The New York herald., 1922-03-04
FINANCIAL NEWS
AND COMMENT
Irregularity Follows Week
End Evening Up-SterIing,
Francs and Lire Fall.

The markets felt yesterday the effect
OF evening up operations. which were so
pronounced feature OF Friday business
during the rise OF stocks in the 1919
boom, when spectators elected to stand
aside for a few days TO see whether or
not the rising movement would proceed.
But this time irregularity, caused by
realizing sales. was seen in foreign ex-
greater than 1t was in stocks. In fact
those shares OF industrial classification,
which have been conducted upward by
pools. were decidedly strong much of the
time and 1t was mostly among issues
which recently had advanced most that
a real reactionary trend was noted.
Sugar, copper, rubber and several spe-
cialty stocks gained a point to more
than > points. The tone could be de-
scribed more as one of hesitation than
of heaviness. especially noticeable near
the end OF the session.
The stock market would have seemed
satisfactory to traders committed to the
rise IL the other markets had acted bet
ter. A fairly rapid decline. following
rather vague cabled news about another
crisis In the political career of Britain's
Premier, carried sterling sight drafts
back to 4.38ns. a decline of about 4
cents from Thursdays last figure, while
francs and lire receded sharply. Marks.
however. were steady at around .42ss
cent. Political rumors and gossip ap-
peared not to uncover anything new in
these times of constant changes and it
looked as though they had no moro
positive application to the market than
to hasten realizing sales. Wheat fu-
lures passed through a range of to
nearly cents bushel. but when the
fairly heavy selling OF the morning
slowed down prices firmed up and net
declines were quarter to a half cent.
The days most interesting event, per-
haps. was the strength of Liberty bonds
and the fairly firm character of cor
poration issues. The way~that the bond
market received the latel and most re.
markable proposals of the Ways and
Means Committees subcommittee for
financing the proposed soldier bonus
supplied complete measure OF what
the financial community thought of the
chances for an issue of service certifi-
Gates to get legislative approval. But
for the saving sense Of humor there
would have been much evaporation
among bankers yesterday. 1t was real
lied fully that in their effort to beat
the devil around the stump the bonus
sponsors had. in effect, reverted to
great Government bond issue, which
would carry the distinct economic dis
advantage of being financed entirely by
the banks of the country. A proposal
which would entail tying UP more than
81, ,oC0. 100000 OF bank resources for three
years. assuming that the certificates
were made the basis of loans to so per
cent. of their maturity value and the
banks would lend on them. is SO un-
sound and foolish as to warrant disap-
proval in all sensible quarters. If the
bond market had taken seriously the
possibility of so vast a blanket mort
gage on the sources of credit there
probably would have been a heavy fall
OF values.
The Treasury will have plenty to do
in the next three years in refunding
the Victory notes and savings cert!fi-
Gates. and in that task the assistance of
the banks will be necessary. With busl-
ness just beginning to get Its head
above water anything which lays an
unnecessary burden on tho credit mar
ket is not to be countenanced by per-
sons who have regard for economic
causes and effects