The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-02
FINANCIAL NEWS
AND COMMENT
Stock Trading Falls Off, In
terest Being Centred in Spec
tacular Rise in Cotton.

With trading in the New York Stock
Exchange approaching a prehoiiday
character sharply falling off in volume,
interest largely centred in the spectacu-
lar cotton market following the pubica-
ton OF the Government crop report.
which was more bullsh than had been
anticipated and which had not been
overdiscounted. This report, indicating
a promised yield OF only 100000 bales,
the smallest since 1892, and showing the
lowest condition report in this country's
history. appeared at midday. boosting
prices 100 10 16J points above the pre-
cedng close and carrying them to the
highest levels on the current movement.
The rise was not out OF proportion to
the character or the report. which placed
the condition at 1873 rer cent. Of normal.
compared to the ten year average OF
67.7 per cent. From a stock market
crop on bank loans IN the South will be
Of intcreset. ana In some quarters pre-
dctions were freely made that there
would be an early repayment OF credits
secured b. cotton as collateral and
subsequent restoration OF a portion Of
the scuth's buying power.
The immediate effect of the cotton
advance on stock price movements was
slight. because the trading In stocks
centred in relatively few of the active
issues. The list showed a highly irregu-
lar tone at the closing and a reactionary
tone was discernib!e. There were no
really weak spots outside OF the sugar
stocks, but drives against Northern Pa
cific. Great Northern and 81. Paul
caused those rails to lost a point or so.
on the other hand certain individual
stocks were in strong request. such as
the Mexican Pctroleums. American
WOODEN. Consolidated Gas. Peoples Gas,
Endicott johnson and Tobacco Products
The feature of trading was the rise in
Mexican Petroleum of ) points to los.
hut here a moderate reaction IS to be ex-
pected. Buying in these issues was in
response 10 favorable developments in
Mexico.
Bear attacks on Hill road stocks were
accompanied by reports that the North
ern Pacific directors at a meeting to be
held in about ten or twelve days would
reduce the dividend, but information
from authoritative sources fatty con-
tradicted this report Nevertheless
Northern Pacific lost more than two
points and Great Northern preferred
rs. The former company has an un-
interrupted dividend record for about
twenty years, and at times il has earned
more than twice the dividend paid. The
dividend for one quarter has been paid
out Of surplus, but in view of past earn
ings and the July record, further sur
plus appropriations are looked for dur
ing this transition stage toward nor
malcy.
In the bond market the fixed debt
issues of the Hill roads scored sharp adj
vances. the Great Northern Is and joint
6 Us rising to a new high record OF 1o2.
Tho entire bond market continued to
SHOW ~ TONE Ol uIlueTlylilS strength ana
the investment buying was steady and
well spread out through the list. For
the most part price advances were
slight. but significant gains, in addition
to the Hill road bonds. were recorded
in marlborough securities. Mexican
bonds. French. Brazilian and Chilean
bonds.
The completion OF the August repara-
ton payments was followed in the foreign
exchange market by an advance which
was spread over the entire European list,
sterling gaining IL cents to 1914. the
highest point OF the current movement
Brazilian exchange continued to work
higher, as expressed in cents. and the
Argentine Republic advanced somewhat
on the successful completion OF $1,000
900 financing to enable the purchase OF
locomotives from the Baldwin Locomo-
tive Works for the Department OF State
Railways. Uruguayan exchange on the
other hand. suffered q further loss.
In the money market call funds
loaned at 81 per cent. all day. the
banking pool lending more than $4,000
900 to prevent the recording of higher
rates. Grain prices were strong. the
December future closing four points
higher.