The New York herald., 1922-05-05
FINANCIAL NEWS
AND COMMENT
Stock Prices Generally Unset
tied at Close-I. r. Il.
Bonds Move Up.

The stock market was divided yester-
day into two phases. a strong tone
among oil and public utility issues dur
ing the first three hours OF business
being followed by many quick declines
and generally unsettled price list in
the last two hours. When quotations
were moving up they did so with much
vigor, especially Standard Oil Of New
Jersey. Pacific Oil. Consolidated Gas
and Brooklyn Rapid Transit, while In
terborough Rapid Transit per cent
bonds and s per cent. notes celebrated
gains of between 2 and points. The
latest steps in solving the New York
transit situation supplied the most en-
phatic of the days market inflences
Outside of that factor few events bore
upon stocks. In the rise of prices the
powerful professional efforts Of preced-
ing days OF the week were evident and
the afternoon reaction. which left many
declines of a point and more in its
wake. plainly resulted from profit TAX
ing sales.
Realizing sales also were prominent
in the cotton market although they
did not begin to show their force in
prices until average prices OF future
contracts had been carried to new high
points in the current movement, which
meant. also. that they were higher than
at any time since the big rise of last
autumn. In grain. also, prices gave
way under increased selling. the May
wheat option receding 2A cents a
bushel. Bonds, except fractions. about
held their own. maintaining the steady
position which they have held, in the
main, for more than fortnight. 1t Is
necessary to differentiate between older
issues and the constantly enlarging out
put of new bonds when market tenden-
cies are considered. Whether or not
the heavy flow of new securities has
tended to restrain the others, the fact
has been demontrated daily in nearly
all of this year that investors demand
is vast. A per cent. rate for call
money yesterday. after renewals had
that the reverse movement of funds.
conventional after May payments,
was under way toward this city. That
rate supplies commentary of sort
on the demand for bonds, more COM
prehensive one being in the steady "A
per cent. quotation for collateral time
loans. The bank reports of the next
three or four weeks will be worthy of
study, as agricultural demands are
business needs for credit are to coun-
terbalance the retirement of old loans
before autumn the signs should show
before long.
The Reserve statements of this week
contained yesterday $15,S6S.0 900 increase
of Reserve notes in circulation, the lirsr
expansion in three weeks by the sys-
tenn. Deposits expanded $59.100,000 and a
greater demand. for accommodation was
seen in an increase of $34,000000 in bill
holdings Those changes were accom-
panied by a $6.000.0O0 decline of reserves
and the ratio of cash to deposit and
note liabilities receded 1.6 per cent. In
this district bill holdings rose $1. 400, 600.
deposits increased heavily and circula-
ton gained, carrying the cash ratio
down 4.6 per cent. from the preceding
weeks figure.
The Reserve reports undoubtedly re-
Elected May / needs Of banks. The next
weekly report should throw more light
on the true tendency of spring credit
and currency requirements. The Bank
of England's circulation also increased
largely, f1S4.000. and that and other
changes caused it's reserve ratio to fall
2 per cent. to 1877 per cent. Money
rates in London remain decidedly easy
and the absorption of new investments
there is fully as rapid as 1t is on this
side.