The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-01-06
Gall LOANS HIT
| LOW RECORD ON
EXCHANGE FLOOR
BY STUART p. WEST.

copyright, 1922, by The Argus-l
! Wall Street, New York, Jan. g.
roday's most interesting occurrence
vas a further reduction in both
caII and time money rates. There
rave been occasions within the last
month or so when call loans have
been negotiated In the outside mar
ket as low as 81 per cent But to-
day was the first occasion when
this rate was established on the
soor OF the stock exchange. Like
wise it was the first occasion when
time money has broken the per
cent level Loans for 80 and so
days we're reported at AZ per cent
This meant the lowest figure since
the early autumn of 1917 when the
limited States was in the first
stages of its great war financing
which marked the beginning of an
era of imitation so far as this coun-
try was concerned.
IL has long been realized that the
speculative market was not respon-
siye to the money movement as 1t
would be in any ordinary time. It's
main attention is directed to the
business situation and it is only
developments in this quarter that
really count. Therefore the new
low for money rates was received
with apatchy in the stock market of
the day. 1t led to some further ad-
vance in liberty bonds and to an
increased inquiry for the highest
class of railway mortgages from in
yestigating institutions. There was
also a quickening of the demand
for bankers acceptances natural
enough because these are the alter
native form of employment for bank
funds in danger of lying idle in the
money market But on the bosd
market generally the effect was
comparatively slight
During the greater part of the
session stock prices drifted about
with no settled tendency one way
or the other. The professionals did
some short covering which lifted
prices a point or more in the fore
noon, as soon as this demand had
spent itself, the market grew very
dull and prices sagged off again
Special weakness reappeared in the
St Paul and Erie issues while some
Of the public utility stocks were
quite strong. Among them Column
bia Gas, North American and Third
Avenue. The speculation in Third
Avenue is based on the notion that
this company did it's squeezing of
water capital when it was reorgan-
lied in 1910 and would fare well in
any deal for the purchase of the
traction properties by New York
City.
In the commodity markets much
the same uncertainty appeared as
there was in the stock market. In
all probability the cotton specula-
ton is overriding it's show of IN
easiness lest the writing off of
losses at the year end will lead to
some failures in the good trade.
But at all events this was the prin-
cipal influence yesterday and again
today when prices went down.
: Some light was thrown upon the
better tone in the wheat market by
the weekly exports statistics which
showed small increase over the
week before. Still the movements
running far behind that of a year
ago when Europe had not gotten
back, as 1t now has, to a more in
dependent position with regard to
It's food supply. The past weeks
total OF 6,280,00O bushels compared
with 1885, 900 bushels in the same
week last year.
Sterling exchange was stronger
out stlll not up to the Wednesday
ieVei. 1t was altogether a very
stupid day in the stock market with
/. trading dull, and, as rule, little
changed in prices