The New York herald., 1921-10-11
FINANCIAL NEWS
AND COMMENT
Markets Move Irregularly and
Stocks Close Off-Foreign
Exchanges Improve.


kets were irregular. and. contrary to the
situation during much of September, no
relationship could be found between the
movements. Cotton receded and grains
gained ground Stocks were lower at
the end of the day than they were on
Saturday. and the foreign exchanges
higher. especially sterling. the 7 cent
advance of which last week practically
was duplicated in yesterdays strong
recovery. The extraordinary bulge of
the London rate, which at one time car
ried the sight draft quotation to s.S7A-
the best price since June 2--seemed to
have its explanation in the fact that
purchases to cover short contracts on
both sides Of the ocean found the mar
ket rather bare Of offerings. The
French rate was firm, and most Euro
rean exchanges were steadier than they
were at the end Of last week. but sterling
supplid most Of the market. Usually
this is the season for transfers Of funds
from European centres to New York in
payment for foodstuffs and manufac-
lures, causing decline of the ex-
changes, but unusual stagnation in in
ternational trade, has been complicated
in its effect on the exchanges this year
by Germany's operations in connection
with the war reparations. and 1t looks
as though a large speculative short in
terest exists.
The stock market ignored one really
constructive piece Of news. vested In an
increase Of bookings by the United
States Steel Corporation during Septem-
Der, The expansjon was only 2a,744
tons, but 1t stood as the first reversal
of steady decline since July OF last
year, and occurred in the face OF heavier
shipments of light products than were
made up and delivered in August. 1t Is
too early, of course. to predict that the
u eel trade. as represented by It's largest
unit, will record steadily q growth OF
forward orders through the winter
months. But evidence that bookings are
exceeding shipments. at time when the
latter were known to be larger than
they were IN July and August, certainly
gives support to the belief that the IN
dustry has passed through its most dis
couraging stage of the readjustment
reriod.
Steel common was once fractionaliy
above Saturdays final quotation. put
left off a fraction lower, and other steel
shares were steady Automobile issues
were under pressure all the way along
and of a sort which indicated the ac-
tivities of short sellers. OIL stocks looked
up for an hour or two. then coming
under the onus Of realizing sales. which
were natural enough in the light OF last
weeks recovery. The railroad group
acted as though its followers were
highly confused by reports from WASH
ington of political effort to get freight
rates on agricultural products down.
The desire Of railroad managers to re-
duce rates has been emphasized IN re-
cent weeks. but only with an equivalent
offset in lower wages or In working
agreements which insures an Increased
labor return for money paid. Something
definite about that perpiexing situation
doubtless win come from the meeting
of railway executives late this week.
and In the meantime 1t would not be
surprising II rail shares drifted. Most
OF them declined slightly yesterday.
The heavy reduction of demand de-
posits reported by New York Clearing
House banks on Saturday and the pro-
posed Withdrawals Of $26. 900 Of Treas
ury deposits to-day acted to stiffen the
call loan rate. 1t got up to per cent
in the afternoon. The advance. how
ever, is expected to be temporary. as
some shifting of funds, expected in the
next few days. will slow down after
the middle of the month.
Wheat futures advanced Q cents a
bushei. which may or may not have
reflected the Governments report on
Saturday showing decline Of 100000
bushels in the spring wheat yield. Heavy
hedge selling carried cotton back 1b to
"a points.