The New York herald., 1921-10-21
FINANCIAL NEWS
AND COMMENT
Stocks Recover as Fears of
Strike LeSsen-Oils Lead
Markets Advance.

! AS many indications pointed yesterday
toward an adjustment OF the railroad
situation without a strike. the stock
market turned to other matters. Enough
constructive material was discovered to
cause rapid covering of short contracts
which resulted In the establishment OF
several new high prices for this year
among Industrial issues. Tho railroad
group also was strong and although no
great activity developed anywhere the
fact that prices retained their gains
without much yielding from best quo
tations at the close showed pretty clearly
that the market had thrown off the re-
pressive influence Of possible transpor-
tation troubles. The news from Chicago
was impressive in one respect, namely.
that prominent union leaders were lay
ing stress on the chance Of a settlement
whereas before they had voiced for pub
lie consumption little beside plans for a
tieup Of many lines.
The improved state OF sentiment was
reflected In other markets beside stocks
and bonds Cotton futures rose briskly,
several options advancing nearly so
points, or half cent a pound. while
wheat after fluctuating broadly. paused
at practically It's levels OF Wednesday.
Inasmuch as those markets have moved
in concert during this weeks unscttle-
ment. the question whether or not pure
speculation has not had much to do with
all of them, speculation which dealt less
with particular economic developments
than with the urge to take advantage Of
startling possibilities described in the
news may be raised. But It Is quite
of shipments in advance OF rail strike
oversupplied the market with offerings
and the steady retreat of prices also may
have been connected with surveys OF
crop prospects in other countries. AS Far
as stocks are concerned. the bears have
reaped very small profits for their ef-
forts of this week.
The industrial item which had much to
do with strength OF stocks was the fifth
advance in a month in the price OF
Pennsylvania crude oil. Petroleum
shares on and off the New York Stock
Exchange moved forward sharply after
that advance became known and manu-
featuring company issues felt the i'm.
petus impaired to the former. The mar
ket is willing to believe that the per-
sistent recovery Of oil quotations IL one
of the heralds of expanding business.
Railroad equipment stocks went higher
than they did on Wednesday, one or
two scoring sharp advances. and it was
only in Republic Iron and Steel, among
the active issues. that weakness was
seen. 1t was explained by the Republic
Iron and Steel Company quarterly re-
port, issued on Wednesday and which
not only showed a heavy deficit for the
third quarter but also recorded marked
fall of bookings between June 30 and
the end of September.
Quite likely the days rise of sN
cents In sterling exchange which car
ried the quotation to the highest point
since May "a, was partly response to
the statement by. Premier Lloyd George
on Wednesday on the necessity for Eng
land to stimulate international trade.
even though considerable risk must be
run in granting credit to buyers OF
goods in certain countries. The action
of the German exchange rate seemed to
show that speculation. which undoubt-
edly has had much to do with It's ex-
traordinary fall in the last fortnight.
had quieted down. The fina! quotation
Of .6S Of a. cent a German mark was
I51s points more than the lowest one of
this week. With the exception OF ster-
ling's rise. the chief point Of interest was
an Improvement in Chinese rates, which
was connected with another upturn of
silver
The Federal Reserve statement con-
tanned changes that are always expected
in the week following large United
States Treasury operations. In contrast
with last weeks loss of nearly 100000
In gold holdings, there was an expansion
of s43.299,000 in yesterdays report and
declines OF s79.723.000 and s35.44e.0 900
respectively In bill holdings and Reserve
note circulation. the reserve ratio con-
seduently going from CSC per cent. to
1913 per cent. In New York the ratio
leaned upward 6 per cent.