The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-01
FINANCIAL NEWS
AND COMMENT
Stocks Sold Freely on Profit
Taking and Break i'm Cot
ton Prices.

Studebaker and one or two other active
issues. there was little TO disguise the
fact that stocks were for sale all day
yesterday in the New York Stock Ex-
change. The motives behind the selling
movement were varied. the total volume
did not much exceed 500 900 shares and
net declines in the active list were not
conspicuously large but the character
! Of the trading led many to believe that
there would be a further reactionary
tone to-day. at least in the early part
| OF the trading. Studebaker's rise and
strength in rails suggested that the
first rally was being rounded out, but
| It was noteworthy that resistance to the
4 heavy tone was fairy we'll pronounced
Early profit taking by those who had
of the explanations for offerings of
stocks and shorts put out fresh lines
to some extent. A sharp break in the
cotton market. extending at one time to
the major influences appeared to be that
the pace of Tuesdays upward move
ment was too rapid and that support
from covering purchases had been large
iy eliminated
From broader point OF view In
fiuental interests look for prices to
work higher despite the momentary re
dictionary trend. In fact the effect Of
a in NJ
might have been much more pronounced
without causing surprise, and on the
whole the market acted better than had
been expected. At the same time call
money stiffened slightly to 81 per cent.
but without much apparent effect on
trading. The profit taking and general
selling in cotton was due not so much
to the development of any special fresh
news as to the technical position and
the desire to cash in prior to the ap-
pearance Of the Government crop report
to-day. Consideration was given to
checking trade demands for cotton by
reason of the sharp advances which had
been scored and to the theory that the
crop report might have been overdis-
counted.
A steadying factor OF yesterday wa
the sharp upturn in the bond mar
ket. in which a renewal of the in
vestment demand carried certain issues
to new highs for the year The buy
ing was fairly well distributed through
on ha
ern Is selling as high as 1o1 q and the
joint 6las making a new high at 1O1X
The new Brazilian Government bonds
sold at 80. Taken altogether the move
ment in bond prices indicated that a
major upward trend had been started
with the floating supply being dimin-
ished by the daily demand from in
vestors.
In foreign exchange the announce
ment that the payment of / 1000, 900, 900
gold marks by Germany. due yesterday,
had been completed led to a sharp ad-
vance in sterling. carrying the QUOTA
ton for demand up to s3.72A, a new
high on the present recovery. Francs
gained three points. but other price
movements were irregular with the ex-
ception of Brazilian exchange. which
added to the gain achieved on Tuesday.
Banking circles were much encouraged
by the contamination of the German
payments with so little dislocation of
exchange rates and by the fact that no
| further payment on that account would
be due until February, when, under
the new arrangement, payments can be
made in kind instead Of cash. with the
probability that the next transactions
will be more or less of a bookkeeping
affair
Another constructive international de-
velopment was the court decision in
Mexico City against the enforcement
of a Carranza decree and. In effect,
restoring American properties to their
owners. That decision was hailed as
recognition OF Mexico and az an lndica-
ton that Mexico would be recognized
soon. Word that agreement IL near
regarding oil taxes and providing a
sliding scale based on the selling price
Of oil came also.
| Cali money, after renewing at 5 per
cent. which was the general rate in
the New York Stock Exchange and out
side. advanced subsequently to u per
cent. at which pool operations ensued.
The iron and steel reviews recorded a
slight Improvement in demand