The Washington herald., 1922-06-23
''MEXPETE' AGAIN
GAINS IN ERRATIC
STOCK EXCHANGE
Industrials Are Weak,
But Rails Stage Late
Advances.

NEW YORK June aa.-As Tar as
todays trading was concerned. the
reduction in the reserve banks re-
discount rate proved q greater aid
TO the bond market than 20 that for
stocks. In the former department
the one was nrmer than in some
time, four Of the Liberties making
new highs and the railroad issues
also showing marked strength
Among the stocks, marked irreg-
ularity existed The opening was
steady though quiet. but weakness
developed in a number OF Indus
trials before trading had gone far.
Later in the day the rails rallied.
several showing gains OF about I
point. Mexican Petroleum contin-
ued TO jump. touching 1ss. which 10
IL points above the previous close.
Sales failed 10 reach the million
mark. Call money opened at az
per cent and was raised 20 dur
ing the noon hour. and 20 80 dur
ing the last hour. While no new
low figures were established in the
commercial paper market a great
er supply of funds was offered fat
the lower quotations prevailing re-
Gently. and per cent may be
taken as the ruling rate IN bes'
paper.
Market Movements Easy.
The most noticeable characterize
tic Of this mornings stock market
seemed to be the ease with which
prices could be either advanced or
put down. Both operations were
tried by the professional element in
several different issues, and in
every case a substantial movement
was the result OF transactions to-
falling only a few thousand shares.
When the influence OF transactions
between the professionals essed in
any issue. however. the result was
duIlness followed by a gradual
working Of the stock back 20 its
former level. There seemed 70 be
the absolute minimum OF psrtici-
patton by outsiders.
Independent steels.
The independent steel issues were
the first group which was used 20
test out the market this morning.
and both those involved in the two
merger schemes and the stocks OF
/ the companies which are still IN
| intangied like Crucible and Nans-
dunn were moved up 2 points with
great ease. But keeping them there
was another matter. as traders
found when they suspended their
efforts in hopes that enough mo-
mentum had been gathered 10 carry
prices higher. Before noon prsc-
tically all these stocks were selling
just about where they were when
the move began.
England Ratio.
A further slight increase in the
reserve ratio Of the Bank OF Eng
lanl brings that figure up 20 prsc-
ticSlly 20 per cent This repre-
ser.ts a new high for approximate
~ two years. The latest gain Is
due to a decrease Of fBs5.oOO ster-
ling in note circulation. which has
more than Offset an increase OF
e. 600. 900 in deposit liabilities 1t
continues to be abundantly clear
that the modest Improvement in
British trade is making no appre-
ciable demands on the money mar
ket A similar condition on this
side Of the water goes far toward
explaining the reduction IN the New
York Federal Reserve Bank dis
count rate. The latter IL quite jus
tified by market condition. and the
principal objections 70 making a
reduction at this time have been
fears lest a bonus bill might lead
to a renewal of imitation and
belief that once reduced the rate
might be lifted only with dificulty
IL conditions indicated the necessity
of such a step.