The New York herald., 1922-08-03
FINANCIAL NEWS
AND COMMENT
Stocks Are Held Firmly De-
spite Depressing News and
New Low for Mark.

front yesterday TO depressing news.
which included. besides the unpleasant
aspects OF the strikes. reports OF re-
tarded steel mill operations, a fresh cut
of 25 cents barrel In crude petroleum
and a fall of German exchange to a
new low point under .12 cents.
Share quotations receded only frac-
tionally for the most part under short
selling at the opening and then recovered
practically all the losses and left off
ment of a new maximum high price for
five years by New York Central at 9S u
and 5h point gain by Norfolk and
Western were exceptional movements.
but at no time were the rails weak.
An advance of call money from to
per cent for the second time this week
did not stimulate selling In the last hour.
Altogether the market showed pretty
well that holders of stocks bought earlier
in the year were willing to stand fast
until the situation grew better.
The market clearly decided that the
firm stand of railroad executives against
the return OF striking shop workers to
full seniority privileges denoted q
strong strategic position of employers in
the strike. II anything, word that
President Hardings proposals had been
accepted by shopmen leaders in Chi
cago strengthened that impression.
However. there was a lack Of informa-
tion during business hours about rail-
road plans and silence also from WASH
ington in respect to the Presidents next
step. IL any is to be taken.
The Street was more concerned with
the coal controversy than with the rail
strike, for the point blank refusal Of
operators in four States to discuss a
settlement with the unions on a national
basis seemed to contain elements OF a
long drawn contest.
The foreign situation again came into
the financial limelight, marked in the
markets not only by the decline of Ger
man exchange under heavy sales but
also In recessions of French Govern
ment bonds. Other foreign securities
were weak. Bankers were somewhat
puzzled by the British Foreign Offices
assertion that the payment of BritaiHs
debt to America hinged chiefly on her
ability to collect debts owing from her
European allies. If this Is the British
attitude the reason for current large
GOLD oh bfrvt tn nrk
count of the British Government Is
again obscured, for expectations that the
metal would figure in autumn interest
payments on funds owing to our Treas
ury have been general. The meaning
OF the London statement probably will
become clearer when reactions to 1t In
France are seen.
The strikes unquestionably are be-
ginning to affect the steel and iron in
dustry severely. The Iron Age reported
that this week the Steel Corporations
operations were around 20 per cent. Of
capacity. while independent plants had
gone to 60 per cent. These figures rep
resent sharp declines in four weeks. as
early In July the largest unit and its
competitors we're both around rs per
cent. The July figures rhowed. never
theless, that the iron output held up
well in all of that month. the daily aver
age output being 77,421 tons. against
1901 tons in June.
Cotton futures naturally felt consid-
cradle realizing following Tuesdays
powerful upturn. Spectators were In
clined to be somewhat skeptical of the
Governments latest condition report, In
asmuch as it was so much poorer than
all private estimates of the crop, and
this aided in bringing reactions of s2.40
to s2S5 a bale.