The New York herald., 1922-03-25
FINANCIAL NEWS
AND COMMENT
Steel Price Advances Impart
Strength to Stocks-Call
Rate Eases.

News from steel making centers that
Price advances of $3.50 to SO a ton had
been put into effect throughout the trade
generally supplied yesterday excellent in
formation for spectators In steel COM
pany stocks. and n demonstration of
strength in that department went far to
offset weakness elsewhere. The steel
situation was practically the only thing
Up for discussion, as the market wholly
ignored the passage OF the bonus bill by
the House and found nothing of M
ment In money, exchange and com
modify markets. Steel stocks advanced
y to more than 3 points automobile,
coal. public utility and railroad equip
ment issues went forward with consld-
cradle vigor In the afternoon and sew
eral lower priced rail shares we're firm.
| The supply of call money was larger
than 1t was on Wednesday and Thurs
day and its rate. after renewals were
made at Az per cent. eased to Az per
| cent.
! 1t Is evident now that initial steel
price increases of ten days ago met
more favoN.ble reception from buyers
| than seemcs probable at that time, and
yet It may e1 said that. on a statistical
basis, recovo7.es from this years lowest
levels were not surprising. The COM
petitive conditions. which developed
fourteen months ago. carried quotations
down to point only Is per cent more
| than the average price in 1913, while
the great depression Of 1921 left many
other commodities 80 to 40 per cent.
higher than they were in the pre-war
year. The United States Steel Corpora
tons mills have advanced operations
to 20 per cent. of capacity and inde-
pendent concerns have made long strides
forward In the last fortnight. Provided
that the new quotations allow profit
with mills working less than three-quar-
I ters full, fairly satisfactory earnings
may be looked for In the second quarter.
Known plans for railroad purchases of
rolling stock and building material and
eniarging operations in fabricating lines
forecast more active steel production In
the next three months.
| The Liberty bond market would have
reflected genuine fears of a bonus law
/. such fears of enactment of the
measure existed. but its prices fluctu-
ated narrowly. Swiss Government and
municipal bonds were included In a
group OF foreign Issues which reached
or surpassed former maximum levels
er.d the bond list as a whole worked
higher. That movement clearly indi-
Gated lack of apprehension lest money
rates might continue much further this
weeks slightly firmer tendency. The
excellent Reserve statement on Thurs
day showed that the trend was toward
relaxation. In another fortnight, 1t Is
possible. the effect of spring agricul-
tural demands will be noted. but the
deflation OF old loans is likely to check
the effect on rates of new obligations.
The foreign exchanges did very little,
sterling closing practically at their quo
tations of Thursday. Marks recovered
TO .30s cent, a movement so small as TO
record no alterations Of sentiment In
respect to the reparations outlook. The
German rate win take on new phases
of interest when the process of checking
the Reichsbank currency issue gets un-
der way.
Wheat prices advanced II cent TO q
cent bushel. aided by short covering
an the heels of Thursdays sharp re-
actlon. Cotton fluctuated simlessly.