The New York herald., 1922-03-01
FINANCIAL NEWS
AND COMMENT.
Stocks Regain Strength, Led
by misunderstanding at
New High Of 43 3-4.

The resumption of the forward move
msnt in stocks yesterday indicated that
speculative endeavor had not been ar
fected by the brief reversal OF prices
on Monday and strength In all finan-
cial markets showed that forces making
for the winters rise had not abated.
The question as to whether or not Sc
curities have advanced further than
business and monetary conditions war
rant Is bound to be raised. but
thus far in the up.urn there has been
succession OF constructive happen
ings at home and abroad which Of
Tered strong support whenever profit
taxing momentarily gained the upper
hand. Not all of these events have
been concrete. The Improvement in the
: fiscal situation of certain European
countries, which undoubtedly has in
huenced the exchanges, can be examined
IN figures in the cases of England. Italy
and Belgium, but respecting some other
nations it is suggested through the
exchanges rather visualized in income
and outgo accounts. England's ability
to eliminate In 1921 the heavy trade
balance against her lin respect to trade
with the United States) was measured
an extensive expansion of exports, but
in the Very meagerness of last years
Interchange of goods lies the market
Kpectation of enlarged trade later The
XQe thought in regard to domestic
X lness evidently has helped to carry
&lStrial stocks upward. Just as rail-
road equipment builders. as disclosed in
recent annual reports. look for en-
forced buying by the carriers this year.
so producers OF other products and
materials believe that reduced supplies
will entail more active production later
Stocks were not as active as they
We're on Monday, but the power of the
advance was disclosed in many gains of
to points among automobile, sugar,
rubber and railroad issues and lesser in
creases in steel, equipment and speciality
shares. The rapid upbidding OF par
ticular stocks Indicated that profess
3 sional cliques were at work with as
much confidence as they were in the
first half of last month. and 1t was
made more evident than before that
such groups believed that money rates
were rot likely to disturb them. The
sturdiest display of prices occurred after
the call loan rate had advanced from
4A per cent. to 5ia per cent. a move
ment evidently attendant on month end
requirements Of corporations.
EtStcTiiHS eNCUdnRe went TO 4.4oA.
new high point. and at that level it was
not clear that any great volume of
bills for sale or short selling orders had
been brought out. dn tho afternoon the
rate eased off somewhat without dis
playing weakness. Francs and lire held
about steady at Mondays closing levels.
and If there was evidence of unsteadi-
ness in them it was not reflected in
foreign government bonds. which were
again bright feature Of an exceedingly
broad and active bond market. s
Railroad stocks as whole were con-
tent to hold abreast of their prices OF
Monday, with the exception of bulges In
Missouri Pacific common and preferred
Lehigh Valley and three or four others.
Seemingly the market elected to study
January income accounts further be-
fore carrying the recent movement on
ward. Several of those statements have
been rather indifferent in regard to net
income comparisons with those OF a year
before, but not so with the Pennsyl-
vania.vrwlicir converted declinv Of
sz395.0cO in gross into an increase Of
nearly s5,0oo.000 in net from operations
The Union Pacifics increase of $1.541.-
600 in net stood out sharply against a
deficit OF s20Ion0 in 1921.
Cotton recovered briskly from an
early fall. ending 2 to 10 points higher
Grain prices we're inclined to ease off.