Omaha daily bee., 1922-05-03
Financial

By ALEXANDER DANA NOYE,
OaAhA H. l<s1s1 NHs.

Oasss oes l<ass1 WUs.
New York. May 2.-Sisns OF
diminished interest IN the stock mar.
he, were visible enough today. Al.
though prices were generally higher.
the advances OF . point or more were
scattered. spssmodie and plainly a
consequence OF professional aetiyi.
ties. The bond market was also
strong with q couple OF foreign loans
going into new high ground; bu, tho
distinctly more interesting movement
OF the day Was in the foreign ex-
change and cotton markets. The cot
ton market like the wheat mafke,
OF February. has this week moved un-
der the double influence OF at least
temporarily adverse weather condi-
lions surrounding the new crop aud
ot sudden realization that the trade
had been forgetting some essential
facts IN the old crops supply and de-
mand position. IL was Mondays
government estimate on worlds con-
sumption and carry over" which
awoke the market 10 these facts,
which II nigh, have known before
and the result was today's violent
advance, Carrying cotton prices 6 to
&c bale above last weeks close. The
New York spot price this afternoon
reached 1890 cents a pound; the
highest since the 9th of last October,
and only ] So cents under last falls
high mark. II has been as low as
lo.4Sc this yc&r.
sterlins Near Top.
In sterling exchange today's moyem.n.
az the riss In cotton prices was, in liz
way equally impressive. The hixh rate
OF Nta e az which the market closed
rsprrsentu only half cent rise over
reached since the day. March /. when Il
went 10 the seasons hish point OF SIxll.
Ihis upward movement may have re-.
Elected London's feeling over the later
course OF event. at Genoe uhs other sx-
cnsnses did not move with stsriing). or
" may In soms way have resulted from
the mood inspired by the British finance
ministers budget speech. II IL not al
together clear. however. In what way re-
income tax should affect international
exchange and Sir Robert Horne also de-
elsrcd plainly that the government would
meet without question" the interest on
its debt TO our treasury On general
principles. this should mean large sales
OF drafts on London during the next few
months. Yet II will not have been for
gotten that when an exactly similar incl
dent occurred at this time in 1890 In
cash redemption of the Anglo French loan,
and when inferences adverse to the ster-
ling market were drawn accordingly. the
rate forthwith rose above the four dollar
mark for the first time since the war.
Prices show Increase.
Two interesting side lights on the
economic drift OF things during April were
contributed today. One was the Dun's Re-
view average OF commodity prices, which
showed for tho last month the largest
increase OF any month since October; the
average on May I being. except for the
March 1 figure. the highest since April,
1921. Accepting this index number as the
measure. II will be found on comparison
that the general average of prices is five
per cent above the low level Of the recent
per cent below the periods highest level
reached May 1. 1890. and 80 per cent
above the average OF August I. 1914
Tho other statement was the commerce
in March by countries of origin or destin-
nation. In this the matter Of particular
interest was our trade with Europe. Our
exports to that continent In March were
the largest OF any month since Octooer;
our imports from Europe the largest since
September. 1920. But the ratio of In
crease in the exports il the. greater, 80
that the March surplus Of exports over
imports. $4,000. 900, exceeds substantially
that Of any Of the four preceding months.
This has soma bearing on the foreign e1.
change situation even though the export
surplus Is smaller by $4,000. 900 than in
March Of 1921. and by $246.oo0. 900 than
in March. 1920. In the month trade
with England Franco and Germany our
export surplus increased over February.
with Italy It decreased. being in fact
smaller than in the corresponding month
before tho war.