The New York herald., 1921-11-17
FINANCIAL NEWS
AND COMMENT
Stocks Show Marked Strength
and Sterling Exchange
Rises to 81.

The two outstanding features OF yes-
terday's financial markets were the pro-
nounced strength of stocks and the riss
of sterling exchange 10 s4 pound for
the first time since the third week Of
May. The movement OF London ex-
change could be ascribed partly. to the
encouragement which all the markets
have received from events In WASH
ington. but It IS to be borne in mind
that British exports have been gaining
ground since the costly coal strike was
ended. When sterling reached upward
to the 81 level in May the outlook for
enlarged trade was less depressing than
it had been during the two preceding
months, but the walkout OF coal miners
worked TO stop the advance. The out
look for q growth Of world trade Is now
considerably better than II was In the
spring and It is certain that the inter-
national markets are looking hopefully
for lasting influence for improved
business TO come from the Conference
for the Limitation OF Armament The
exchanges as a whole were somewhat
irregular, q firm tone marking most
European rates.
A much more diversified list of stocks
participated in the advance than In any
day Of last weeks rise. Steel shares
pretty well destroyed the last vestigc
Of belief IN speculative quarters that
real harm for producers Of armament
would como from q cessation Of naval
construction. They advanced a point
to more than 2 points. Oil stocks led
the advance. recovering with much force
from the severe depression OF the two
preceding days, but It was railroad and
copper Issues which added practically
new aspects to trading. Shipping stocks
also were prominent and railroad equip
ment issues reflected news of substan-
tial purchases OF new cars, either COM
pieted or In process OF negotiation.
Traces OF rapid short covering were not
lacking. especially in Industrial stocks
which had been neglected of late. The
impression that the short interest was
still large prevailed.
Some interesting comment on steel
conditions was presented IN the weekly
trade reviews. one item about prices In
the Iron, Age being worth especial con-
sideration. That periodical noted that
| the weakening Of prices this month rep
resented the efforts Of mills 'to keep up
| ~ - fot -
concession OF 81 or So ton being more
than made UP by the lower cost of
fuller schedules" In other words. the
plants have had fair degree Of suo-
Of output and. provided that new or
ders later counterbalance tho amount
OF old contracts worked UP, the outlook
for profits should improve materially
that nowhere except in the field OF rail-
road equipment construction are real
signs Of expanded purchases Of steel
evident.
1t looked as though the rise Of ster-
ling had stimulated an upturn Of cotton
and grain quotations. Cotton At It's
best prices OF the day was about IL
cent a pound higher than It was or
Tuesday, retaining little more than Sc
per cent. OF that gain to the end o;
trading. Wheat futures advanced ir
Chicago 2 cents to nearly 8 cents q
bushel. Those markets, however, were
decidedly irregular at times. cotton
starting with weak tons. and sentf'
ment In regard TO the next few weeks
was decidedly mixed. The cotton sit
uatson seems likely to DO directed
mainly by reports on the actual yield
Call money stood at 1-2 per cent
the FIRST time that the renewal rate had
been so low since October 21. Supplies
Of tirne funds were reported somewha,
larger than they wero on Monday and