Evening star., 1921-12-01
STRONG MARKET
FOR SPEC|ALT|ES
Rails, Oils, Studebakers Are
Leaders-Exchange Situ-
b.. alton Is Improved.
BY STUART p. WEST.


ther violent recovery in German
marks was the leading incident of
the day in the financial markets. 1t
reflected even more than yesterday
the feeling of confidence in banking
circles that something will come out
Of the informal negotiations which
the German business leaders are hav-
ing in London, that Germany may be
successful in her plea for a morator-
ium so far as cash payments on the
next indemnity installments are con-
cerned. Should the other allies. in
face of the opposition of France.
agree to Germany's proposal, to pay
in kind, it would certainly warrant
the jump which the German mark
had today.
had some curious effects on the other
markets.
Sterling got up well above the four
dollar level and was quoted higher
than at any time since the spring Of
1920. French francs had an equally
sharp upturn and were back over the
entire ground lost during the last
three weeks And yet, with French
exchange improving rapidly, French
government bonds dealt in in the New
York markets were heavily sold, and
in the case of the new TVS were
driven down quite close to the low
record of 93k.
1t was evident that the belief pre-
walls that a possible moratorium on
German cash payments would be a
very bad thing for the French bud
get and would curb French govern
IN
substitution of goods for cash in the
reparations payments would not so
much effect exchange rates, because
it would not influence Frances
position in the international money
markets.
Stock Market Active.
No doubt today's remarkable recov-
cry in the exchanges was factor con-
tributing to greater confidence in the
situation generally, and this had its
bearing upon the market
However, the better tone Of the share
list might quite well have come about
any way through the recognition by
were making no headway toward forcing
prices down.
Further weakness at the start ap-
peared in a few special issues. among
Them Mexican Petroleum and Interna-
tional Paper.
The rest of the market was not at all
perturbed, and after the first hour or
two began to pay more attention to the
counter r-balancing strength in other
stocks. Standard Oil of New Jersey
was bid up sharply and this had its ef-
feet upon the rest Of the oil group.
The Mercantile Marine shares were
very strong, carrying American Inter-
national along with them.
Baldwin Locomotive got up to its
previous high under short covering
4 -
pay the dividend which comes on the
price of the stock tomorrow.
But of more consequence still was
the consistent strength of the stand
ard rails under the leadership of
Northern Pacific and Great Northern
preferred. The action on the Burling-
ton dividend was the principal topic
of discussion.
North American.
The advance in North American was
associated with the circular offering
new stocks to holders of record De-
cember s at the par of $50 share.
AS the present stock was selling be-
low 43 when the circular was sent
out, it seemed at first glance rather
a peculiar Imposition. The special
attractiveness of the offer lay. how
ever, in the provision for easy pay
ments extending over two years.
1t did not necessarily mean, there
fore. that North American common
must sell at so by December s, but it
did seem to imply confidence by in
siders that their stock is worth at
least this figure as a long-run in
vestment. Trading in the North
American rights was to have begun
today, but it was later announced
that the listing had been postponed.
An OIL Merger.
With the financial district filled
with all sorts of discussion regarding
the Independent steel merger, which
is now in an advanced stage. there
appeared rumorS today of an impend-
ing oil merger. This amalgamation
of oil companies is reported under
consideration in New York this week,
but the only point in it's favor, ac-
cording to one source. is that the ac-
tivities are being directed by Stand
ard Oil officials and that one of the
companies to be taken is small
Standard Oil subsidiary