The New York herald., 1922-07-14
FINANCIAL NEWS
AND COMMENT
Oils Lead Recession Of Stock
Prices-Several Factors
Depress Market.

With the exception Of another reduc-
rate OF discount-the fourth cut of this
year--the financial and commodity mar
kets had little constructive information
to contemplate yesterday and there was
some which was construed as unsettling.
The refusal of railroad managers to ac-
cept the plan proposed for composing
differences with the striking shop men
practically returned the railway situa-
tion to what 1t was earlier in the week;
namely, tangle of conflicting state
ments from both sides as to the strikes
effect Market hopes of an early settle
ment OF strike troubles. therefore. were
deferred. and. being postponed, were
converted more or less into doubt about
the immediate movement of stocks.
The share list fuctuated within mar
row limits during the morning, the slant
being toward somewhat lower levels
than the day before, and when the Fed
eral Trade Commissions criticism of oil
company relations was made public In
the afternoon fairly sharp recessions
occurred. These were more extensive
among Standard OIL Issues than in other
departments. although all varieties of
petroleum stocks weakened and de-
clines of point to two points were
pretty widely distributed at the end of
the day.
! The Trade Commission evidently holds
the original Standard OIL breakup COM
munities of interest have been resur-
rected among some of the companies
which preclude competition of the COM
pletely unrestricted sort. But just why
condemnation of interlocking stock con-
troll should have uncovered SO many
bears on share prices. as it did. was by
no means plain. The effect of un-
scrambling industrial combinations, when
found necessary in the past, has been
! profitable to holders of participating
shares.
Interest attached to the new per
cent. discount rate of the Bank of Eng
land was centered less in the event than
in the possible reaction of the decline on
the Federal Reserve Bank In New York.
AS call loans have been negotiated for q
long time between / and per cent. In
London and Treasury and commercial
bills have commanded about per cent.
there was no surprising feature In the
banks action. Money has been less re-
laxed on this side than in London.
This weeks Federal Reserve state
ment, however, shows that the expansion
of more than SS2,000.00 which occurred
on loans between the last rediscount
rate cut on June Is and July ceased
after the latter date. Rediscounts last
week declined s6S.000, 900. gold reserves
Increased SIS, 100000 and circulating
reserve notes declined $50, 900 in
volume as compared with the week be-
| fore.
The firm tone OF collateral time loans
early this week, short dated accommoda-
tion requiring Az to 41a per cent. for q
/, day or two. appeared to disclose a rather
| firm position OF money. But whether OF
not the Federal Reserve officials fee
moved to make the rate In New York
\ lower than per cent. the bond market
yesterday evidently thought they could
! do 1t IL they desired. Liberty 31a per
| cents. went to q new high point for this
! year and firmness with a good demand
marked dealings in railroad paper. Cal
money went to per cent. in the after
] noon.
Car loadings In the week Of July
were $50 cars less than the week be-
fore, a reversal OF the previous trenc
that was not accounted for by the strike
A fall of 2,212 in coal car loadings ac
counted for 1t.
The foreign exchanges eased or
slightly. Cotton and wheat both dis
played much strength, economic influ
ences comprised In weather conditions
affecting the markets.