The New York herald., 1922-12-22
FINANCIAL NEWS
AND COMMENT
With Rise of 64 Points Mex
Pete Leads Stock Prices
to Higher Levels.


showed itself TO be under the domina-
tion OF professional spectators yester-
day. their operations were conducted
almost entirely on the constructive side
and the general list, together with the
bond market. commodity markets and
foreign exchanges advanced substan-
TALLY over the last prices of the pre-
ceding day. There were a few sensa-
tional gains, notable among which was
Mexican Petroleum, which scored an
advance of 64 points to a new high
record for all time of S22. The amazing
part of this performance was that it
was completed on transactions which
aggregated only slightly more than
1000 shares.
Several stories were circulated to ac-
count for the jump in Mexican Pete, but
none of them bore the stamp of official
confirmation. One of the most widely
circulated and at the same time most
plausible stories was that the Pan
American Petroleum and Transport
Corporation, which controls all but about
per cent. of the Mexican Petroleum
shares. had decided to wind up the
affairs of its subsidiary as an indepen-
dent concern and had taken steps to
buy the remaining outstanding stock in
the open market. Two offers of ex-
change. of Pan-American shares for
Mexican Petroleum shares having failed
to attract some $4,000 shares of the
latter into the Pan-Americah treasury,
open market purchases appear to be
about the only recourse the parent cor
poration has left to acquire all the out
standing stock.
Stories of short squeeze were riui-
culed. In the first place it is incon-
ceivable that any sane trader would sell
a substantial amount Of the stock short
knowing, as he must know, that all but
a relatively few shares are in the treas
ury of the parent company. 1t would
be speculative suicide for any operator
to place himself in such a position and
| If any short interest at all exists in
Mexican Petroleum. which is extremely
doubtful, it certainly does not exceed a
comparatively few hundred shares. OF
course it is possible that some of the
buying yesterday was for account OF
spectators who are expecting tremen-
dous cash distribution. This. however
| is likely to prove an unwarranted eX-
pectation for it is known that the policy
of the Pan-American-Mexica Petroleum
management will be to make future dis
tributions on the subsidiary shares
through capital issues.
| Aside from the big advance in Mexi-
can Petroleum, interest in the stock
market was at a low point. The same
was true Of other markets. although
they all maintained firm tone. Bonds
were quite strong, with certain indus
trial issues in considerable demand.
Liberty bonds fiuctuated narrowly and
changes were highly irregular.
| In the grain market quiet strength
was the feature. While wheat prices
failed to duplicate the $1.2S high record
of the preceding day, they were Arm
nevertheless and closed with a net ad-
vance over Wednesdays final quotations.
The same was true with respect to oats
and corn. In the cotton market dull
ness marked the days operations and
| final prices were very slightly changed
from Wednesdays close.
! Foreign exchanges, particularly the
rate on London, advanced sharply in
yesterdays trading. The hysteria which
marked the advance In sterling exchange
last week appears to have almost COM
pletely disappeared. Nevertheless. there
was substantial demand for sterling
bills and the advance to above 4.64 was
ample evidence of underlying strength
Indications are still at hand that little
of concrete nature may be expected
of the market Immediately. Call money
fuctuates around the Az and per cent.
level and. while that rate Is not one
which can be called high. nevertheless It
Is sufficiently large to emphasize the
tremendous demands which business and
industry are making on the country's
surplus of cash.