The New York herald., 1922-12-20
FINANCIAL NEWS
AND COMMENT
Short Covering Sends Stocks
to Higher Leycls-Dull
Markets Expected.

Stocks rallied sharply yesterday in q
market which was largely in tho hands
of professional operators. IT was quite
apparent that the selling OF the preced-
Ing day In connection with the Stock
Exchange failure had been absorbed in
very satisfying manner. but It was
also very plain that extensive purchas-
Ing of capital securities from other than
professionals should not be expected at
this time. There is q suggestion in the
character of the current market that
dullness and Inactivity will mark deal
ings for a time. except on such occa-
sions- when fthe professional group in
control may deem It wise to create for
the moment some special activity on
one side or the other.
The driving in of a short interest
probably. accounts for a very large pro-
portion of yesterdays gains. Certainly
there wfs nothing in the news develop
ments which would warrant an upturn
Of from one to four and FIVE points. As
matter OF fact the specific statement
that nothing in the shape of German
loan could be expected at this time
might have been calculated to depress
the market Nhen it is considered that
reports, OF such loan having been
negotiated were largel responsible for
the, sharp upturf, week, Without
some new impulse TO create fresh In
terest in the market there seems to be
little likelihood of any immediate activ-
ny which will carry with 1t anything
OF Significance.
The bond market patterned itself
after the stock market. Total dealings
fell short of. s1o,OoO.ooo and. while the
majority of the high grade issues were
firm. the interest which makes for ac-
tivity was entirely lacking. Liberty
for the most part were exceedingly mar
row. Some new bond offerings which
were announced yesterday were absorbed
more or less easily. In the commodity
acute interest.
| The grain market held well it's ad-
vance Of the preceding day, some Of the
| options in corn and oats even advancing
perhaps greater than any other because
! cf reports from Washington that some
extremely favorable news respecting
credits for the agriculturist might be
| th~, two tr- 40 ,raf
fiuctuated within narrow limits with a
minimum of activity and closed with
little change from Mondays last prices
Foreign exchanges were irregular
weak tone. Sterling got close to 4.s2
while French and Belgian rates ad-
vanced. At the same time there was q
tendency on the part Of some other ex.
changes to work to lower levels after a
week OF extraordinary strength. Aside
| from the statements concerning the pos
sibility OF an immediate loan to Ger.
many there was nothing to be found ir
the days developments which would be
apt TO cause q recession in European
exchanges.
The failure Of the Department Of Com
nerce In the last two months to- give
out import figures simultaneously with
| those of experts has made an analysis
of the latter difficult. 1t is of interest
to note. however. that the imports oil
! gold for November were the smallest
of the year. except in the months o!
April May and June. Asc impaired with
July, when they were $42.9S6,727. the
November gold imports showed a de-
cline of nearly s25.00o.000. The bis
drop in gold exports from s17,5s1.5 sos
| in October TO s3,431.065 in November
reflects largely the return of Canadian
currency to a discount in New York
after a brief period during which II
| was at a premium.