The New York herald., 1921-10-19
FINANCIAL NEWS
AND COMMENT
Stocks Generally Recover, but
Sugars and Pullman Are
Weak Spots.

The general recovery OF stocks yes
terday was mainly the result of the
repurchase of shares sold short the
day before by traders who sought 20
profit by the railroad labor situation.
Buying of that character was in evil
dence early in the session and gained
in volume later. when it was indicated
that the Administration was dealing
with the strike threat in thoroughly
logical WY Practically all railroad
issues cloasd higher than they did on
Monday. and such substantial advances
as ] point to 1is points were recorded
by Great Northern preferred, Lehigt
Valley. Missouri Pacific preferred
Reading and Southern Pacific. The
only really weak spots were disclosed
by one or two sugar shares and by
Pullman Company. the fall of more
than points in the latter being re.
lated possibly to the immediate rail
roaf situation. but more likely con.
nected with earnings and the busines:
outlook. Call money eased from pc,
cent. TO per cent ~
The financial markets SEEMED r.
gather from meagre ,news of happen.
inss surrounding .the rail situation tha,
protracted Strike was more remote
than -hcfore. 1t looks as though the
lh-sraod States Railroad Labor Boart
wa seek first. to find out whether OF
not labor means to abide by it's rulings
and then discover whether the railroads
VIII do the same thing. The Admins
tration naturally wants to know defin.
itely the real influence which the
board is to have. as it would not be
at all In accordance with the Intent OF
tne transportation act of 1920 IL the
prescribed machinery for handling EN-
pioyer and employee differences wa.
set aside as innocuous at the very
start OF the controversy. But the fina
solution of the problems cannot b,
determined. yet. Yesterdays rally II
stocks was merely the familiar after
math or selling for the short accoun
on strike news. and the quiet state
or business showed that the Stree
was waiting for more Information abou
the strike prospect before doing much
in the market. In bonds a stead,e,
tone prevailed than did on the day be.
lore. and several of the Liberty rroun
gained ground.
The course of commodity markets
proved that. although prices on Monda v
were sensitive to the movement OF
stocKs' there were other pronounced in
1luences at work against quotations. and
they continued in operation yesterday.
Wheat futures fell Az to 5 cents n
oushel and recovered very little. The
OBVIOUS explanation for that reaction
prices dropped to cents on Monday
was the. enormous pressure of offerings
on both the American and the Canadian
markets. Prices in Winnipeg fell s
TO nearly 10 cents a bushel, and des-
patches showed that the rush of grain
TO market was being furthered by the
desire of shippers to use to the utmost
water transportation before navigation
is closed for the winter. That speed OF
marketing. naturally. will slow down
soon. but. with the export demand
light. it is problematical whether or no,
prices will feel thereafter the result of
lessened supplies. Cotton accompanied
grain. declining 25 to nearly SO points,
the movement. coupled with the reaction
of the last fortnight. carrying quota
tions to the lowest points recorded in
seven weeks
The foreign exchanges quieted down
after Mondays rather extravagant fluc-
tuations. which. although explainable in
part by the evident haste of holders OF
marks to convert them into more stable
currencies. was STEPPED also in specula-
tive operations. Sterling dropped bacl;
2 cents from it's preceding closing price
and there were reactions in francs,
guilders and other rates. Marks were
alternately weak and strong, but left off
at about Monday nights last price. their
final being .J91a cent.
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