The New York herald., 1921-09-08
FINANCIAL NEWS
AND COMMENT
Stock Market Moves Forward,
While Cotton List Falls
Points Allowed.

Il
prices, followed by an even more violen,
decline and an irregular rise OF stocks
ard fairly sharp bulge Of grain quo
tations yesterday reflected again the
play OF speculative forces. the perma-
nence of which cannot yet be deter
mined. The great swings of cotton were
In keeping with other periods Of the past
when the markets on both sides of the
Atlantic became concerned over the out
look for supplies Of that staple. Such
an upturn as mad been seen In the rise
of more than cents pound in fort
night brought in many light waisted
spectators whose activities were pro-
tected to a degree by the placing OF
stop loss orders. When prices became
reactionary on realizing sales after the
abrupt gain OF 150 to 1S5 points. or
$3.50 to S9.o5 bale. in the first quarter
hour, the decline was made more pre-
cjpitate as those stop orders were
reached. The reverse movement at
tanned its greatest force In the final
half hour, when the 200 point limit for
single days movement was reached,
and last quotations were ~ to 60 points
lower than the day before.
Although cotton fluctuations were part
of hectic speculative campaign. based
on prospects Of a very short crop. fall
OF $40 a bale in a single days trading
casts doubt on the influence which genu-
Inc spinners' hedging operations have
had in the recovery Of the last three
weeks. In other words, the movements
of this week make necessary wait for
considerable time to determine whether
or not true economic factors. entailed In
the markets for cotton goods are bear
ing strongly on the trend of cotton
prices. What has been determined thus
fur in the rise from III cents pound
in June is that speculation seeks to
point the way. trusting that world de-
mand, which has been lethargic during
most of this year. will awaken and find
supplies rather short
In the stock market flow on realiz-
met with much more resistance than did
similar cne in the cotton market, and
although the Industrial share list was
spotted with unsteady issues at times.
the trend was strongly forward. Rail-
road shares did better than they did
on Tuesday. Great northern, North
ern Pacific, Lackawana, Southern
Railway and several others rising a
point to Az points. The tobacco group
rose briskly and oil and steel shares
easily overcame efforts to depress them,
Mexican Petroleum, in fact. gaining 5h
points net.
Stocks had. perhaps, more construc-
tive events and news to aid them than
did cotton. Call money went to per
cent. after loaning at 51s per cent. dur
| ing the morning, a decline which seemed
to show somewhat unexpected relaxa'
ton in view of the pending income tas
installment payments and the prospects
of an increase in offerings of new Sc
| curities. Steel stocks received support
4 in the weekly summary of conditions
in the industry. For the first time In
nine consecutive months. the output Of
pig iron, reported by the Iron Age re.
corded an increase in August. compared
with that of July, the average daily
production being 10 per cent, larger ir
the former month. That producers are
feeling an improved demand is proved
| in the fact that seven furnaces went
into operation this month or are to bs
reopened before September 10. They had
been closed during August. AS far as
steel mill operations were concerned
during the last week, there was nc
change, but reports of better business
from several sections of the country
were noted. 1t Is probable that the
scramble for orders. which got wei
under way early In July, is having effec'
on bookings. although at the expense o.
prices for numerous products.
The bond market displayed a rising
tendency. especially in Liberty and Vic
tory issues and bonds OF foreign coun
tries. In the foreign exchanges. mos
European rates reversed their move
ment or Tuesday, sterling gaining y
cents TO 371Ss, but the decline of tn
mark rate continued, reflecting the afte
effects OF the costly reparation pay
ments, which threaten to remove tn
moager gold supply behind circulating
notes.