The New York herald., 1921-12-01
FINANCIAL NEWS
AND COMMENT
Stocks Highly Irregular-In-
dustrials Rally at Close
Rails Best-Marks Up.

AS trading in stocks was governed
yesterday largely by speculative moods
and influences of the moment, there was
high degree OF irregularity In prices
and IL was difficult to tell whether or
not the substructure was less firm than
Of Industrial shares was downward
during most of the session. with
fairly lively rally at the close, which
converted numerous losses of n point
into one of fractions. Rails did better
than the others. especially Northern
Pacific. the outlook of which was
thought to be improved by rumors that
the Burlington was preparing to pay an
extra cash dividend. The Great North
ern would benefit from such a disburse-
ment and its preferred shares advanced
slightly. But quite number of rail
issues receded in a fashion to show
that no factor Of general Importance
had application to market operations
Oddly enough. information from Chi
cago that the United States Railroad
Labor Board was preparing to consider
tho latest applications for wage re-
ductions much earlier than had been
expected had no clear reflection In rail
stock movements.
The stock and bond market sur
rendered first place in financial interest
to the foreign exchanges. Strong In
tlnnations from London that British
financial authorities were seriously con-
sidering two year moratorium on
German reparations payments urged
short covering In German exchange
and appeared to accomplish similar
results In sterling and francs. Sterling
fact went fraction higher. and francs
sold for more than cents. The news
from abroad was too vague and lncon-
plete to show just what was contem-
plated in London. but the markets were
willing to believe that the visits of
Hugo SHINES andRathenau to the British
capital portended some real develop
ments in the near future. The point OF
primary interest for the exchanges lies
in the likelihood that moratorium, If
arranged, would include the payment
which Germany is due to make by
January Is.
Bonds were unusually active. although
their turnover did not reach the size of
Tuesdays and prices were inclined to
be slightly reactionary In the afternoon.
The demand for Government war issues,
however, showed hardly any signs of
slackening several of them scoring ad-
vances over the final prices of the pre-
cedng session. From the market point
of view bonds have arrived at an in
teresting stage The downward slant
of money rates points toward higher
prices for funded securities. but It is
undoubtedly the case that bond and
brokerage houses have laid in supplies
at prices lower than those current and
they will be distributed in due time.
Whether such sales will tend to cause
irregularity and even a considerable re-
action later will be determined solely
by the permanency OF the bona fide In
vestment demand.
rally of TO PA cents a bushel in
wheat futures followed estimates made
in Liverpool that the surplus grain from
the world crop of 1921-1922 would be
much less than had been calculated q
month ago. Cotton prices backed and
filed, but ended with gains of 20 to "a
points.
Call money was loaned at and 5ia
per cent. with lenders voicing expecta-
ton that the first week of December
would see some easement of quotations