The New York herald., 1921-12-21
FINANCIAL NEWS
AND COMMENT
Stock Trading Slackens-In-
dustrials Gain-BOnd Mar
ket Irregular.

Trading in stocks slowed down yes
terday and there was sufficient irregu-
larity in the bond market to indicate
that considerable profit taking was un-
der way from the start to the close OF
business. The quick sale of large new
offerings of bonds. however, showed that
the investment demand was active and
it was probable that a degree Of uncer-
tainty was injected into the market for
Liberty bonds by renewed agitation for
a soldiers bonus payment. One or two
of the Government war bond group re-
ceded about point, and although the
maximum declines were reduced in late
transactions, prices generally were
lower than they were on Monday. II is
fitting that the course of bond prices
in the next few weeks be studied in the
light of the substantial gains which
prices have made since the middle Of
August. In the opinion of some good
judges of bonds reaction Is overdue but
dence that money and credit rates are
heading lower. which impels bona fide
investors to hold their bonds. bought at
lower prices. because OF feeling that
equivalent return cannot be obtained
through repurehases.
The character OF stock trading was
unchanged from the sort OF business
conducted during the first half OF De-
cember. A dozen or so :n0re sctive
issues. Including Corn ProauctS. Endi-
cott-J Johnson. Peoples Gas and sdude-
baker, advanced 1 point TO po nts. but
fractional changes marked most OF the
list. Atchison reversed it5 movement os
Monday. declining lhe greater part OF a
point. and most other rails also were
reactionary. The sharpest changes were
among Industrial speciality stocks. sew
eral of which gained more than points
under small sales. Call money again
reached 6 per cent, out had no ap-
preciable effect on stocks.
The foreign exchanges reacted after
a firm start, but, rather oddly. the rate
on Berlin was an exception. despite
news that a committee of experts work.
ing with the Reparations Commission
had recommended that the allied au-
thorities take charge OF German finances
in case OF Germany's failure or partial
failure to meet her next reparations
payments. Whether this was merely a
threat to force the German Government
to make good its obligations of course
was not made clear In dispatches from
London, but all news In the last few
days has indicated the belief in Paris,
and. presumably, in London. that Ger
many could pay or, at least. make ar
rangements about payment which would
meet with the approval Of the COM
mission. Sterling left off at it's level OF
Monday. The feature of the foreign ex-
changes was a gain in the rate on Mon
treal. which cut the premium on New
York funds at that center to the lowest
point Of the year.
The cotton market went higher for a
time, aided by the United States Census
Bureaus report that $4,000 bales had
been ginned between December 1 and
December 13, although that total was
about in line with expectations. the
trade had been somewhat fearful of an
aggregate which might forecast a larger
crop than the s.340,0O0 bales recently
suggested in a Federal Government re-
port as the full yield. On the rally profit
ia lxin,r "a me into the market on a large
scale. with the result that prices left
off 45 to Is points lower than they did on
Monday. Wheat and corn were sluggish
and price changes were SMALL