The New York herald., 1921-12-10
FINANCIAL NEWS
AND COMMENT
Stocks Generally Drift About
Foreign Exchange Recov-
ers After Reaction.

All financial markets yesterday
lacked new Influences with applications
to price changes. Stocks. except the
copper group and several Industrial
issues. drifted rather aimlessly. The
latter appeared to be directed upward
by pool opei ations. Bonds continued to
ease off. although contraction In the
volume of business, compared to that OF
the active. days of last week. suggested
that sales were not being pressed. The
foreign exchanges first receded and
later went chead. sterling reaching a
level slightly higher than It's maximum
of Thursday. European exchanges scored
a general recovery and held their gains
very well at the close. Cotton and
grain were merely irregular. Call
money went from 5M per cent. to 6
per cent. in the afternoon.
Although foreign exchanges found no
new factors to support them. 1t was
probable that further consideration of
European dispatches relative to the
pending conference In London between
British and French authorities had
something to do with the recovery 1t
was supposed that that meeting. which
suggested broadly that the recent visit
Of Rathenau and other German repre-
sentatives to London had gained hear
ing on g. proposal to tighten reparations
arrangements, was preliminary to the
coming general meeting of European
and American financial experts. But
the implication In news from abroad
which made the most impression on
business in the exchanges was the one
that France was softening her attitude
toward reparations. 1t was believed
that DIT least large part Of the 5OO.-
100000 mark instalment due by January
15 would be paid In goods, with the
possibility of a postponement Of money
transfers In January and February pay
ments. There was, however. a COM
plete lack Of definite information on
the question. Quite possibly. much of
the days buying was short covering.
1t will be considerable time before the
of rates and whether or not vague sug-
gestions about a Encouragement Of
reparations payments had most to do
with the rise. or whether or not the
upturn meant a growing realization In
the market that the financial situation
Of several Of the western European
countries was showing definite improve
ment are known.
Brisk advances In Corn Products Re-
filming and in several independent steel
companies shares during the morning
induced active short covering later,
bringing the best prices In the final
hour. Railroad stocks seemed to show
that they had become Injured to fresh
news about wages and rates. as there
was no response to the meeting of
operating men OF many lines who de-
cided to press before the United States
Railroad Labor Board plan for fur
ther wage cuts running from 10 to 90
per cent. The broad list OF Industrial
specialties dealt in during tho day was
inclined toward lower prices, including
many preferred stocks. AS the latter
had been carried upward In the wake
Of bonds during November. 1t was nat
ural that realizing sales should spread
to them from the bond department in
due time. The force behind the rise
of copper stocks was the report of Gales
at IA cents pound for delivery next
month. With accumulated stocks grad
ually receding. 1t would not be sur
prising IL production was increased
from the present extraordinarily low
tonnage reported in the last four
months.