The New York herald., 1921-09-10
FINANCIAL NEWS
AND COMMENT
Markets Continue to Move Up
ward - Equipments and
Rails Are Leaders.


yesterday. much buoyancy being evident
in the price movements OF stocks and
cotton. while wheat futures. after an
early period of reaction. advanced with
great deal OF strength. Railroad equip
naent and tobacco shares, stood in the
forefront of the upturn. their gains run
ming from II TO points and. through
burst OF buying near the close OF the
market. many steel. petroleum and mis-
cellaneous manufacturing company
stocks left off at point to , points
above Thursdays final quotations. ii was
that rush OF purchases in the last hour
which stamped the real character OF
business and impressed the Street with
the thought that. even though only mod
crate changes for the better were being
reported in important lines OF industry.
speculation was seeking to discount an
expected Improvement in autumn pro-
duction and trade. The list of stocks
traded in was broader than it had been
in recent days. and in the bond market
buying reached out in directions in
which it had not appeared before. An
interesting item Of information was
found in the estimate that the new is
sue OF $500. 100000 OF United States
Treasury notes and certificates would
prove to have been heavily oversub-
scribed when the returns were in.
Such an advance OF stocks IS yester-
days could hardly be brought about
without the assistance of organized
pools. The process of lifting upward
marks OF those activities which we're
SO familiar factor in the boom Of 1919.
But the fact that bold spectators had
been persuaded by altered sentiment of
the last three weeks to change their
tactics detracted nothing from the inn
preston, gained Of late in banking quar-
ters. that industry and finance had
passed some of the most difficult spots
of this year. Despite the violent set
backs of cotton on Wednesday and
Thursday and the moderately reaction
airy tendency of stocks on Thursday,
the dominant force in the markets OF
this week has been OF the sort which
relegates past events to the past and
aims to anticipate a real change Of con-
ditions in the future.
The experience of other markets indi-
Gates that unless the public is convinced
OF the permanency of price movements
there are likely to be reversals now and
then. In the case OF cotton. which rose
So to 1876 points yesterday, it is not to
be forgotten that the processes of spec
ulation for the rise are likely for con-
siderable time to come to be opposed by
rapid marketing Of the crop. There are
old bank loans in the South to be liqui-
dated. and 1t is plausible that lenders
and borrowers will be anxious to cut
| down such loans with despatch when
cotton may be sold at prices which
entail good profits. The attitude Of
spinners toward crop and carryover
Of about $4,000, 900 bales has not been
determined. and probably the autumn
will be somewhat further advanced be-
fore cotton manufacturers here and
abroad are able to decide whether sup
plies Of cotton will be short enough to
cause sustained advances from current
levels.
Call money went from per cent. to
5l5 per cent, reversing the movement
OF the day before The change toward
firmness, however. meant little. 1t
would not be surprising IL there should
be additional hardening OF the rate prior
to the September Is payments, but there
is nothing In sight at the moment to
alter the belief that money rates will
continue relatively easy for several
weeks. An influence which could
| change the complexion OF the money
market would be an extensive growth
Of general business. signs OF which are
still wanting.
The foreign exchanges worked lower.
although the German rate disclosed
none OF its decided weakness OF Thurs
day. At 1.02 cents the mark was frac-
tionally below the final rate of the day
before Sterling lost a quarter cent,
closing at s.721a.