The Washington herald., 1922-06-03
PRICES GENERALLY
STRONGM ACTIVE
STOCK EXCHANGE
Oils and Motors Gain,
While Steels Are Unaf-
fected by Merger.

NEW YORK June 2.-TradIng In
stocks was on a more active basis
today. and prices were generally
firm. The effect OF the announce
ment Of the new three-compau
steel merger was something Of a
oisappointment, as far as the price
movement of the component stocks
was concerned. but Steel Common
advanced strongly and touched a
new high for the movement Of los.
Its behavior no doubt reflected in
part the testimony OF representa-
tives Of both the Steel, Corporations
and the Important manufacturers,
that the corporation enjoys a differ
ential Of about SO a ton as COM
pared with the Independents in the
cost Of producing steel. Oils and
motors were actively taken at high
er prices. while rails were neglected.
Call money, after opening at S per
cent, was reduced to 4h at noon.
Bonds were little changed.
Call Money Higher.
In spite OF the renewal Of the
call money rate at per cent. stocks
were generally higher at the open-
ing this morning. and the early
quotations were maintained during
the forenoon and in some cases bet-
tered. The Increase Of half a point
In the reserve ratio OF the Federal
Reserve banks had a reassurinR e.
feet. and was interpreted as an in
oication that the recent advance in
call money rates was merely Tn.
effect OF temporary conditions in.
cident to the usual first Of the
month disbursements The loysr-
ing OF the call money rate 20 az
per cent about noon confirmed this
judgment. Motor and oil stocks
were the market leaders during the
morning hours. the rails being dun
ana the general Industrial list not
particularly active. Price changes
in the latter groups. however. were
toward higher levels. but in most
cases fluctuations were confined to
fractions.
Motor Active,
There was great activity IN nearly
all the motor issues during the
morning. and substantial price ad-
vances were the rule Studebaker
was again the market leader. es-
tablishing a new high for the year
early in the day. President Ers-
kine's review Of the compa nys busi-
ness for May. which broke ali rec
ords both as 70 production and sales
OF cars and as to money actually
received, were accepted as indicat-
fn0 that T.
an extra disbursement is now as
sured for the common stock boId-'
ers this year. and some lively bid
ding for the stock followed.
General Motors.
General Motors moved Up with
studebaker. equallinE its high price
I for the year shortly before noon.
While there was no special informa-
/ ton 70 cause buying Of this issue.
IL IL generally known that nros-
perity In the automobile INDUSTRY
IL not by any means confined to
Studebsker. and that all the estab-
lished companies are getting a good
share Of the business. For this
reason traders figured that when the
report Of General Motors opera
tions for May is published "a will
be OF nature 20 suggest TT the
resumption Of dividends on the
common stocks Is probable during
the current year. Chandler and
Pierce Arrow also advanced on the
general hullish sentiment regard
ing the motors.
In spite Of the statistical posi-
tion Of the industry which shows
stocks at record figures. many of
/ the oil shares continued their ad-
vance Of the past few days. Texas
OIL was especially strong. This is-
sue has not shared 20 any extent in
| the general advance in the oil
stocks for the reason. Il Is rener-
+ ally believed. that several substan-
. tial blocks Of the stock have Necn
. hanging over the market IN connNc-
/ tion with the liquidation ~ estates
Wall Street believes that this sell
Z ing has now been completed and
that a source of supply for the stock
: is consequently exhausted.