The New York herald., 1922-05-03
FINANCIAL NEWS
AND COMMENT
Industrial Stocks Are Strong
in Spots-Cotton Draws
Most Interest.


eral decidedly strong spots, especially
among petroleum. automobile, copper
and public utility issues, but financial
attention was attracted largely from
securities to an active and very sturdy
market for cotton futures. In the de-
mand for cotton contracts. the supply
of which was inadequate from start
TO finish. it was evident that unfavor-
able weather news was a factor. But
is was probable that discussions OF
cotton quotations had dragged along
monotonously with few signs of life
since the New England textile strike
began two months ago had much to do
with the days speculative buying. The
May option was carried upward more
than S. a bale at it's highest point,
equivalent to a cent a pound, and the
others left off a half cent to three-quar-
ters cent more than Mondays last prices.
The vigor of cotton's recovery Is
shown in the statement that the full
advance from April to Yesterday
morning was less than that scored in
yesterdays upturn. The May option
at 1870 cents a pound was higher than
it had been since last October and was
cents moro than the years minimum.
The Department Of Commerce esti-
mate on Monday that the world would
consume 21,0O000 bales of cotton In
tLot
plies might fall 100000 bales short of
covering the amount used UP drew at
tentlon sharply to business conditions
in many countries. Possibly the spec
tacle of rising quotations lent stimulus
to share prices, as the market had been
watching keenly for signs of better
business. since many current facts an
plying to steel and motor cars began
to lose force as speculative influences
last week. World consumption Of cot
ton on the scale mentioned would seem
to imply larger buying power in
Europe and Asia than had been ex-
pected.
Dealings in stocks followed much the
o.
ing bid upward for time and then
left alone while other departments had
their turn. The Studebaker Corpora :
tion's excellent quarterly statement had
more effect on purchases of Its stock
than 1t did on Monday, on which
traders professed to be disappointed
because more income had not been di-
verted from surplus to share owners.
Profit taking held independent steel
issues back and the oils were affected
in the afternoon by sales for the same
purpose. Royal Dutch. however, cung
tenaciously to an early bulge of more
than points, even when news came
that the Soviet deal with Royal Dutch
Shell interests on Russian production
was less comprehensive than overnight
dispatches had suggested. Little in
formation of economic Importance has
come from the Genoa conference and
that little. like the dispatches about
Russian oil, has been so altered by sub
sequent details that the whole situation
remains highly confused. The foreign
exchanges continued the even tenor of
their way, sterling displaying a firm
tone. while francs and lire held to about
the level of Mondays last figures.
The hardening of call money from
41h to per cent. in the afternoon.
following a per cent. opening. may
have a dampening effect on bonds. but
the probable cause OF n trend more
sluggish than that of Monday was the
large new issues of recent days and
knowledge in the market that new ones
were to come out rapidly. Liberty bonds
cased off. Corporation bonds. however
held firm despite slackenlng OF business,
and strength in Interborough Rapid
transtit 5s and several foreign Gov
ernment issues was again evident.