of a good deal Of spec
ulative in the bond market in the
expectation that prices for all
grades OF bonds are bound 60 ad-
vance as money rates go down As
a further consequence, tactics IA
miliar enough on the stock side Of
the floor are being used IN bond
trading and some erratic movement
in the price range OF the more spec
ulative bonds is said TO be due TO
this fact
Bankers Acceptssces Lowered
One Of the more interesting de-
ther lowering OF the rate on bank
ers' acceptances- Such paper elig-
ible 70. rediscount at the Federal
Reserve Bank declined another a
OF / per cent TO a 3S bid and az
per cent asked basis. This follows
reductions aggregating half OF
per cent during March. and brings
the open market rate on this form
OF paper nearly IL per cent below
the reserve bank rediscount rate.
An increasing amount OF the best
commercial paper meanwhile was
reported to be changing hands at a.
PEI cent. although a rate OF 4ls per
cent still ruled.
These circumstances draw atten-
ton afresh to the growing cheap
ness OF money. II is probsfle. how
ever, that the slower easing dis
played by commercial paper more
nearly represents the ;undaments'
change in the price Of credit. Re
cent new capital issues. particu-
larly those for foreiEn states and
companies, have made large bal
ances temporarily available in this
market. Such funds naturally find
employment in the aCceptances.
Treasury certificates and call
money markets and so depress the
corresponding rates.