Evening star., 1922-12-16
MYSTERY SHR0UDS
.STERL|NG'S RISE
Sensation of Week Hard to
Explain by Experts in
Finance.
By the Associat ted Press.


NEW YORK. December 1s.-Chief in
terest in the financial markets this week
centered on the sensational rise in ster-
ling exchange. demand bills touching
$4.s9h, the highest price reached since
March, 1919, and nearly 13 cents above
last Saturdays closing quotation. A
subsequent reaction sent the price back
to $4.64
While most financial experts agree
that the balancing Of Great Britain's
budget and the steady improvement in
her foreign trade balance make a COM
inevitable: the rapidly Of the recent
rise created great deal Of mystery a.
to how it had been brought about
News dispatches from abroad hinted at
special operations" and rumors we're
current that the upward movement was
ulation in order to facilitate the fund.-
ing and payment Of interest on Britain's
debt to this country. but no official ex-
PLANTATION was forthcoming.
The rise in sterling. which made its
depreciation from par less than per
cent, automatically resulted in Inn
porters paying higher duties on mer-
chandise brought here from Great
Britain. Under the new tariff law,
when the depreciation is more than
I,
currency. for customs purposes shall
be 1.-THE buying rate' in New York Rt
noon on the day of exportation."
which Is determined by the federal
reserve bank. When the depreciation
is less than per cent the valuation is
figured on par basis.
Stocks and Bonds Higher.
Stock and bond prices moved to
slightly higher ground in the weeks
81 fN
which there are extra or stock divi.
dend possibilities received a great
deal of attention. with standard shares
generally showing fewer material
steel shares were active and strong.
in reflection Of the optimistic pros.
poets for the first quarter Of next
year. United States Steel common
touched 10Sh. the highest price in
moro than 4 month.
for Copper at 14A cents q pound.
combined with speculative belief that
the proposed Anaconda Chile merger
would reduce the competition now af-
forded by South American coppers,
stimulated progress Of rising. prices
Definite progress toward two rail-
way mergers was made during the
week. Directors Of the st. Louis and
San Francisco railroad announced
their intention OF acquiring the In
ternational and Great Northern. The
Van Swerening interests were report
ed to have obtained an option on the
majority holdings in the Chesapeake
and Ohio. Carloadings for the week
ending December . showed q decrease
Of 10000 cars below the week be-
fore, which was attributed in part to
the Thanksgiving holiday.
Call Money Plentiful.
Most of the European exchanges
moved to higher ground during the
week in sympathy with the rise In
sterling. Dutch guilders touched par
for the first time in two years and
Swedish kronen duplicated their
previous high. Japanese yen also e..
tabliahed q new top price.
Call money was plentiful most Of
the week. most of the per cent the
ruling rate. The money rates -contin.
ued on Il ~ per cent basis for, the
thirty day maturities and per cent
for the longer periods. although .
few sixty and ninety day loans are
reported to have been negotiated At
AZ per cent. Little new commercial
paper came into the market, although
there was q slight increase in the do
mand. the rate holding at AZ per
cent for the prime names.