Confidence Shown by Rise in Stocks and Trade
Special to The Washington Fest reports a week of stock gains, high bonds, and low money rates signaling a potential bull market amid stronger bank earnings. Cu...
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Newspaper
Washington Post
Location
Washington, Washington Dc, United States of America
Date
Mar 20, 1922
Page
3
Special to The Washington Fest reports a week of stock gains, high bonds, and low money rates signaling a potential bull market amid stronger bank earnings. Cu...
London’s stock market was volatile last week amid political uncertainty and tax collector and engineer strikes. Gains came from Gen Smuts quelling the Rand insurrection and reassuring India news, while overall activity remained irregular and subdued.
Berlin dispatch notes dollar rate rising amid continued foreign currency purchases by industry. Rate reached 286 marks, expected to top 300 as credit tightness hampers bourse activity. Steels textiles and coal mines seen to rise. Halle Machine Factory Foundry declares 7.314% dividends for 1921 with 6 million mark capital. Major banks like Discount Co announce capital increase of 210 million marks.
Wide importance cases will be heard this week in the Supreme Court. The United Mine Workers of America and others press the Sherman act issue against Coronado Coal Company, with appeals over whether labor acts can restraint interstate commerce. Prohibition penalties and Volstead act provisions also loom as the court may decide on double tax and penalties.
Paris dispatch reports the Bank of France reducing the official rediscount rate to 6 percent. The move was met with widespread satisfaction among French traders and financial officials seeking stabilization and liquidity.
French finance officials warn that high interest on advances on rentes and other securities risks burdening investors. Intermediary commissions and costs leave rentes yielding only six percent, despite total costs around six thirty four per cent. A decree to control capital outflows may be renewed, allowing foreign and domestic securities to move if proceeds fund other securities.
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