Omaha daily bee., 1922-06-05
Financial
Ebe Mem 16rk umes.
By ALEXANDER DANA MOVES.

OnashA nee Lsssss WIZ
New York. June Am event OF
large Importance in last weeks imam
ciai markets was undoubtedly the rise
OF sterling exchange TO q new high
level for the period. Having prae.
tically reached, $50 in the lace OF
what seemed to have been sales OF
500. .000,000 British gover men
drafts on London TO provide for pay
ment on the debt 10 our treasury.
completion OF these remittanees
naturally makes Wall Street mole
receptive TO discussion OF q possible
return to the normal parity oi S4.Soh
at no very remote date.
Aside from this remarkable move
ment OF exchange, financial markets
have been no more interesting mega.
lively than positively. The great
strength OF investment bond prices.
at a fraction below the seasons
highest. and with all the war loans
simultaneously crossing par. gave
evidence alike OF the continuing res
ervoir OF investment capital. OF the
markets belief in continued easy
money and OF financial indifference
to the congressional performances
with the soldiers bonus bill.
Public Not selling.
On the stock market u Was plain snoush
last week that " tho real Investing pub.
lie was not buying. II was a, any rate
and the army OF spectators. large and
small. their opportunity. The resultant
more or less artificial movement Of prices
did not follow tho news. Neither tho an
wage cut nor the suprsm. courts de-
cision In tho southern Pacific and Read.
ing suits. nor yet the thrse'eompany steel
merger announcement. seemed really 10 ~
t.rss. tho speel,l.,.,o.' with with then them: me
peared to be wholly dependent on the
ease with which manipulators could ''eon.
troll the floating supply.
For tho steel merger" announcement:
the stage had been badly set. With az
the willingness Of Wall street TO accept
the predicted results Of company amalsa-
nation In tho way Of economy and efficiency
the nature Of the protrscted negotiations
has chilled enthusiasm.
A merger from which one company after
another has shown eagernese TO escape.
cannot keep speculative imagination IN .
blaze. On top Of this confederation; tho
questions and answer Of Fridays Lock-
wood committee hearing about the cash
provision for tho purpose OF making .
market" for tho new merger stock. so
that tho insider can upload and the out.
slider load up" was . little too much like
exposing the wires in . mystery show or
turning the light on the conference at
spiritualistio seance.
Expect to "Hh snag."
It was doubtless . reminder OF the 3?s..
o00.000 syndicate fund administered BY
tho ingenious James r. Keane and his
stock market trick box when the new |
United States Steel stock came on the
market in 1901: That exploit was i'm.
mensely successful In exciting tho outside |
so with the infant merger company which |
10 presently to be christened, but the pre-
liminary incidents have not been Of the
kind to help It.
Thus far the negotiations over the Ger
man foreign loan. under the auspices OF
the bankers committee have proceeded so
smoothly and with such seeming cordial
cooperation by all parties to the discus
sion. that II is only natural to look for
what the markets call the hitting Of .
snag" 1t was, however. a foregone con-
clusion that Germany would come 10
terms at the eleventh hour regarding the
May 81 ultimatum and the pending con-
liberation Of . foreign loan gave an easy
opportunity
1t has also been manifest ever since the
collisions Of French and English opinion
It the Genoa conference. that tho French
government would be more disposed than
before to take up in q conciliatory man.
1er the question Of limiting II not reducing
he sum total Of tho German payments.