The New York herald., 1922-03-24
FINANCIAL NEWS
AND COMMENT
Stocks Recede-Marks Fall to
20 1-2 Cent-Reserve Ratio
at New High.

The most interesting financial devel-
ccments yesterday were outside the
stock market but il was evident in the
rather general reaction of prices in sew
eral markets. that a relationship existed
in the influences affecting them. The
fall of German exchange to 29h cent
was a plain reflection of the latest rul-
Never before had the mark been quoted
lower than that figure, and, in addition
10 considerable speculative pressure
against the quotation, it was altogether
probable that sales represented hurried
transfers of funds from German centers
TO outside countries. Cabled news said
taat the program for enforcing an ad-
ditional tax OF o.000. 900, 900 marks
(paper) and possible forced levy on
capital through a loan had had a most
depressing influence on the German
Government, and it was reasonable to
assume that the effect was no less pro-
nounced on Germany's business men and
capitalists. The rate recovered slightly
- VII AeS iOWtSh poIiit. ohHNI lOpCdu
exchanges were somewhat lower than
they were on Wednesday.
A sharp fall of grain prices seemed TO
be connected partly with the easier ten
dency of foreign exchanges, although all
consideration OF this market must
reeds be tempered with knowledge that
| the advance of February and the first
half of March had made prices vulner-
/ able to realizing sales. The wheat op-
| tions fell 2 to Az cents bushel Corn
futures receded ia cents and in cotton
/ heavy selling of March contracts brought
/ fall of nearly is cent a pound net.
1 The adverse manufacturing situation in
New England was mainly accountable
/ fer that retreat, with the exchange posi-
! ton making its influence felt on senti-
nient in respect to export outlook.
4 All things considered, stocks gave a
| better account of themselves than might
have been expected and bonds held up
| well in the face of firmer money
situation. For the first time since
| fixed period loans softened nine days
| ago there was slight edging forward
OF rates. consequently little money was
offered under Az per cent. and most
loans were placed at that figure and
"a per cent Call money for the second
day of this week went to 5ia per cent.
Those rates are by no means unusual
but the stiffening tendency lent en-
phasis to last weeks artificial ease,
caused by accumulations of funds in
New York for income tax payments and
Government transactions.
Stocks ended the day lower in most
cases than they did on Wednesday. but
the large majority of recessions were
fractional and many shares gained
ground. No surprise was attached to
! the fall OF pa points in Northern Pa
/ cific, which it's reduced dividend ex-
! planned, and also the concurrent re-
| action OF ] y points in Great Northern
preferred. Steel stocks were fairly
steady, aided by news that the industry.
represented by the United States Steel
Corporation, had gone to higher level
OF operations this week Sthan Wednes-
days trade reviews indicated. The cor
poration's plants. due to real activity at
one of two centers, are operating at
close 10 20 per cent. of capacity
As is usual a week after a quarterly
tax date the Reserve system showed
strengthened position. Members de-
posits declined no less than Si74. 4.600.000
and. as reserves were about S3,300,00O
Larger than they we're for the week be-
fore and circulation declined more than
81. 200, 900. the ratio of cash to deposit
end note liabilities advanced 2.S per
cent. to 7S.4 per cent, the highest point
since September 81, 1917. That showing
hardly suggested permanently firm
money rates.