The New York herald., 1921-12-28
FINANCIAL NEWS
AND COMMENT
Leading Markets Have Firm
Price TOne-StOcks and
Bonds Strong.


began tho last week OF the year with a
Arm price tone, which was extended into
strength among many stocks and bonds
before the session was far advanced.
Cotton displayed resiiiency that was
rather surprising in view OF the fairly
broad advance of the different options
last week, especially as the holiday still
held sway In Liverpool. One or two
cotton contracts were nearly half cent
pound higher ut the close than they
were on Friday. Call money was easy,
starting at per cent. and then re-
ceding to 4M per cent, with a nominal
return to the s per cent. level In the
afternoon.
In stocks tho advances OF particular
groups seemed to be less the result OF
new information about business condi-
tions than of covering purchases by
bears who had found ventures on the
short side rather Improbable last week.
At the same time it was evident In the
selection Of shares which showed the
most strength that expectations OF fa-
vorable developments in the new year
stimulated purchases. Railroad equip
ment gained to points. American
Locomotive and Baldwin reaching new
high positions for the year. Oil stocks
became prominent in the upturn from
noon onward and steel issues, after
tagging for an hour. moved forward.
while the copper group continued the
advance begun a fortnight ago. Alto
gether the market for stocks was such
as to stiffen the Impressions Of Opt
mistic observers of underlying business
affairs in their belief that 1922 would
begin under auspices which, II not In
dicative Of early expansion OF business
and trade, at the least would forecast
considerably better results than those
of 1921.
The security markets have several
puzzling matters before them, the i'm
| portance of which on profits cannot be
| determined for considerable time. One
Of them is the price trend and another
the relation between railroad rates and
wages. The cuts announced by several
makers Of popular automobiles In the
| last few days shows that the motor in
dustry is not yet settled on a basis
which permits complete calculations for
next year. In the steel trade also there
have been price concessions in one
product or another for several weeks
and an irregular front OF refined petro-
leum quotations Is evident In the daily
next months conferences between rail
employers and workers are completed
additional light viii be thrown on trans
portation costs.
Liberty bonds were In demand suffi-
cient to bring sizable advances on the
day and genuine strength was shown by
three or four foreign Government issues.
| At the moment no large amount of new
municipal and corporation financing is
further along than the stage OF negotis-
tlon, and If week or more should pass
without the emission OF big blocks of
| bonds the market would be all the
stronger in January. according to sur
veys OF the investment situation in con-
servative circles. The money market.
despite the Christmas expansion OF Re-
serve currency and temporary increase
of borrowing, shows no indications OF
tension.
Sterling exchange advanced rs cents
and the firmness OF that market and
| fractional gains Of other European rates
evidently were an influence behind the
rise OF cotton. Grain prices, however,
drew back in the afternoon. Specula-
ton in wheat was evidently affected by
expectation that to-day's Government
report, the last OF this season. would
show a considerable expansion OF the
actual yield OF last autumn over pre-
iiminary estimates.