The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-01-28
FINANCIAL NEWS
AND COMMENT
Sterling Exchange Continues
to Advance-StOcks Are
Firmer in Tone.

While the character of the stock and
foreign exchange markets yesterday was
about the same as on the day before,
price movements were more interesting.
This was especially true OF the ex-
changes. Sterling babe fair during the
morning TO absorb most of the business
put through. and, while there were brief
periods OF reaction. the tone was de-
cldedly strong all the way along and
the net advance of ~ cents TO the pound
saw the sight rate "a cents higher than
on Monday morning. II was obvious in
banking comment that while some OF
| the factors behind the persistent prog
ress OF the London quotation were recog-
nlzed, many others were not and could
not be defined. Cabled messages from
British banks showed that offerings on
that side were being taken more rapidly
than IN New York. and in both the Lon
don and New York markets scarcity
of commercial bills was reported. This
! fact caused renewed study OF the Deem
Der foreign trade figures the details OF
which were made public yesterday.
Shipments from American ports Of cot
ton and major food materials were not
materially greater than in November.
but exports OF steel products advanced
to $4,000, 900, the greatest monthly
total on record. This exhibit raises the
question whether substantial part of
the December outgo did not comprise the
hurried completion OF old contracts be-
fore the end of 1920, contracts which
The collateral question Is whether or
not the unexpected expansion of S43.-
10000 In exports during December re-
suited chiefly from this process Of clear
brought forward that II this was actually
the case January exports are experience
ing a decline. Deductions from monthly
foreign commerce records were so faulty
last year, however. that it is not safe to
attempt any from the December show
ing.
Sentiment was evidently made more
bullish toward sterling by renewed
reports from abroad that an eff
fort to have British demand notes in
the United States Treasury funded for
long period of years would shortly be
begun. A moderate decline of French
exchange may or may not have been
influenced by published cables that Brit
lsh and French representatives at the
allied conference were far apart on the
PREPARATIONS question. German marks
were firm. The Canadian rate again
improved it's position.
While the stock market was largely
one of specialties, a firm price tone ex-
listed throughout the day. Industrial
issues recovered from the pressure OF
short selling with resiliency equal TO
that of Wednesday. Bethlehem Steel
B shares supplied an excellent example
of the way a little short covering could
lift prices, a net gain of two points be-
ing recorded after the quotation had
been depressed somewhat In early trad
ing The Bethlehem Corporations re-
1 port IOE 1SAU StlOWto tidb peSN PciAOihi-
ance was by no means unfavorable. the
net income Of s1i.45s.9 900 being within
about 100000 of the total of the year
before.
Liberty bonds experienced the first
broad reaction of the last two weeks
declines running from a quarter to more
than three-quarters of point in the
more active issues. The entire bond
market was less steady than on the day
before, news of the pending S60,000,000
PennsylvaS.,a Railroad 615 per cent
fifteen ys Issue at a price slightly
under pr naturally causing rather
sharp reactions in other bonds of this
road.
Call money remained at Z per cent,
and little time money was offered under
this rate. An encouraging feature of
the credit market was contained In news
that moderate amounts Of first grade
commercial paper was being placed at
IN per cent