The New York herald., 1921-09-28
FINANCIAL NEWS
AND COMMENT
Stock Market Sluggish and Ir-
regular-Silver Up to II So
Cents-Marks Drop.

Several events in other markets drew
attention yesteday away from the rather
sluggish and irregular trend of prices In
trading In stocks A sharp uptrrn of
cotton quotations. bringing advances OF
$3.50 to more than Sc bale in several
options. the establishment of new low
record for German exchange. an advance
of silver amounting to 3 cents an ounce
in the open market in New York and a
fall to the extraordinarily low price
OF 2ss cents a pound for raw sugar in
In the hands OF the Cuban Sugar Com.
mission showed In rather remarkable
way cross currents sitting through the
markets. Instead of stability as autumn
advances. it seems as though economic
factors are becoming more and more
confused. But il is clear that the in
fiuences which are applying to one COM
modify are not affecting others. and in
asmuch as speculative operations are
making obscure true underlying develop
ments. more time than has elapsed since
summer will be necessary to determine
what autumn and winter are to bring
forth.
A feature of cotton trading was tho
the staple on October contracts were
snapped up. 1t betolsened an active de-
mand from spinners at home and abroad
for cotton which Is to be delivered in a
short time and urged spectators to bid
the various options upward with such
zest that realizing sales near the end
Of the day carried prices only part way
back from their highest points. In sugar
the situation Is exactly the opposite from
that of cotton. supplies far in excess of
the demand for the former making the
position OF the sugar grower decidedly
difficult as the season for the gathering
of a new crop approaches. A COM
mentary on the troubles OF the sugaA
planter was presented In rather vivid
fashion during the day In a plea by the
Cubar Cane Sugar Corporation. one of
the largest sugar producing units. to its
debenture holders to permit the placing
of a $40, 900 loan ahead OF its bond
owners claims on equities In the com,
pany. a recompense being an increase
of the bond coupon rate from Z to s
per cent. The proposal. although un-
usual in financial practice. was sup
o,,lr ctaf nv,f
of the company's troubles. which, sum-
marized, were vested in the fact that 1t
had been caught between the upper and
neither nillstones of a fiattened market
and relatively high production costs.
Sales of German exchange were re-
ported at prices as low as .79A OF a cent
mark and the decline from SO of a
cent carried with it other central Euro
pean exchanges. The market was so far
dominated by speculation that dealers
we're unable at times to follow the trend.
No new explanations for the continued
fall of marks was forthcoming. but 1t is
possible that light on Germany's attitude
toward additional reparations payments
will come later from Berlin, as foreign
news indicates that political leaders and
business men are weighing the situation
with thought of united effort to meet
the allied demands.
The rise of silver to 71s cents an
ounce-it sold as low as 52ss cents on
March 6-refected further large pur-
chases by India and China in London.
and evidently gave fresh evidence OF
improving business In the Far East.
Stocks had alternating waves of firm-
ness and heaviness, but the advantage
was finally on the selling side and de-
cllnes of fractions to a point were dis
tributed broadly at the close. A reac-
ton of III points in Pennsylvania Rail-
road shares evidently reflected the
gloomy outlook presented by w. w. At
terbury, vice-president Of that road, be-
fore its employees on Tuesday, but the
were Industrial issues. Buying for the rise
was affected by an advance OF the call
money rate from per cent. to 3 " per
cent. Interior banks are drawing down
their New York balances. a familiar
process when the rate stays at rela-
lively loy, level for a fortnight, and the
demand for money has been increased by
the large output of new security issues
which have to be financed during the
period OF distribution.