The Washington times., 1922-07-03
MARKET COMMENT
Copyright. 1922. by Cosmopolitan News

Copyright, 1922. by Cosmopolitan News
Service)
NEW YORK, July 3.-Perhaps
the most significant feature Of the
financial district during the past
week or so has been the decided de-
crease in stock market activity.
Saturdays sales of about 100000
was the smallest turnover OF halt
session for year or more. The mil
lion share days came to an end
on Wednesday, June 81, and since
that date transactions have been
running between 100000 and 100000
shares daily.
OF course, apathy of the general
public toward the stock market Is
not unusual at this time OF the
year, but the contrast is more ap-
parent because of the heavy rate
of trading which featured the first
six months of 1922. The stock
market is now contending not only
with the midsummer heat, but also
with the uncertainty over the
course of events in the coal and
railroad labor situations. With the
deadlock in the negotiations be-
tween European countries, the un-
easiness over developments In COM
modify price changes, and to a less
er extent the bad effect OF the
Mexican Petroleum incident, Wall
Street leaders are not looking Tor
any great increase in market ac-
tivity during the next few weeks,
at least-that is, unless there
should be an extremely favorable
development in the labor situation
in a very short time.
Despite the handicap imposed up.
on the steel trade by the coal
strike, that industry has been forg-
ing ahead at a remarkable favor
able rate; and latest reports indi-
cate that there has been no am
mutton of orders for steel products.
In fact, the mills are booked up to
such an extent that they can keep
running to capacity for two or
three months to come. Lack OF raw
| material, labor. car supplies ana
fuel is, of course. being felt. but
favorable developments along any
of the lines indicated would result
| in a record breaking steel mill
operation of the plants for this
year.
BY the simple expedient OF drop
ping four ciphers 10000. the Russian
| Soviet regime will establish new
standard of value for its paper
rubles. OF course. this would incur
some Inconvenience TO the holder or
| a 1O.OOO-ruble note, who Will eX-
change il for a note Of the new
series stamped at the value or one
ruble. There is matter or about
twenty-five trillion rubles outstand-
uuires only $4,000 rubles to mail a
| letter from Russia to America. Such
are the problems Of an unbridled An
flation of paper currency.
Todays foreign cables indicate a
substantial position in finance and
| business in London and Paris. High
grade British stocks and prime &C.
curities have been gradually finding
| a higher price level in spite OF the
| many adverse influences which have
been playing on the market. There
is even talk of a further reduction
in the discount rate of the Bank Of
England to 3 per cent, which would
make that the lowest official dis
count rate in the world.
The strength in sterling exchange
during the past week has been ac-
counted for by the increase in the
1
disbursements as well as the influx
of cotton and wheat bills on the
market. The decline of the French
franc has been ascribed to the heavy
purchase of raw materials abroad
and to prospective imports of wheat
| into France. The Berlin market is
apathetic to the decline in the value
| of the mark and does not hesitate
| to predict that It will go still lower.
A significant commentary on the
current records Of the American rail-
roads is the fact that grain traffic in
the West for the first six months of
the year was the largest on record.
with the one exception Of the year
1916. Total receipts of all grain at
terminal markets aggregate 462 .O00.-
| 900 bushels, an increase of 81 900, 900
bushels over'a similar period in 1921,
and of $4,000 bushels, or ID per
cent, in excess Of the average OF the
last five years. In 1916 the total was
sos. 100000 bushels. made az the re-
suit of a record movement in wheat
and oats.
The arrival of corn this year set a
new record, being 214, 900 900 bushels.
compared with 10000, 900 bushels in
1921, when the arrivals were far
above the average.
During the coming year the coun.
try will have an excellent opportunity
to observe the operation of the Fed
eral Reserve system under conditions
as 1t was expected they would be
when the system was legalized. Only
few months after the adoption of
the Federal Reserve act, war broke
out in Europe, and abnormal condi-
tions prevailed throughout the world.
With the close of the war in Novem.
Der, 1918, there was ushered in the
reconstruction period. which, in many
respects. meant much greater
strain on money resources than the
war period had produced. All of the
Federal Reserve banks are now sur.
feited with the funds of their mem.
hat. hanka