The New York herald., 1921-09-21
FINANCIAL NEWS
AND COMMENT
Declining Tendency Of Stocks
Continues-BOnd Market
Makes Further Gains.

The action OF stocks yesterday dis
closed somewhat more clearly than be-
fore factor which has tended to re-
su ct business since the recent ad-
vance eliminated. That influence Is
the caution displayed by the public in
entering into speculative contracts for
the rise. 1t has been no secret In mar
ket circles that one or two, perhaps
more, groups OF traders practically
shaped the course OF prices in the last
half OF August and the first week OF
September by making the most OF the
distinct change of sentiment which ac-
companied the rise OF cotton quotations
and the appearance of undoubted signs
OF altered business conditions. The effort
to send prices forward was eminently
successful. but it remained for the per-
manence of the movement to be estab-
lished by a broad public participation.
When that failed to appear--and the
moderate volume of daily trading has
shown the absence OF outside buying on
a substantial scale--it was natural that
the market should lose some OF its snap.
Yesterday the declining tendency which
affected industrial issues on Monday
again held sway. many prominent manu-
featuring company stocks receding a
point to points.
The market movements of stocks and
commodities were decidedly uneven. In
dicating a situation which frequently
arises after period Of active specula-
ton when traders are seeking to sense
future developments with a bearing on
prices. Cotton futures were first bid
upward 65 to 81 points. only to be
pressed back again by profit taking and
short sales until the final lineup showed
net declines of z to II points. Wheat
futures also were strong for q time.
gaining IN to 31a cents a bushel, but
most of that advance was lost before
the close. As far as the application Of
economic events was concerned, 1t was
not clear that any of a sort to promote
liquidation were present.
The fact that a speculative attempt
to capitalize changes of sentiment and
signs of business betterInent has slowed
down does not affect the impression,
which is fairly widespread, that indus
try is on the mend. The level Of stock
market prices prior to the reaction of
the last few days showed that the ad-
vances OF four weeks probably had dis
running somewhat ahead OF It Com
modlties are likely to be directed by
basic conditions affecting them, with
less reflection of the work of specula-
tive cliques, as some of the statistics OF
cotton supply the foundation Of abrupt
and extensive price swings and the time
is drawing near when the relation of
world demand to actual supplies OF
grain will be discernible.
The rise of bonds continued; IN fact.
developments of the bond market were
much more interesting than were those
Of stocks The speculative imagination
very clearly was at work in Mexican
Government issues. sharp gains under a
sudden expduslOIl VI puyAh oAoWAHS
that the market was considering possi-
BILE events of constructive nature in
Mexican finance. Liberty bonds OF sew
eral classihcations and the Victory notes
reached upward to new high points for
the year and in the outside market there
were substantial advances of municipal
bonds.
The activity and strength of bonds
are running parallel to the movement OF
money rates into a poslti5n Of increas-
ing ease. Call loans were renewed yes
terday at Al per cent, the lowest
charge since August 1. and a greater
amount of funds was offered than the
demand could absorb.
European exchanges were lifeless and
price changes were mostly slight, but a
strong tone of Far Eastern rates seemed
to reflect better business outlook in
India, whose crop prospects appear good.