The New York herald., 1922-01-13
FINANCIAL NEWS
AND COMMENT
Stocks Generally Firmer in
Last HOur-Corporation
Bonds Make Gains.

IL was not unti tne last hour or DuSi-
ness that the stock market established
yesterday consistent price tone, wide
variations OF changes being recorded in
the morning. The final hour saw a
generally flrming up tendency. most evil
dent among Industrial specialties and
several preferred issues which lately
have been inactive. Trading was almost
exclusively in the hands of professional
headway on the short side was difficult
to make and SO bid their favorites up-
ward. The session brought forward few
DEVELOPMENTS Of interest and It could not
be seen that any influence Of economic
value was behind the fluctuations.
In bonds the picture was quite differ
ent, although Liberty issues were marked
by less snap than they were in wednes-
days smart recovery. The Victory 4%s
reached a new high level at 10000 and
the S%s also topped their previous best
price in a rise to 100.26. but the Az
Liberty issues were a trifie soft. The
feature of transactions lay In CORPORA
ton bonds, with gains running from
quarter to a half point in numerous
rails and many industrials. The stiffen-
Ing Of prices was an obvious product Of
easy money, but this weeks improve
ment of rail bonds has attracted much
attention because in their rise of Novem-
Der and December their yields were car
ried downward to an average level which
seemed to some investment specialists
to have discounted greater monetary
week. 1t is probable that the accumula-
ton Of money In the banks and the llqui-
dation Of old loans subsequent to jan
uary were moro rapid than had been
expected and bonds yesterday reflected
the money market alteration.
News of the resignation of Premier
BRAND caused a momentary dip In
French s per cent. bonds and French
exchange drew back, but the former
recovered under moderate buying. In
the absence Of details of the fall of the
French Ministry the markets were in
clined TO move cautiously after the news
was received. The Street was anxious
for information about the relationship
between the event in Paris and the
Cannes Conference, but this, as well
as plans for German reparations pay
ments this month, held over to another
day. Most European exchange rates
left off lower than they did on We'd
nesday. French francs being fully 23
points down.
A sharp contraction of loans and de-
posits and a substantial gain in re-
serves caused the Reserve systems
ratio of cash to note and deposit liza
covery of SO per cent. in the last
week. The ratio Of TAT per cent. was
the highest since the week OF September
2S, 1917. Liquidation OF loans on q
large scale. a gain Of about s50,000,0 900
In gold reserve and contraction to the
extent OF s37.000.0o0 in outstand-
ing Reserve notes aided the New
York Bank to report rise of 7.6
per cent. in its reserve ratio. and the
proportion OF gold to circulating notes,
after making allowance for legal re-
serves against deposits. reached the
amazing total OF STAG for every dollar
OF notes. The weekly statements showed
clearly enough why money rates had
fallen, this week. A counterpart was
found in the Bank Of England's report,
which displayed an advance of per
cent In reserve ratio. resultant from
heavy paying off Of loans.