The New York herald., 1921-10-12
FINANCIAL NEWS
AND COMMENT
Stock Market Swings Up and
Down, Leaving Oils at
Higher Levels.

On the eve Of the holiday yesterdays
markets were evidently shaped In large
part by the desire OF spectators to
close out some Of their commitments
The product was a series Of UP and
shares higher than they were on Mon
day. at the same time that cotton left
off with comparatively little change
and wheat futures advanced 35a to Az
cents a bushel. Speculation in petro-
leum shares has gained impetus since
crude oil quotations began to advance
a fortnight ago. Inasmuch as q promi-
nent producer has raised the price Of
gasolene It seems that both crude and
refined oil are reflecting strengthened
statistical position Of supplies. due to
reduced production during the last ten
months. But It is not clear yet that
that industry will be unaffected by
periodic alterations of demand and
prices. The example OF steel indicates
that the markets outlook is decidedly
uneven. This weeks trade reports
show that the squirt in purchases Of
plates and other light material last
month was not followed in heavy lines.
and In the latter concessions in quoted
prices are being discussed.
United States steel stood practically
alone with steady front. shares Of
independent companies presumably be-
Ing depressed by the Lackawanna Steel
company's quarterly statement. 1t
showed a deficit Of moro than $1.20o.-
900. which was 100000 larger than 1t
was in the June quarter, and suggested
that, although it's business may have
been better in September than it was
in July, the margin Of profit was too
small to offset the undoubted eubstan-
tial loss from operations during July
and August. Although the Lacka-
wanna's statement urged forth pressure
against the shares, the news should
have surprised nobody. Steel min over
heads run high when operations fall
far below a capacity rate. and it had
long been a foregone conclusion that
few manufacturers Of steel would show
anything besides loss in the third
quarter.
A reduction Of grain exports in Sep
tember evidently had much to do with
the decline Of the outflow of merchan-
disc from American ports during that
month. according to the report of the
Department Of Commerce. The total Of
1925, 100000 was nearly $47.000.000 less
than It was in August. and, with the
exception Of July's total. was the small
est monthly movement Of this year. I'm
ports also, to value of S1S0.000.00o.
were s14,70o,0o0 smaller than they were
IN August. The contraction of the ex-
port flow raises the question whether or
not the condition Of September is not
still prevailing and finding reflection in
The foreign exchanges. The supply Of
bills certainly has receded in the last
three weeks. and even while there was
a natural setback in sterling yesterday
morning-the rate had advanced some
1o cents in a little moro than a week.
the quotation quickly snapped back to
slight net advance.
Call money was at per cent through
out yesterday. The upward course Of
bonds was checked, Liberty issues being
in supply from the start OF trading
The known plans of investment bankers.
however, indicate a belief that the
market has interested absorptive pow
ers, which hardly presuppose a perma-
nent tightening Of money rates.