The New York herald., 1922-02-22
FINANCIAL NEWS
AND COMMENT
Active Buying Makes for New
Highs in StockS-Sterling
at Top of Two Years.

a turnover of about 100000 shares
on the New York Stock Exchange yes
terday supplied a new measure Of the
growth of speculative interest and that
active buying brought many new high
price records for 1921. For practically
the first time since the middle Of De-
cember a connection between the state
of the steel market and the movement
Of steel company shares was seen, but,
as for other departments of the market
1t appeared as though the force Of de-
velopments expected later rather than
those of present moment was the guild
! ing factor in the rise. United States
Steel common scored the unusual gain
of 81 points, closing at its best quota
tlon OF the day. Steel trade reviews
said that a fair increase of pig iron
and steel making occurred in the last
week and that February's outlook was
| for larger aggregate output than that
of January.
/ Although the stock market was the most
! interesting Of all. because of many price
increases Of point to 21s points, II by no
means monopolized the financial stage.
Again sterling exchange reached up to
a new high point for two years, the
| check rate going within a shade of AL
French and Italian rates were less buoy
ant In fact, they Jagged behind Mon
days last figures for time, but went
forward slightly in the afternoon. The
/ buying of exchange on Amsterdam was
! a feature, heavy orders being filled for
| foreign account as we'll as for New
York banks. 1t was possible that part
| of the guilder purchases was based on
expectation that q new loan for a
Dutch dependency would be concluded in
the American market soon. Regarding
sterling's rise. II may be said that re-
cent calculations of bankers who tried
to guess the extent to which the re-
covery from the 4.20 basis would go
have been badly disarranged by TIE
persistent advance. and heav;- snort COW
ering purchases in The iast two or three
days have contributed much to the
movement. But the foundation of the
I exchange market OF course, is built
on much f1rmer material than are cas-
ual speculative transactions. The inn
preston has been strengthened of late
partly by the very appearance Of the
market-that fundamental conditions in
Europe have been better of late than
seemed possible three months ago. It
Is probable that the arrangement for
funding the allied debt to the United
States has had greater influence on
banking confidence on the other side
OF the Atlantic than has been recounted
dian exchange in the last five weeks has
a logical explanation in the fact that
Canada's trade in 1921 showed a mod
crate balance in her favor
Wheat futures went forward in the
morning. but met extensive realizing
sales and receded about cents bushel
| from the best quotations. the decline
leaving May at s1.45 and July at
%i'-oss' VI ~ SSi'S iO"Si '""' 'hSS
were on Monday. Corn, on the other
hand. held its early gains pretty we'll
Cotton receded 20 to 80 points. urged
lower by selling by traders who desired
to be in the open when delivery notices
| for this month went out.
Bond prices were firm, but a notice
] able contraction Of business occurred,
making the turnover one Of the small
est for a full business day this year.
/ AS was expected on Monday, the call
| loan rate was easier. going to Al per
cent. after standing loans had been re-
newed at per cent.