The New York herald., 1922-01-14
FINANCIAL NEWS
AND COMMENT
Dividend Paying Stocks Move
Up-Bonds Have BrOadest
Market in Months.

The action OF stocks yesterday indi-
Gated that the ease of money and the
buoyant character OF bond prices stimu-
lated buying of shares OF companies
which displayed ability in 1921 to earn
their dividends. The rise Of a point and
more among such issues as Atchison,
Bethlehem Steel. Baldwin Locomotive,
Standard Oil of California and of New
Jersey, Studebaker and others lent sup
port to the theory that considerable buy
ing was for income. and the upswing of
the dividend payers carried many stocks
along with vigor. A return of per
cent. and more, promised by a great
many preferred and common stocks on
the basis OF current prices and divi-
dends, is widely separated from Az per
cent. commanded by collateral time
loans. and from 3% to 37s per cent dis
count rates on acceptances. It remains
TO be seen whether or not stocks can
vie for any length OF time with bonds in
the present investment field, as the out
look for industry and transportation still
is obscure in many directions. But the
trend of yesterdays dealings disclosed
forces which. with q little incentive in
improved manufacturing, might be re-
flected easily in substantial movement
of q speculative sort. Call money again
stood at 31s per cent. for all loans.
Although old line stocks attracted
greatest attention. there were sufficient
signs of speculative buying elsewhere to
show that the hearish activities of the
first ten days of the new year had run
afoul of a stubborn undertone of quo
tations. Several minor issues of quo
cidedly strong and there was life among
specialties. some of them rising as much
as three points.
The weeks reserve statement, with
its plain evidence of continued defiatiou
of old loans and accumulations OF re-
serve. helped to make the bond market
one Of the most impressive since the
rise OF prices began in August. The list
dealt In on the New York Stock Ex-
change was about the broadest seen In
this period, and bidding for rail- issues.
which seemed to be scarce. carried many
Of them forward point. Industrial
bonds also participated In the rise. bur
there was a not unnatural hesitation
among Liberty bonds. These plainly
had been accumulated In December by
interests which planned to take profits
on the expected rise. and the bulge OF
Thursday hal afforded the desired
opportunity.
None of the markets paid great atten-
ton to the French political situation
outside of a degree of unsteadiness in
French bonds. Foreign exchanges were
flrm. The December foreign trade
figures. showing an increase of S25.50O.-
600 in imports compared with the No
vember total while exports were almost
the same in the two months. was q rea-
son why the exchanges of late had been
steady in the face of occasional disturb
ing events. The December export bal
ance of s59,o0o.0o0 on account Of the
merchandise flow was Offset to the ex-
tent Of more than $4,000. 600 by gold
imports, and seasonal remittances from
this side to Europe must have accounted
for many millions OF dollars, supplying
an additional offset.
Wheat prices advanced yesterday
slightly. but cotton backed and filled
without getting anywhere.