The New York herald., 1922-02-16
FINANCIAL NEWS
AND COMMENT
Stocks Gain in Broader Trad,
ing, Call Money Lower, Lib
ertys' Stronger Tone.

Several factors in yesterdays market
setting were favorable to speculation for
the rise OF stocks. In consequence trad
ing broadened to an extent larger than
transactions brought many gains OF
large fractions to more than points
An undoubted assistance in strengthen
ing speculative confidence was a low
rate for call money. standing loans be-
Ing renewed at Az per cent. for the
first time since January 2s. The pres
ence of moderately large offerings of
demand funds in the open market at 3b
per cent. aroused fresh discussion of re-
discount rate prospects at the Reserve
Bank, but no intimation came from re-
sponsible banking quarters that any
change Of the Az per cent. figure would
be made soon. Speculation about pos
sible reduction to per cent. was
furthered by rumors from London that
the Bank Of England's rate might be
| lowered to-day.
The forces of chief Importance In re-
spect to stocks were further sharp
advance of grain future prices In Chi
cago. stiffening of cotton quotations
and the spread of expectations that
pressure for a soldiers bonus law would
begin to lessen in a few days. The last
Liberty bond prices. several advancing
about half point. and in broad and
firm market for corporation bonds. Al
though the financial community was not
altogether confident that the public's
outcry against bonus legislation would
head off action in the Congress. there
was 20 doubt that the atmosphere was
less tense in bank and brokerage circles
than it was last week.
In years past It was usually the habit
OF stocks to advance when grain and
cotton quotations declined, but that
! phenomenon was based on the theory
that falling commodity prices indicated
abundant harvests to come and pros
perity In farming regions through mar
keting great quantities Of produce. The
same hope prevails, as in prewar years,
that the buying power of agricultural
communities will be enlarged this year,
| it to come about is through closing the
gap between what the farmer sells and
the goods that he buys, which, with
| goods prices higher than they were last
May, can be attained only through a
rise of farm product prices. Wheat
futures again established new high
prices for the year. Mays rise to s1.41 y
a bushel making 1t slightly more than
cents above Tuesdays final price and
221a cents higher than it was on
February 1. Yesterdays last quotation
was 21s cents more than Tuesday s
final while corn futures were 2 cents to
ga cents higher than they were on
Tuesday and oats and rye were de-
cidedly strong
The time when the American farm
outlook Will be shaped to an extent
greater than at present by harvest re-
suits In the Argentine is at hand.
Drought is reported to have reduced
wheat and corn prospects in that coun-
try. The situation is interesting in the
effect that it will have on planting
operations in the United States when
open weather shall arrive. At the
present rate of price advances, grain
farmers certainly will have plenty OF
incentive for putting a large acreage to
wheat and corn and this years improve
ment of foreign exchange rates makes
the chances of export sales much more
attractive than they were last spring.
The foreign exchanges were slightly
lower than they were on Tuesday.