The New York herald., 1922-09-23
FINANCIAL NEWS
AND COMMENT
Stock Market Rallies After
Day of General Weakness
Due to War News.

SO uncertain were the developments
which dominated the financial markets
yesterday that the movements in vari-
souS departments were mixed and con-
fueing and at the close OF the day it
was plain to be seen that Wall Street
events, particularly European political
affairs, were shaping up. No little dis
turbance was occasioned by publication
during the day of press dispatches to
the effect that the army of hemal had
invaded the neutral ground on the
Asiatic sile of the Dardanelles.
Foreign exchange rates declined
rather sharply on publication of the
new development. This was construed
in a rather pessimistic way. for up to
the present the foreign exchange mar
ket has been the least affected OF all
primary markets by the, disturbing
news which has come from time to
time from the Near East.
The depressing influence on the stock
market was not as lasting as similarly
unsettling news had been earlier in the
week and in the late trading stocks dis
played a tendency to rally which
brought many of the active leaders up
to points above the closing figures of
Thursday.
Professional operations continue to be
"a dominating factor in the stock mars
ket, fbut at the same time there has
been quite bit OF liquidation OF stocks
for public account. Wire houses report
some selling particularly from the West.
where unfavorable news developments
in Europe almost always find first re-
Election In a liquidating movement
The rally. however. was very sharp
and indicated that any sustained buy
ing movement would find a great scar
city OF offerings. This would sugxeSt
that the decline Of this last week has
shaken out OF the market many weak
holders Of stocks and that their hold
ings nave passed into stronger hands.
Stocks against which pressure has
been the heaviest were those which re-
sponded quickest and easiest during the
course of the rally. offering some idea
Of the extent to which professional oper-
ations have entered into the market as
a big factor.
Much stress was laid yesterday on the
credit situation. Call money ranged
from to 5N per cent. which compared
with a per cent. rate on Thursday.
Bankers familiar with the credit situa-
tion asserted that the highest rate of
the year--6 per cent.--is entirely un-
warranted at this time.
With tremendous Government borrow
ings in the wind at what will be an
extremely low rate OF interest for the
amount involved, It is difficult to under
stand how the market for money can
be held up at high levels for any extend
ed period.
Money, in the opinion of leading bank
er,s, will not be really tight for long
time to come The present furry Is one
which can be expected from time to time
as result of circumstances which DOM
mate the market for the moment. There
has been huge shifting Of funds for
Government purposes and for industrial
use and even If the extremely high rate
of per cent. is beyond reason. there. is
an excuse just now for at least some
disturbance in the money market.
The wheat market responded sharply
yesterday to the new war discussions in
Europe with an advance at one time Of
more than three cents.
Liberty and foreign bond issues de-
clined slightly, but in the rest of the
list irregularity and dullness prevailed.
In cotton there was very little busi-
ness with final prices a few points
above Thursdays close.