The New York herald., 1921-06-18
FINANCIAL NEWS I
AND COMMHT
Bear Attacks Are FOLLOWED by
Brisk Covering Moyements
in Stocks

BY centring their attacks on United
States Steel. Mexicsh Petroleum and
several railroad equipment and tobacco
stocks. the Professional element COM
mitted to the fal/ /of prices forced sew
eral stocks do1 to new low records
yesterday for tfis year. There was no
change in the character OF business. the
same driving pressure that had carried
the market lower every day this week
being in Nidence during the morning.
In the afternoon, however. a flow of
short cbvering purchases made its in
fiuenc9 felt and final quotations were
irregInar. some disclosing sizeable gains
froA the sessions lowest prices. Amer
ic2h Locomotive, Baldwin Locomotive.
chesapeake and Ohio, Corn Products
And several other more active shares
were down 2 points or more. but gains
of a point and better were found here
and there. Steel regained nearly a full
point from the minimum OF 1874 and
Thursdays final quotation. Call money
was 51a per cent. on the New York
Stock Exchange. although loans again
were reported at per cent.
In such market conditions as have
prevailed this week it is difficult to see
much further than the limits of each
days dealings. The tendency OF the
market itself, even though obviously as
sisted by speculative efforts of the rank
est variety. tends to absorb considera-
tion of forces working elsewhere to dis
rupt the dreary sentiment which makes
persistent price reaction possible. The
market following when in a bear mood
ignores such clear tendencies as have
been shown by the Federal Reserve po-
sition for many weeks, the fact OF
steady credit defation being consid-
cred more as a product of dull business
than as corrective of conditions which
But underneath. despite handicaps
caused by unfavorable markets for
goods at home and abroad. traces can
be seen of slowly improving business In
and certain recent events in the bank
ing field have helped to pave the way
for a freer extension of merchandise
credits than was possible two and three
months ago.
Items Of news from Europe of signif-
icance for future movements of exports
had to do with the coal and textile labor
troubles in England. While the miners
vote, as reported by cable, indicated that
continuance of the strike was upheld, the
supplementary information that many
miners were drifting back to the pits
was taken to forecast break In stu
,tion which had been intolerable for
British manufacturers. News that textile
workers and their employers had come
to an agreement on working terms was
important in It's reference to consump-
ton of American cotton. The real appli-
cation of textile development however,
will be shaped by the demand for cotton
goods in the markets fed by LANCASHIRE
mills. Our cotton market yesterday
seemed to be moved chiefly by sentiment
aroused by the coal miners decision be-
cause. after brief period of steadiness,
liquidation again got under way and,
after highly irregular series of swings,
future options were 40 to so points lower
than at the close of Thursdays business.
Evidently the Preparations Commission
is taking measures to prevent such vio-
lent churning of the foreign exchange,
especially sterling and francs. as was
entailed in the initial payments by Ger
many in New York. The movement to
permit the German Government to liqui-
date its debt In several currencies and
pay partly in goods suggests that dis
turbance to the international money
market is to be avoided as far as possi-
BILE in the future. Sterling. above 3.7S
yesterday. was nearly 10 cents to the
pound higher than at the bottom of the
recent sharp fall and the market dis
closed great deal Of firmness Francs
lire and the others were less vigorous
than the London rate. but nearly all of
them gained ground.