The New York herald., 1922-03-16
FINANCIAL NEWS
AND COMMENT
Stocks Recover After Great
Northern Dividend Action
and Close Irregular.

One OF those unexpected and dra-
matte incidents which have Jared the
bull markets OF past years came yestcr-
ern Railways directors to postpone divi-
dend action until June. and traders
committed to the fall OF stocks made
the most of IT, The precipitate declines
OF around 4 points in Great Northern
and Northern Pacific which followed
the news caused many recessions Of a
point to 3 points from the days best
prices--the most extensive reaction Of
the last month But support quickly
came from new buyers. and before the
close recoveries were sufficient TO mark
the final price list as no more than
irregular. The market turned imme-
diately when il was seen that The Great
northern situation was not all that 1t
had seemed at first. The fact that the
roads income from operations was by
no means covering dividends has long
been known. The last dividend was
made possible through a draft on the
Burlington's earnings, and the manage
ment made 1t clear that three months
delay might show a traffic situation
different from the present one and war
rant semi-annual dividend at the long
maintained annual rate Of Z per cent.
The dividend, however. was left in ques
Y. The road evidently does not in
to lean heavily on it's Burlington
Le,.. and as the same intention could
be ascribed to the Northern Pacific
management It was not surprising that
both stocks left off points and more
under Tuesdays rinal quotations.
Stocks were swinging along with con-
siderable power before the Great North
ern directors meeting. new high records
for New York Central, American Can.
American Ice and several specialties
overcoming the effect of heavy realizing
sales in several industrial issues on
trading sentiment. The money situation
was altogether favorable to the rise of
stocks and bonds, a az per cent. call
loan rate on an income tax payment
date indicating presence of unusually
large supplies of funds and forecasting
a relaxed condition until the Treasury
begins to draw down its temporarily in
creased balances in New York. Mining
company stocks were helped forward by
reports of large export sales of copper.
The weekly steel trade reviews showed
that competition for business has been
of late more beneficial to mill schedules
OF Independent producers than to the
United States Steel Corporation, as
average operations OF all plants was
estimated by the Iron Age as So to so per
cent, with the corporations at around
60 per cent The average a fortnight
ago was approximately - per cent.
and the largest unit OF the Industry was
then at its present rate. Activity has
to be greater than those figures show
for sizable profits to be made. and steel
shares made no response to the news.
Wide and nervous changes again oc-
Cured in sterling exchange. its morning
rate going rapidly from 4.321a to 4.35
and then as rapidly losing all the inn
provement. Speculation and offerings
Of large trade bills. previously held
back, has so disturbed exchanges this
week that II looks as though consider
able time would elapse before they
reach degree Of stability again. The
February report on United States COM
merce was Of character ultimately to
stiffen leading exchanges. "A $4,000
900 reduction OF exports. compared with
those Of January. and a practically sta
tionary position of imports at $217. .00O.-
COO brought an excess Of only $34. 900. 900
of exports, the smallest OF any month
since 1914. Although $2S,700,000 in
gold imports was the smallest OF any
month in a year, the net import gold
balance OF close to s27.000.000 came
close to offsetting the export surplus in
merchandise movements.