The Birmingham age-herald., 1924-01-14
STOCK MART HAS VERY ACTIVE WEEK.
Ease In Money And Reinvest- ment Demand For Securi-
 ties Contributing Factors

NEW YORK, Jam 13.-(By the As- sociated Press.)-Prenounced ease in
 money and a vigorous reinvestment demand for securities were the chief points of interest in business and financial circles during the past week. The developments were the more prominent because trade was in the period of post-holiday quiet- ness and industrial news was in- conclusive.
 Relaxation in the money market brought the call rate on the New York. Stock exchange down to 5 S-4 per cent and resulted in time money
 and commercial paper lending as low
 as s-l per cent in that center. These rates were not firmly estab- lished. but loans were made at this figure and borrowers refused to pay more. Call money was cheaper than at any time since September 20, ana the time and commercial paper rates were lower than at any time since
 the early weeks of last year. While the immediate cause of the decline in the price of money is the passing of the special demands which arise from holiday trade and year
 end settlements, 1t is clear that two other fundamental factors have been
 at work. One is the gradual slacken- ing in business activity which has taken place since last spring. The other is the heavy and con-
 tinued influx of foreign gold.
 A reflection of the changes is found | in current statements of the federal reserve banks. Both the volume of credits extended to the country by these banks and the total of their notes in circulation are distinctly lower than a year ago. On the other hand, their reserves are materially greater, despite the fact that the banks have forced considerable
 amount of gold into circulation: 0 o O
 Bond Market Influence.
 A measure of the volume of funds made available for investment by the interest in the dividend payments of January 1 was furnished by an ex- ceedingly active, broad and strong | bond market. All kinds of subscrip- tions shared the advance, but the sharpest gains occurred among the
 junior obligations of the smaller railroads.
 Further weakness developed in' for ] e1gn eXchange ana LOn0On reported further buying of American securi-
 ties for foreign account. French francs sagged to a new low of about
 2-3 cents. The French government
 announced its intention of curbing | speculation in the franc and the
 Bank of France raised its discount
 rate from to 1-2 per cent; but these measures proved of no imme-
 diate benefit. Sterling also was
 weak. The currencies of the former
 neutral countries were firm, however.
 The commodities market was quiet.
 Grain prices held steady, but cotton
 reacted under moderate pressure of
 scattered liquidation by the tired
 longs and of southern selling. There
 was no change in the statistical posi- 1 tipn; there action was due simply to
 stacker trade interest, which is nat | ural at this season, and to political
 uncertainties abroad. Both of these
 influences tended to produce quiet
 spot market and so to curb specuia- i tive activity.
 News from the steel industry was encouraging. The United States Steel corporations thrilled orders in- | creased snearly 77,000 tons during De-
 cember. this terminating a series of
 eight monthly declines. Bookings dur
 ing the first week of January were
 good and rolling mills are expected
 to operate at a satisfactory rate dur i ing the first quarter at least. l Prices continued firm.