The Washington herald., 1922-12-16
STOCKS SCORE RISE
ON POSSIBILITIES OF
HUGH GERMAN LOAN
Copper Securities Lead Ad-
vance; Steel Active on Ru-
NOR of Extra Dividend.
By BROADAN WALL.

NEW YORK, Dec. 15.-More def.
mite reports relative to the posi-
bility Of an international loan to
Germany of $500. .000. 900 dominat-
ed and stimulated the stock market
to higher levels today. AS GERMANY
was a heavy purchaser Of copper
metal from the United States prior
to the war. shares Of copper
Companies naturally assumed prom
inence. Gains in that group ranged
from one to two points with Ameri-
can Smelling and Refining showing
the maximum rise. Speculation in
the coppers was heavier than for
any time in months. The copper
metal market displayed increased
strength and some producers were
reported to be unwilling to sell un-
der 14S cents a pound, which Is
II over the current quotation.
MARKS ADVANCE.
German marks showed an imita-
tion, rising from .012S, the quota
which compares with the recent
low of .01125. Foreign exchange
experts reported a heavy increase
IN speculation in marks. French
francs also advanced despite Pre-
mier Poincare's statement that
France would be unable to pay her
debts before getting reparation from
Germany and that France would
regret having to invade the Ruhr
basin alone II necessary.
Statements by prominent bankers
that no serious consideration had
been given a German loan failed to
chill speculative enthusiasm in the
foreign exchange and security mar
kets. the belief being that a Ger
man loan had at least been the
subject of conversations between
the United States government and
bankers. Strength in foreign ex-
change usually presages European
late prior to formal announcement
the exchange Of the country to re-
ceive the loan. Purchase of ex-
change after formal promulgation
Of a deal would force the bankers
to pay higher rates to obtain the
foreign currency. II actual nego-
tiations for a loan were under way
German marks would have undoubt-
edly had a big rise. Americans
have been heavy spectators in
marks, so that a substantial rise
would mean many millions of dol.
lars to them.
Conflicting statements were made
by bankers as to whether a German
loan could be floated in the United
States. Consensus of opinion was
that II could be done IL reparations
payments and foreign debts were
readjusted. Big investment houses
said II could not be done under
present conditions.
q. s. STEEL.
Second in importance of the mar
ket influences was a revival of the
report that the United States Steel
Corporation contemplated paying
an extra dividend out of the pro-
ceeds of its holdings of Liberty
honds. sharp rise in Steel COM
lfnon OF more than two points to
the highest reached since November
9 last, when it touched HOY, re-
suited. Other steels also shared n
the improvement. interests close
10 the corporation secuted 'he idea
owing to the conservative dividend
policy pursued by the management
and the operating deficits being re-
ported Some of the biggest oper-
atOrs. however. were rnDOrted to
be buying Steel today. These pur-
Chases. however. were believed to
b. covering up distribution in other
directions
Withdrawals Of S6T 900. 900 nv the
government in this district caused
rise in the call money rate from
to . per cent. where it closed
Money rates will undoubtedly be
Kept easy. pending absorption Of the |
latest government loans.
The bond market continued strong.
National banks are appearing as
buyers. Heaviness of Liberty Tomas |
would seem to lend color to the story |
of selling by the Steel Corporation, |
but investigation showed banks and |
trust companies as the chief sellers
in preparation for big allotments Of |
the latest government loans.