The New York herald., 1921-05-14
FINANCIAL NEWS
AND COMMENT
Foreign Exchanges Make New
Highs for 1921-Stocks
Irregular at Close.

The character of business in yeSter-
days markets was much the same as on
Thursday, foreign exchanges reaching
upward to new high records for the year
in the cases of those countries intimately
concerned with the German reparations.
Sterling went slightly above the s4 level
in a moderate volume of trading, at the
same time that francs, marks, lire and
several southeastern European rates dis
played strength. As the first flush Of
satisfaction over the German consent
had oeen disspated largely in the mar
ket of the preceding day, 1t was not
surprising that some irregularty de-
changes We're decidedly firm all along
and it is probable that banking opinion
to the effect that rates as a whole have
seen their lowest points had consider
able influence on transactions.
Stocks were concerned again almost
entirely with internal conditions. For a
half hour or so in the morning quite a
rally developed in such issues as Stude-
baker. Chandler. International Paper
and one or two tobaccos. but obviously
it was the product of short covering, and
when the process had been completed for
the time being professional hands took
the market in charge for a sharp at
tack on shares which had been the
strongest during the brief recovery. A
highly irregular price list at the end
of the session recorded a few gains OF
point or more and also an array of de-
clines which extended from fractions to
as much as points. Nothing could be
traced in the days operations except
speculative ventures for quick profit
a feature of trading in securities was a
strong advance of Mexican Government
stimulus of confidence expressed in Mex
leo city and reported by telegraph that
the time would not be long before the
Government of Mexico was recognized
by the United States. Paralleling that
movement was a rise of foreign bonds
which have an exchange privilege at
tached to them and several rail issues
also improved their position. OF course
speculation is the driving force behind
a rise of bonds which have not been
paying interest, but the tendency of the
foreign exchanges lends different color
to upturns OF particular foreign issues
and the rapid output of new funded
securities this week has disclosed an
which is aided by the relaxation of
money rates. Call loans were arranged
on the New York Stock Exchange at
6a per cent, rate which betokened
greater ease than had been looked for in
advance of next Mondays transactions.
The cotton market again lost ground
the movement toward lower levels hav-
ing been. strangely enough, more pro-
nounced since the reparations decision
was outlined than it was In the preced-
ing three weeks. But the facts of, the
cotton situation are enough to show that
actual rather than sentimental consider
alton of new buying power in Germany
will be necessary before present large
stocks and the promise Of this years
yield can be appraised through a rising
scale of prices. In grain a firm tone
prevailed. The market had slight op-
portunity to reflect the passage of the
Tichener bill by the House. as news of
that event came rather late in the day
The practical phases of measure which
would restrict operations in futures arc
likely to be revealed in trading in the
next few days.