The New York herald., 1921-09-13
FINANCIAL NEWS
AND COMMENT
Reaction and Realizing Fca-
ture All Markets-Fluctu-
ations Are Sharp.

The extensive reaction. through which
practically all leading markets passed
yesterday. was explainabie chiefly by
reference to what went on last week.
Such violent speculative swings as
cotton passed through from Tuesday to
Saturday could not help but leave
traders in confused state of mind in
respect to the fundamental factors
which always supply the basis Of
| genuine price movement. 1T was prac-
tically impossible for any one engaged
4 in trading to determine the real trend
in one hour only. TO fall back as much
| in the next one. In stocks, last weeks
rise, which lifted many Industrial issues
to 10 points above the preceding
weeks final price level. was so patiently
the result of concerted speculative buy
I ing that it was certain a great deal of
profit taking would result.
! Realizing sales OF cotton, stocks and
grain were in evidence Immediately at
| the start of yesterdays business, but
| there was at the same time. suffci-
entity large volume of over Sunday buy
ing orders. induced by last weeks
strong closing. to cause prices to fiuc-
tuate sharply. October cotton opened
rs points up. but that advance acted to
make all the more severe the later de-
cline. which carried its price down the
full 200 point distance allowed in q
single days operations. Cotton trading
and 1t was probable that the decline
. of the late afternoon, which left prices
so to 40 points lower than they were
on Saturday, was partly because many
spectators retired from the market,
electing to wait until speculation became
more orderly.
Naturally. the stocks which had been
bid upward the fastest in recent days
were the ones to feel most the effect
OF realizing. Baldwin Locomotive,
Crucible Steel. Mexican Petroleum,
Studebaker. United States Rubber and
United States Steel declined "a to moro
than points, the reaction gaining
momentum in the later hours. Railroad
issues exhibited periods of firmness at
times. and when they fell in the train
of the industrials. 1t was noticeable that
their net declines were fractional in the
main. In the cases of industrial and
rail shares the days news contained
nothing OF character to alter last
weeks fairly cheerful sentiment.
Another set back carried the German
mark quotation down to about .92 cents.
factors surrounding the German cur
rency situation. disclosed in recent days,
the fall appeared to have little effect
on other markets. Sterling, francs and
lire, however. lost some ground. while
rates on South American centres were
| firm or steady. 1t becomes a question
! OF how much longer the currency can
be expanded without dislocating alto
| Gether precarious situation of
Germanys credit outside her own
borders. but the weekly Reichsbank
statement showed that expansion was
still going on. Notes in circulation were
So.727. GOO, 900 marks on September Z. an
increase OF 654, 100000 marks for the
week. and of nearly $500. 100000 marks
in fortnight.
As an indication that trade has
passed out OF the midsummer slump one
may refer to the country's foreign COM
merce In August. The s375.000.oo of
exports. of course. seem small against
the $40. 900 OF last December. but
their gain in August compared with that
of July. amounting to s54.o00,00o. was
the first sizable gain since December.
and the August increase of s16.00o.000
in imports was the first one since April.
AS grain exports reached record weekly
totals during last month. 1t Is probable
that agricultural shipments rather than
mania ctures figured largely in the total.
Call money was n per cent. for all
| loans yesterday and a slightly frmer
rate for them before September Is would
not be surprising.