The New York herald., 1921-12-06
FINANCIAL NEWS
AND COMMENT
U. s. War Issues Up - Firm
Tone TO Stock Market-Spec-
ulative Favorites Rise.

As the action or the markets yester-
day was the counterpart OF practically
every session last week, IL was difficult
to find features which traced any new
economic influence. The rise Of Gov
ernment war bonds was carried further
by purchasers. which evidently took
account Of the lowering cost of money
at interest, although the weight OF new
supplies in the corporation and nunic-
ipal bond list helped To make prices
of those issues irregular. Quite pos
sibly the figures contained In the Fed
eral budget. providing for a reduction OF
S462, 100000 In national expenditures
in the next fiscal year. had a beneficial
influence on Government bonds In late
dealings. but some new high prices for
1921 were established before the budget
was transmitted to the Congress.
Liberty Fourth AIS at 98.14 were
more than 16 points above their lowest
level and 1oA points higher than the
price as recently as September 1. Vic
tory 4%s went through par. The ex-
pected easement OF call money after
the completion OF November settlements
occurred, the rate going from per
cent. TO ~ per cent
In stocks the familiar process of bid
ding two or three groups upward at
the same time that others were let down
went on from the start to the end Of the
day. The underlying tone. however.
was firm. except among the rails, and
stocks carried forward were those con-
cerning which speculative hopes have
been strengthened OF late by actual
developments in business. Railroad
equipment issues were decidedly strong.
as were tobacco, shipping. rubber and
several automobile shares A drive
against Chicago. Milwaukee and ST.
Paul stocks showed that the bears. II
unsuccessful In working any sizable
reaction amoung Industrial stocks, could
find weak spots among the carriers. The
rails as q whole were steady, but
again the question was debated in COM
mission houses: Why have railroad
stocks been so sluggish lately, despite
some fairly good news affecting them?
It Is forecast that when all returns
are In on rail earnings during October
net income equal to about per cent.
on invested capital for most of the prop
critics will be disclosed. Such a showing
would be the best for any month Of the
year, even though more than one road
were considerably under the percentage
Of net revenue reported by rtrong and
weak lines together. The traffic In
October, OF course. was swelled to larger
proportions than would have been tho
case II strike threat had not hastened
shipments during the first half OF the
month. The impression prevails that,
partly because of this and by reason of
seasonal conditions. November will not
show up as well as did October. but the
stock market seems to be thinking more
about the unsettled freight rate and
wage situation than anything else. The
disposition of speculators for some time
has been to wait for additional informa-
ton about wages and rates before par
t.cipating extensively in buying move
ment.
The foreign exchanges. except German
exchange. were firm. more because OF
light offerings than on account of defi-
mite events hinged on the reparations or
the pending conference on the ex-
changes A bulge In French francs to
747h cents was the feature. establish
Ing q new high point on the swing which
began last week. A reaction OF marks
to .42% cent was practically the regular
weekly reverse which follows the pub
lication OF a Reichsbank statement.
The report yesterday recorded another
great increase OF circulation. amounting
TO 4.75o. 100000 marks. When one pom
ders on reported industrial activity In
Germany the Government printing in
dustry should receive proper attention