The New York herald., 1921-10-04
FINANCIAL NEWS
AND COMMENT
Oil Stocks Hold Gains-Sugar
Issues Drop-Cotton Is
Higher at Finish.

Stocks recorded some interesting
movements yesterday, but it was cotton
which attracted the greater attention In
speculative circles. In stocks it was the
presence OF excessive supplies OF unsold
products in the worlds markets which
caused the most pronounced fluctua-
tions. the sugar issues being weak all
the way along, while violent price
changes in cotton futures quotations
were directed mainly by the prospect
OF The smallest American GRO, l.. thirty
four years. The contrast between these
some of the extreme conditions in which
the markets are struggling this year in
the process of returning to a normal
basis for doing business.
An early upturn of SIS to $3.50 a bale
in prices of the active cotton options,
followed almost Immediately by a SEN
sational ll-of $c.25 to nearly $40, and
then secondary recovery, which left
the final quotations $1.25 to $3.50 n
bale higher than they were on Saturday.
were not only reflections of short crop
prospects, but also Of great uncertainty
over the cotton manufacturing outlook.
From the statistical aspect the cotton
situation seems to forecast prices in the
winter much above 81 cents pound.
Adding together the probable yield of
the current harvesting with the carry
over from 1920 stocks. the sum would
be 100000 bales less than the actual
yield in the last crop year. 1t may be
calculated also that consumption has
been curtailed so drastically for twelve
months that the public at home and
abroad must. perforce. buy extensively
before the next crop comes along. But
buying power has been reduced so much
by business conditions that cotton
manufacturers are unable to determine
whether they will be able to sell goods
rapidly when the mills begin to work
up Is to 20 cent raw material. and that
is an Influence which has caused such
erratic movements in the market in the
last six weeks.
While sugar stocks were dropping
back-Amerfcan Sugar Refining issues
went to new low records-several petro-
leum shares were bid upward and held
their gains very well until the closing.
There was little Of moment in the rail-
road department, and while numerous
industrial preferred stocks and quite an
array Of miscellaneous specalties went
higher on small dealings, the UNDER
tone was unsteady. The sugar situa-
tion Is well known to every one who
has examined production figures and
noted the retail prices in store windows.
The law Of compensation has applied
with q vengeance to that market; the
period of q to 22A cent raw sugar Of
eighteen months ago. when an appar-
ent scarcity. which was only apparent
as hindsight shows. made 1t seem to
some as though prices were on a per-
manently high basis. has been followed
by 90 vast a congestion Of supplies that
producers can only hope for the liqui-
dation Of stocks through a long period
at small profits.
Copper stocks reacted slightly as
profits on last weeks upturn were
taken. The market for the metal, never
theless. appeared to be somewhat firmer
than 1t was last week. In copper. as
In the case of petroleum, 1t looks as
though the great fall of quotations since
business flattened out had carried them
to levels where little buying induces
Immediate hardening Of prices simply
because the producers are unwilling to
sell at figures that carry little if any
clear profit. Purchases have not yet
reached volume which points toward
a rapidly widening market.
Call money went from 5h to per
cent. and a steady market for stand
ard bonds. particularly Government war
issues. indicated the market impression
that money rates would become easier
as time goes on.