Evening star., 1922-06-08
CHEAP MONEY IS
MARKET FACTOR
Call Loans 3 Ia Per Cent.
Sugar Stocks Make Gains.
+ Trade Light.
BY STUART T.. WEST.

NEW YORK, June S.-Still further
reduction in money rates, general
decline in the foreign exchanges.
with particular weakness in French
francs. and quite remark able rise
in the sugar market, We're the three
incidents having the largest bearing
upon the financial situation today.
The call money renewal got down
10 81. rer cent, which WAS the lowest
of the year so far. and the lowest. in
fact, in over four years.
Along with this time money quotations
were shaded and loans for the short
e. period were once more negotiated
at per cent. The return of the
money market to the minimum fig
ures-of the season had its effect upon
the security market.
Liberty bonds pushed forward to
their high prices again. with the
first. third and fourth IA all above
par. The Wall street pools and spec
ulatiSe.r. srnaicateS. encouraged by
the abundance and cheapness of
rather more Gonfdsrce than they
have shown on. preceding days.
Reflects Conditions.
The drop in French exchange. car
rying rates to their more recent low
points. quite evidently was an eN-
presSlon of banking acumep regard
ing the latest developments in Ger
man repa-atioHS and the proposed
international loan.
Ii seems increasingly likely that
:; oanK 4 rouirrerS at tarIS will
adjourn swithuut any action, this,
thanks to the ubstlracy of France and
be- refusal 20 weld an iuta for the
= !, of Sf
of the world. Sterl:ns came down
with the coutInc exchanges. but
in its case the decline was the result
of speculative realizing sales. which
quite we'll might have come about
without anything in the outside news
Rise in Sugar.
The rise in the sugar market
brought prices 10 new high levels for
the yeaT-the refined TO So hundred
pounds. the raw sugar to SO d hun
dred pounds.
l'ni: - an interesting answer to
the campaign Wa"ed by certain prom
insnt r,pr, sentatives of the sugar
trade in an vuGedNCr to make the
r.dblic believe that no Improvement
iced he expected under the present
.flatIon "f demand and supply. 1t is
now past doubling that the turn in
the sugar industry which set in four
months ago was real and last!n :
working off of the enormous unsold
p ':tion of the 1927 crop.
l. was the sugar stocks which
h. oke the monotony of a very dull
forenoon on the stock exchange.
Sugar Stocks.
Buying Of the sugar stocks followed
advances today in raw sugar to =
cents after Wednesdays rise 10 rs
cents and in refined sugar to Sc a
hundred pounds.
Also il was discounting the further
Improvement in prices expected in
trade quarters.
Al present quotations for raw sugar
Punta Allegro is earning at the rate
of about SO per share. but would do
borne Out and sugar prices get up TO
cents a pound later in the year.
In the case of Cuban American
Sugar there is special incentive in
The combination with National Sugar
which is to be made on terms that
are favorable for the stockholders OF
the former. Cuban American is earn
ing in excess of So d share on the
common.
In tine case of American Sugar Re
ining, the essential point is that dur
ing the first three months of 1872
earnings were sufficient to cover a.
per cent of the entire years dividend
on the preferred stock.
Trading Sentiment Mixed.
Professional operators have in many
instances been bearIsh on the market
position for some time. They pointed
cut today that despite the upbidding
of various specialties, the general
price average had been coming down
for five days in succession.
They .dwelt upon the failure 70
sustain a public following and drew
the inference from the slowing down
OF business that the market was
tired" Pool Representatives made
the point that il was easier to get in
dividual stocks up than to push them
down, the conclusion from which was
that the line of least resistance still
lay on the side of advancing prices.
American Smelling,
While American Smelling. and Re
fning earnings are showing an i'm =
lrovtment over those of last year
the big jump in profits rs not *
rected before August when the tull
effect of the reoOening of the mines
will begin to show. Coupled with this
VIII be lowering in costs due to the
reduction in freight rates on sup
plies.
The rorphyry mines got into opera :
ton on Arrll I, but output up to TINS
time has be5n increasing at slow
rate. 1t is expected, however. that
from now on shipments of concen-
tratcs to the smclters will increase
in volume rapidly.
Consolidated Gas.
The announcement that the Consol-
Gated Gas Will retire its bonds this
Year is looked upon as the hrst step
in the reCap pitalization plans of the
company. The company is having re-
leased TO il scme Sl1.o00,000 by the
recent Supreme Court order from
earnings lmpounded with the local
courts These may be the funds
which will lie used in the retirement
cf the bonds. Tho rest of the recap
italization plan. as Wall street gets
it, is that the present stock will be
put on a $40 basis and will be split
Up on a two for one basis.
The new shares are expected to pay
s. in dividends.
Studebaker Higher.
The Studebaker advance seemed to
he a special movement founded upon
expectation of either an increased
dividend or an extra distribution at
the next meeting. Consequently 1t
did not have much effect upon the
rest of the motor group.
AUTO SALES BREAK RECORD.