The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-03
hooks EvINCE
eONFIDENCE IN
BUSINESS BOOM
Nv STUART p. WEST.

- york, Feb. 3.-The stock
80 which started definitely
- on wednesday and contin-
a gain momentum in yester-
!. dealings, showed no signs Of
a. today. A lot of profit tax
ga encountered in the favor
~ the preceding days, az was
,.ral but this was quickly Of
Nv the up-bidding of other
~ which had not heretofore
,roninent. 1t was the famil-
procedure OF a professional
Al where the active in and
raiders are constantly shifting
y one group to another. The
- grounds on which the move
N rested were as on previous
- the confidence of the ultimate
.ssmpfion of business recovery. a
- strong inside market position
m the unwillingness of real
'.,sers to be prompted by such ad-
s.ees as have occurred and the
\ ss.ance OF a considerable interest
IN M on the theory of a Febru-
Ia reaction.
rsrtain high priced issues OF the
- Of American Snuff, Woolworth
"a American Express were built
|ssetacuIarly. The tobaccos were
Is,dically strong. The leading
rsior stocks = Studebaker and
handler into new terri
~ and increase was shown in
tsiivay stocks, especially some of
h, lov-priced non-dividend paying
.sues. The high priced specialties
4, always attractive in a profess
ldonal market, because CT their
uaIl available supply. This makes
n easy to mark up prices without
ksying to absorb much stock. The
]ueyestion of an increased tax on
IJrarets as one Of the sources of
M soldier bonus money, did not de-
IL buying of the tobacco stocks, as
a Is we'll understood that the new
n would be readily passed on to
IA consumer. There was nothing
IA account for the advance in the
I've leading motor stocks beyond
Ias well known facts regarding the
Ixesent business and the earnings
z these two companies. 1t was
|.oteworthy that the buying in
ISudebaker and Chandler Motors
Ia not spread to the other motor
3ccks.
The rail stocks mostly favored
ivse those of roads which have
been making excellent reports for
Lsember. In the case of Missouri
Pacific preferred and Texas and Pa
|dfc there were special reasons.
me expectation of some early dis
|rbution on back dividends ac-
|ranted for the advance in the for
|asr and the possibility of term
|aihon of the receivership explain
|ng the rise in the latter.
The situation on the stock ex-
change was of more Importance
Than any other occurrence in the
financial situation. Sterling ex-
change continued strong as when
Enough time had passed for funds
laeeded in the first month corpora
fon payments to get back to mar
Pet, the money supply increased.
|all rates after starting at So per
|ent came down to five per cent.
EscoVery went further in the wheat
Harket still influenced by the ad-
|Fsace In the exchanges, with all
bat this suggests in the shape of
Itharged European buying power.
! As rule the bond market did
I'1ter, so far as prices were con-
armed, but with business much
mailer than it was a month ago.
ne reaction in favor of more lib
Inl treatment of the New York
hnsit companies continued to
Inow in their securities, more espe-
Iudly in the bonds. Railway mort
5nges moved ahead with railway
RocE. The stock market became
@ewhat more irregular toward
a end of the day, with increased
1lixing IN some quarters, and
iaer less activity in the list as a
mole. Call money was offered at
u per cent in the last half hour,
IL masmuch as the speculative
Hment had not fiinched under
~ per cent rate early in the
sek 1t was equally impassive to
lowering of the call loan quo