The New York herald., 1921-10-01
FINANCIAL NEWS
AND COMMENT
Stock Market Closes Irregular.
While Bonds Have Firm
Price Tone.

An early advance Of stocks, in which
industrial and rail shares participated,
was halted early yesterday afternoon.
and in the stock markets last hour pro-
fessionsl traders made the most OF an
upturn OF the cali loan rate to per
cent. by attacking some Of the erratic
petroleum and automobile issues. The
result was highly irregular list at the
close. few stocks being q point higher
than they were on Thursday, while
several lost as much ground and the ma
jority were changed only fractionally on
the day. The fluctuations carried little
meaning for observers who were trying
to determine the extent TO which the
market was seeking to discount busi-
ness Improvement later. In bonds, how
ever, there were still present those posi-
tive influences making for higher prices,
notably in the Government war bond
gToup--and the suggestion from the gen.
orally Arm price tone was that the rise
OF call money was only temporary and
hinged on the month end. dividend and
interest needs of corporations. An ex-
ccption to the broad tendency of bonds
was supplied by French Government is
sues, which were actually weak. the s
per cents. getting below par and the 7s
per cents. receding almost q point
French bonds have been unsteady for a
fortnight, but yesterdays movement
gave greater emphasis than before to
the growing question about Germany's
intentions respecting reparations pay
naents in November and December.
AS the process OF finding solution
for the New York traction problem is
largely a local affair, the report Of the
Transit Commission had no apparent
effect on dealings except in the shares
and bonds involved. Interborough
Rapid Transit 5s and Brooklyn Rapid
Transit per cent. notes moved forward.
but stocks were weak. The programme
Of wringing the water out OF the COM
panies naturally puts the shares in a
rrecarious situation marketwise, evil
denced by a fall OF enthusiastically
% per cent.--in the quotation Of Brook
lyn Rapid Transit. The absence Of i'm
portant comment on the transit plan
during the day showed that the full ex-
tent of the proposal for unified sys-
tenn had not been sized UP by the ex-
perts. The economies Of operation and
Improvement OF service In such a system
are obvious. The question which Wall
Street doubtless will debate for consid-
cradle time centres in the moral effect
on public utility financing which mu-
nicipal ownership would have in the
country's largest city.
The days developments were prac-
tically devoid of new factors having ap-
plication to the markets. A quiet cot
ton market seemed to show that specula-
tion had slowed down in advance Of the
important Government report, due on
Monday. The statistical position Of cot
ton continues to grow stronger as fig
ures appear. showing that domestic con-
sumption and exports are rapidly eat
ing into supplies. The New York Cot
tor Exchange reports that 1,75o.o0O
bales have been brought into sight thus
far in the cotton year, an increase Of 81
per cent. compared with those of the
corresponding 1890 period. Last weeks
takings by spinners were more than
twice as much as they were in the cor
responding 1920 week. The unknown
factor in cotton lies In the state OF cot
ton goods consumption after the mills
finish working up raw material bought
between the 12 and Is cent levels of
July. 1t is uncertainty about this which
hrs had much TO do with the hesitancy
OF futures prices this month, when they
have encroached on 2o1a cents pound.
Wheat futures again disclosed much
weakness. receding 2A TO ia cents a
bushel in Chicago. The stacking Of the
export movement. which has been felt In
srain prices this week. was shown In
graphic fashion In Brcdsfreet's record
os the outflow OF wheat and flour
equivalent The total from the United
States and Canada In the seven days
ended on Thursday was 7.455.753
bushels, decline Of about IS per cent.
from the aggregate OF the preceding
week.
Lire exchange drew back to its low
est level since March IS. Other ex-
change rates were firm.