The New York herald., 1921-05-03
FINANCIAL NEWS
AND COMMENT
Stock, Foreign Exchange and
Commodity Markets Make
Concerted Rise.

In more positive fashion than dur
markets recorded yesterday the i'm
proved sentiment which has been COM
ing into speculation Of late. For the
first time there was a concerted rise
of stocks, foreign exchange and COM
modities. while in bonds firm tone
and fairly great activity betokened the
growth of the impression that money
rates were shaping for easement. The
fact that call money remained at per
cent. was tied up with the first Of the
month requirements. The more i'm
portant index Of the money and credit
situation was supplied by commercial
paper, with a considerable flow OF bills
discounted at to 7A per cent. and
special transactions at under per cent
The bear party retired from its posi-
ton with speed after an early morning
drive at Mexican Petroleum, and one
or two other issues uncovered sur
prising amount of resiliency. The re-
action which accompanied this attack
lasted for only half hour. and there
after oil shares strode forward under
extensive buying which took far more
account. apparently. of news of several
new wells of large calibre in Mexico
than it did of rather unexpected cuts
in crude petroleum prices in the mid
continent field. Motors, tobaccos. leath-
TIA vic
point to 4 points higher at the close
than they we're on Saturday and a nat
ural expansion of profit taking sales
toward the end of the day was alb
sorbed without impairing quotations to
any sizabe degree.
AS far as the buying went it had all
the earmarks Of purchases by strong
groups of traders, accompanied by pub
lie participation of the sort that al
ways trails along in a rise. But
Il is among seasoned spectators that
reflection of pending business events Is
usually discovered. and for that reason
the supposition is permissible that the
market continued yesterday to discount
developments some way ahead. They
are by no means tangible from the
present viewpoint. yet it is plain that
certain producing companies which were
affected severely by the slump of last
autumn have come through into period
in which reduced costs OF labor and
material enable them to mark down
selling prices. 1t need hardly be said
that encouragement for industry lies
in this fact--the sooner prices are low
cred to levels at which consumers will
be attracted the quicker will be the
enlargement of manufacturing.
The granting of ten day extension
their reparation plans brought fresh
confidence into the markets that that
troublesome question would be settled
before long. Probably the strength of
grain and cotton was traceable to this
decision. for producers are entertaining
growing hopes that once Germany
yields to allied demands the way will
be paved for exports Of raw material
and additional foodstuffs. The most
important reflection Of German and
French unity on a programme for deal
ing with Germany was in the foreign
exchange market, sterling rising to
level above 3.T and French francs ad-
vancing to 7.S4 for sight drafts. The
French rate now stands about three
quarters of a cent higher than the quo
ia ton of a month ago.
The financial community was well I'M
pressed by the statement of the Secre-
tary of the Treasury that Government.
expenditure must be cut down in every
possible manner. Mr.. MELONS letter.
published yesterday morning, was
studied with close attention in bank
ing circles with the purpose of estimat-
ing the relation likely to exist between
business and taxation. But 1t was evt-
dent that a great deal will have to be
done before a tax schedule is devised.
a job which industry hopes will be
completed before midsummer.