The New York herald., 1922-07-12
FINANCIAL NEWS
AND COMMENT
Higher Prices Reflect Better
Feeling Regarding Foreign
and Strike Situations.

The generally firm tone of prices In
most OF the markets yesterday was evil
IDENTIFY the product OF three major fac
tors first. lessened tension in financial
circles over the German situation sec
ond, an impression that favorable news
would soon be forthcoming in respect to
the railroad and coal strikes and. third.
the reexamination by speculators in
stocks of underlying Industrial activities
which were found to be satisfactory In
many particulars.
Regarding the German reparations
md relations between France and Ger
many the action of the exchanges and
certain European bond issues suggested
that last weeks scare over threatened
German collapse had been toned down
to a point where hysteria was replaced
by cold calculations OF the result. All
along the foreign markets have been
more concerned with the attitude of
France toward a German default In
reparations than with a possible default
itself. and broad indications in yestcr-
days news dispatches that the French
Premier might acquire a shade of len
iency toward German requests provided
certain creditors Of France were lenient
in turn quite plainly aided in carrying
franc exchange upward nearly 20 points
for the day and putting the rate close
to a quarter cent above It's recent mini
mum price. The quotation went above
cents for the first time In fortnight,
closing at 1884.
1t would be going too far. probably.
to believe that the recovery OF the
French franc and distinct rallies OF
French and Belgian bonds represented
any sudden change of affairs in Paris.
Improved sentiment urged considerable
short covering and speculative repur-
chases of exchange and bonds undoubt-
edly had much to do with the upturn.
But the point worth considering is that
the markets turned upward despite the
receipt of definite information that Ger
many would seek to hold back cash rep
arations payments for at least two
years. The course of prices reflected a
calmer state Of mind In market circles
than a week ago and a tendency to en-
phasize possibilities of readjusNnents of
allied and German debt and interest
payments within the next few weeks.
Quite possibly the arrival of Jean ".
Parmenlier, French treasury expert, In
this country for the purpose of confer
ring with the Debt Refunding Commits
sion had something to do with the mar
ket attitude. o
Stocks, while dull were strong In some
directions at the same time. that selling
for the short account was easily alb
sorbed in others. Unofficial figures
about motor company earnings and the
profits of one or two manufacturing
companies in other lines betokened re-
suits in the first half of 1922 quite diff
ferent from those In the wretched busi-
ness year of 1921. Motor shares and
stocks of leather. steel and petroleum
featured the Industrial list
with gains of point to points and
number of rails advanced more than
point The stock market has not yet
viewed the shopmen's strike as a serf-
Gus and long lived handicap on railroad
operations, and spectators have been
inclined to weigh more heavily the long
pull prospect of industry than the fac
tors working for temporary Impairment.
The July and December wheat op-
tions advanced to 3M cents "a bushel
and corn prices went upward accent and
more. The Governments crop report for
June, issued on Monday. was below ex-
pectations. although indicating good
yields. Cotton finally left of to IA
points higher for the day. practically
the first worth while rally in a week.
The supply of call money was consid-
erably in excess of the demand. the rate
going to 3h per cent In the afternoon.