The New York herald., 1921-11-10
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Gain Under
New Buying-Quick Bond
Sales Aid Sentiment.

| The stock market contained action
| yesterday OF the sort which stirs the
speculative imagination and In bonds
there was evidently the same large scale
buying that stamped last weeks DEAL
ings as part OF a great period OF ac-
| emulation for the sake OF high interest
returns. Quite likely the strength OF
industrial shares, as we'll as of several
rail issues. reflected the impression made
on the financial community by the alb
sorption OF s3o000,000 OF new bonds
during the morning Stocks presented
a rather Jagged front in their rise, one
group being advanced at a time. while
others stood still waiting their turn, but
in the final hour the upturn became
smoother under heavy buying, and at
the end Of the day oil. steel, railroad
equipment. automobile mad other issues
on the New York Stock Exchange were
115 to points higher than they were
on Monday. The power OF the advance
was not affected by the movement of
the call money rate from 5 u per cent.
to per cent. hardening trend which
evidently was connected with a demand
for accommodation to carry large blocks
of new securities during the time OF dis
tribudon.
The stock markets Improvement was
somewhat remarkable inasmuch as the
influences behind It were the same ones
that had been under discussion for a
month. But experience has shown that
factors underneath the changes Of quo
tatlons are frequently cumulative In
their effects and on that ground the
strength OF petroleum shares--severai
Standard Oil stocks in the outside mar
ket gained 10 TO IS points-could pe
attributed to the advances Of crude oil
prices announced lately with their
natural product of enhanced prices for
certain refined derivatives. The short
interest in Mexican Petroleum found the
going decidedly rough after the Stree,
heard of new well OF large production
brought In by the company In a field
in Mexico, which has been the subject
Of hot debate between believers and nom
believers in the efficacy Of salt water as
a destroyer of oil production and a dis
turber of stock market campaigns. Th.
sharp bulges noted among petroleum ami
other Industrial issues indicated that the
retirement of short lines had much to
do with the strength Of prices.
While stocks were advancing cotton
futures were being forced back an aver
that market, however, were connected
directly with internal matters having
to do with the report on the amount Of
the staple glnned to November 1. The
figures indicated that the Governments
last estimate Of this years crop was
much below the actual Yield. Ginnings
comprising 6,646,000 bales were IO6.O
bales more than the Census Bureau had
reckoned the entire crop would be and
there are probably several hun14 I'd
thousand bales to be prepared for mar
ket. Yesterdays report showed that
cotton traders had full Justification for
heSitating when prices got above 22
cents a pound in September. The pre-
dicted yield Of a month ago had ap-
peared to many as likely to be found too
low when all the returns were in.
The weekly steel trade reviews were
constructive TO the extent that prospee-
tive rail orders were dscribed as amount
ing to more than 100000 tons. and tho
news that ingot production In October
was more than twice as large as II was
in July, the month OF the most pro-
nounced lethargy Of the year. helped
carry the steel company shares upward.
The rise In Steel common to SO estab-
lished Il new high price for the current
movement. The steel trade will soon be-
running into what usually are rather
lean months. and as some prices con-
tinue to wabble it will be interesting
to study profits from month to month.
Sterling exchange advanced a full
cent to the pound but the days feature
was q vigorous rally of the German rate,
that quotation going from "a Ia cent to
40 IA cent q mark. There Is much
going on behind the scenes In regard to
/ reparations plans, which is likely TO af-
! feet the exchanges soon