The New York herald., 1921-06-22
FINANCIAL NEWS
AND COMMENT
Stocks Recover Vigorously and
Bonds Improve-Commodi-
ties Advance.

The stock market turned about yes
terday and scored a sharp and vigorous
recovery. The rise, which amounted to
8 to 4 points in the case of Canadian
Pacific. Great Northern preferred,
Studebaker and United Fruit. and to
more than ? points in broad list Of
shares, liftel the cloud of gloom which
had hovered over the Street for a fort
night. Sentiment improved in proper
ton to the apturn of quotations and at
the end of the day the market following
was inclined to seek for constructive
items in industry and finance. The
flood of disturbing rumors lately heard
in many quarters passed away. the i'm
provement in stocks aided the bond mar
ket and there were concurrent advances
in commodities. wheat futures at Chi
cago gaining 2% to Az cents a bushel
and cotton 10 to 25 points.
The days rally. virtually the first one
of really sizaable extent in seven weeks
did not get under way until a renewal
of bear pressure had established several
evident after the first half hour, how
ever, that resistance to sales was be-
coming more pronounced. and once a new
tendency became apparent a heavy
flow of shot covering purchases was
put through rapidly. Steel common, af-
ter selling as low as 7o1a, rose points
and retained half of the improvement to
the end of .he session. So brisk a rally
as 8 points IN Great Northern preferred,
aided in part by the declaration of the
usual quarterly dividend on Monday,
heartened holders Of rail stocks, and the
rise of Canadian Pacific seemed to in
dicate that The unexplained liquidation
of that Issue, which was factor in
weakening The market on Saturday and
Monday, had come to an end.
1t is hardly possible to draw deduc-
tions from a single days rally, but at
least a reversal of a long continued
movement affords time for consideration
of underlying influences. The situation
of the money market indicates that an
easier tone is present. and promises to
have longer duration than the previous
periodic easements since January l.
The call loan renewal rate was per
cent, the lowest since the first part of
October, 1919, and moderate offerings Of
funds for collateral loans on time were
reported. practically for the first time in
a month, at rates which attracted bor-
rowers. The impression prevailed In
brokerage circles yesterday afternoon
that whatever urgent liquidation had
been called forth by demands on In
dividuals and institutions had been
pretty well cleared away in the drastic
fall of prices on Monday.
A period of normal trading in stocks
| would be especially welcome to invest
ment bankers and to sponsors of many
industrial corporations, whose position Is
not nearly so unfavorable in respect to
current business as Wall Street rumors
have painted it in the last three or four
weeks. The persistent decline of stocks
has acted as brake on the distribution
of new securities, and with money and
credit conditions growing better every
| day an orderly stock market would
| forward new financing, not a little of
which will, according to banking plans.
| be for the purpose of facilitating the
movement of goods.
London was reported buyer of dollar
exchange on a fairly broad scale, the
product of which was another decline of
sterling and heaviness of francs. But
after receding more than "a cents in
New York the sterling rate rallied. leav-
ing off at 3.75. with net decline of q
cents. The foreign exchange market
continues to puzzle bankers, but rather
broad swings are to be looked for until
definite news is had of the future method
of handling the German reparations pay
ments.