The New York herald., 1922-11-16
FINANCIAL NEWS
AND COMMENT
Constructive News Accelerates
Movement for Rise in the
Stock Market.

A series or constructive Developments
such as a number OF stock dividends
increased dividend ratea &o.. exerted a
favorable influence In the stock market
yesterday. A recovery from the extreme
lows of Tuesday was q natural develop
ment and it needed but the added Inn
petus supplied by the days news to ex-
tend the rally from one to seventeen
points. The extreme advance was made
by National Biscuit IN reflection OF a
new dividend rate OF ss share on the
new stock which Is equivalent TO SCI u
share on the old stock traded In on the
New Yors Stock Exchange.
For the most part, however, tho stock
market was largely in tho hands OF pro-
fesslonal traders After a strong OPEN
Ing there were evidences OF further at
tempts to force securities TO lower
levels. Because OF the fact that there
was considerably less stress selling than
on Monday and Tuesday and also be-
cause stocks were at so much lower
levels that buyers were more readily
found, these efforts met with little sue
cess and professional operators did a
Characteristic turn about and played for
a rally.
A far greater Significance than the
quite meaningless fluctuations Of stocks
was the extraordinary strength OF COM
modify prices in the late trading. Do
cember wheat advanced more~than two
cents a bushel getting up to sl.is&. A
similar advance was made In other sec
tions OF tho Chicago grain market Cot
ton. after early weakness which reflect
ed operations for short account more
than anything else, rose sharply IN the
late trading, final prices being from
forty TO eighty points above the days
lows
Tho persistent strength IN the mar
kets for agricultural products has a far
broader significance than is indicated
by the bare figures OF day to day fluc-
tuations. In the months of depression
which ended about a year ago. one OF
the principal causes OF worriment
districts of tho country to secure for
their products prices which were high
enough to give those districts the buy
Ing power they must have II prosperity
were TO reign. Now. however. with
prices for virtually all commodities sub
stantiaIly above the lows OF that period.
ii Is reasonable to expect that the
farmer win DO able TO contribute his
share to the general prosperity OF the
country-and a good share II Is, too.
Like the stock market the market for
bonds also displayed a much better
tone. Foreign issues which have been
under extreme pressure In tho last few
days rallied sharply. On the other
hand, Liberty bonds. with one or two
exceptions. were rather soft.
1t was rather difficult TO understand
why United States Government war
loans should be under pressure while
the rest OF tho market was moving high
er. The likelihood OF further Govern
ment financing next month may have
been a factor. but this has been known
and discussed for long time and really
should not interfere with the course OF
the market at this time.
Wall Street still feels a bit nervous
about tho program of taxation which the
new Congress may attempt to put
through next year. Reports that the
new element In Congress will make radi-
cal changes in present tax methods
through ievies on stock dlyidends. sur
plus funds, etc.. are very disQuieting. to
say the least.
The weekly steel trade reviews chron-
icle the further improvement In the ratio
of operations In that industry. Foreign
exchange rates moved within narrow
limits and changes were without signi-
ficance. Call money again loaned at 8
NOR cent