Evening star., 1921-10-10
BRITISH STERLING
MAKES NEW HIGH
Stocks Opened Firm, Oils
Leading-Persistent Selling
. Brings Fresh Weakness.
BY STUART p. WEST.

NEW YORK. October 1O.-The most
important incident in the financial
market today was a further advance
in sterling exchange. which carried
along with it French francs and other
currencies of western Europe. A rise
OF over IL cents in the pound in ster-
ling within a single week coming at
this time, when there is such acute
interest IN the subject of German rep
arations. might seem to have some
broad Significance.
AS a matter of fact. however. the
TWO main reasons for the advance
the indemnity question: they concern
simply the relations between Great
Britain and the United States.
Great Britain has been buying up
exchange, preparing to meet obllga-
tions falling due here the middle of
the month. At the same time the
export movement, both in cotton and
in wheat. has fallen off. and thus the
main source of the supply of ster-
ling drafts. which has been weigh
ing the market down in recent
months. has been considerably cur
tailed.
This combination, coming upon a
lingering short interest of some pro-
portions, has furnished an adequate
explanation for the sterling upturn.
which is the largest that has occurred
since early in the year. when rates
got up to the four-dollar level.
Interesting as it was, however. it
could not be said that the advance
in the exchanges had much influence
upon other operations of the day. In
cotton it was more than offset by
further heavy offerings of the staple
from the south
InasmuGh as the London position in
cur security market is small. the
sterling movement had no effect
upon stocks.
The stock market opened fairly
strong and for an hour or so active
buying went on in the American oil
shares.
. Then realizing sales were encounter
cd in sufficient quantity to cause
operations for the rise to be Sus-
: pended.
Weakness appeared in Studebaker
and one or two other of the motors.
I, also in the erratic Mexican Petroleum.
Oils Are Higher.
Here and there oil quotations were
advanced. not in the nature of d
fresh rise. but by the way of making
more uniform last weeks price rails
ing. For the first time in many
months the steel corporation report
ed an increase in untitled orders on
its books in the figures submitted for
. October l.
The increase was a small one-it
amounted to only 2S.744 tons-but
even SO. there was another important
indication of the turn of the tide in
the steel industry.
The prolonged and rather disauiet-
ing slump in the grain markets was
at least temporarily checked by the
government report published over
Sunday, which gave the final wheat
yield as 47,000.Oo0 bushels less than
last year and at the same time
10 lou 1f
vest 100000 bushels during last
month.
On the other hand. while no very
definite judgment could be passed
upon the meeting between the rail-
way executives and the heads of the
government regarding the rate and
wage question, there was no doubt
that the conference had left the rail-
way outlook more uncertain than it
was before.
studebaker Weak.
Persistent selling occurA-ed in
Studebaker today and this was one
of the weak points in the general
market. People who were bullish on
Stude ebaker when it was having it's
big move across 30 last spring. are
not bullish now. simply because
they say that the earnings have
fallen off. and that there Is no
Likelihood of either an increase in
The dividend or an extra dividend.
the rumors of which were the ba sis
for the movement five months aga
Studebaker even in the third quarter
has been covering it's dividend by a
fair margin. but its earnings have
been running more than so per cent.
so it is reported. under those during
the very prosperous period which the
company enjoyed in the first half of
1921. Chandler Motors was also
heavy again