The New York herald., 1921-12-20
FINANCIAL NEWS
AND COMMENT
Foreign Borrowings Feature
Day-Stock Market Is
Stronger at Close.

The abundance of credit and capital
and the easing tendency of credit costs
were emphasized in clear fashion yester-
day by two important developments.
The first lay in news of foreign loans
closed over the week end In the New
York market and comprised the s30,00o.-
900 Of the Kingdom of Denmark's per
cent. bonds and s25,0oo.o0o of the Cana
dian Pacific Railways debenture stock,
and the second was entailed in the re-
duction of the Atlanta Reserve Banks
rediscount rate from 51a per cent. to
5 per cent. The offering to the public OF
the Danish bonds at price to yield 61a
per cent. was worthy of contrast with
the French loan of last May on an per
cent. basis and with the Danish CONSOLE
dated municipal loan in January at
prices to yield slightly more than per
cent. Five and six months ago numerous
foreign government bonds were obtain
able on an per cent. basis. The retreat
Of interest rates and the known needs OF
several foreign governments suggest
that the new Danish loan will prove to
be the first of several to be made early
in the new year.
The cut of the Atlanta rate is proof
that liquidation is progressing in satls-
factory fashion in the South. The prac-
tical disappearance from the Reserve
systems weekly statement Of loans be
tween reserve banks during the last
fortnight had forecast yesterdays &C
ton, and the current tendency Of cotton
prices indicates that the South will get
into more comfortable position az time
goes on. Cotton futures have been rising
ever since the Government report show
ing that the output would be close to
| 1000, 900 bales more than had been pre-
dicted two months before was issued last
week. 1t would be a strange overthrow
Of conventional market procedure were
it not for the knowledge that crop stat
istics have not had much to do with the
recovery. Increased buying by British
spinners has been an important factor
in upturn, urged evidently by expecta-
ton OF improved markets for finished
goods next year. Futures In New York
yesterday advanced Is to 25 points. and
the spot article was at 10 cents a pound.
a gain of more than a cent from its
recent low level.
In the days markets interest was d.
vided between foreign exchanges and
bonds. Sterling was carried forward
nearly cents to the pound in early
transactions. following bulge in Lon
don, and although much of that I'M
provement was lost later, the final quo
tation was we'll above Saturdays last
price. Francs also recovered with con-
siderable snap and the Danish loan
acted to stimulate exchange on Den
mark. The general tone OF the market
was shaped in part by news that France
was less insistent than before on her
naval contentious before the Conference
for the Limitation of Armaments. but
that influence was less potent than the
detailed commerce figures for Novem-
ber. which showed the great extent to
which Europe had cut down purchases
Of goods In the United States. Although
Liberty 31as were weak in the afternoon.
the Government war bond market as
a whole was firm.
There was little to be said about
stocks that was not said on every day
Of last week. Professional jockeying
for strategic places to seize quick
profits caused much irregularity. Mexi-
can Petroleum and several other vola-
tile industrial issues were weak in the
morning, but the list presented a fairly
firm front to selling most of the time
and broad short covering movement
near the close caused strength in sew
eral directions. Rail shares were steady
and several gained ground. The mar
ket paid no attention to a rise OF the
call loan rate from to per cent. be-
lieving that when the shifting Of funds
connected with the December Is trans
actions comes to an end rates will be
easier.