The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-20
HITS
H|CH SPOTS ON
WALL STREET
RI stuart p. WEST.

var Street, New York, Feb. 20.
mis- was ona Of the most inter-
.sting and important days, in the
Ss.rious markets. The remarkable
lisa In the foreign exchanges con-
tiuued. In the cast of French
francs this advance assumed an
sren more violent character, carry
M rates for the first time since
ne spring OF 1919 well across the
cent level Sterling also made a
new high, going through the
A3S& top of fortnight ago. An
dher extraordinary upturn oc-
earred In the wheat market, which
ssnt the May options ahead s cents
. 4 bushel. An urgent demand Cor
foreign government secuBities &C.
cornpanied the upward rush Of the
Exchanges. French IS and TVS
vent through all previous tops.
The Immediate result Of these
movements which signify SO much
he business and financial outlook
was the broadcast and strongest
market yet seen in 1922. The street
saw in the continued advance CT
wheat options a. clear conclusions
that the farmers buying power
would come back giving q power
full stimulus to railway traffic and
to trade in general. 1t saw in the
resumption of the rise. in the ex-
: change future promise of re-
yiTal in the American export trade,
although for the exchanges to re-
cover 1t has been necessary for
Europe temporarily to keep its
purchases in the American market
down to the lowest possible figure.
h, The demand for railway issues
was quite as much of a feature as
the demand for industrials, No
doubt much OF the buying of
the non-diyidend paying railways
stocks "eresof a highly specula-
tive character yet it was fully war
ranted in most instances by the
current show of earnings. 1t must
be remembered, however, that the
Developments in the grain trade SO
far as they bear upon railway tom
mage outlook, have a two-fold sig
nifcance. The increase in mer-
chandise traffic which would fol-
low the restoration of normal buy
ing power in the agricultural Sec
ions would to q considerable ex-
tent be offset by the threatened Sc
rious shortage OF the new winter
wheat crop. The most direct re-
ac.ion to the rise in wheat was in
the shares of the companies whose
clientele Is mainly or wholly among
h. esAr
farm implement makers and the
mail order companies. The same
Characteristic noticed all through
the recent market-a disposition to
treat unfavorable earnings reports
as water over the dam-was again
exemplified. Kelly-Springfield had
shown in its 1921 statement a re-
duction OF $1,000, 900 in surplus &C
count due to the losses OF the year.
yet with the unwelcome news out
Of the way the shares of this COM
Nny, along with those OF the 9TH
er rubber and tire concerns, were |
among the leaders in the advances. |
No further light was thrown up
on the foreign exchange movement |
that happened today. The sessen-
tal fact remains that England,
France and Italy have SO reduced
their Indebtedness in current trade
with the United States that these
obligations are offset in the inter-
national balance sheet by items on
the credit side. In the case of
France and Italy the compensating
items are loans Of American money. |
Our money market has so relaxed |
and our gold supply has become so
REDUNDANT that Instead of insisting
as We were year ago, that Europe !
send US gold in ,settl of trade !
debts, We are lending the continen-
2l allies the sums needed to re-
store the equation in the exchanges. |
Railway bonds were quite as con-
spicuous as were the stocks in the |
upward movement Of the day. In |
the share list the advance embraced /
more different issues than in any
Gay for long while In rapid |
succession interest changed from /
The rubber stocks to the low priced
rails from these to the equipment !
stocks, then to various high priced
specialties, easy to bid up because
OF their limited market and family |
% steel common. Oils and coppers
were about the only two groups