The New York herald., 1922-10-05
FINANCIAL NEWS
AND COMMENT
Stocks Bid Up More Vigor-
ously Than in Any Session
Since Recent Reaction.

Indications of returning confidence
outlook. as well as more complacent
attitude toward the Far Eastern situa-
ton, were seen in practically all flnan-
cial markets yesterday Stocks moved
forward with vigor that has not been
displayed since the reaction got under
way nearly three weeks ago.
At the same time a strong demand for
high grade railroad and utility bonds
and a substantial inquiry for foreign
Government issues put that market sub
stantially higher. The market for Lib
erty bonds. however. continued to re-
fleet pressure, largely the result of con-
tinued sales by big corporations and
banking institutions. which are being
called upon to supply funds with which
to finance the gradually expanding in
dustry of the nation
1t was apparent that something more
than professional operations was at
work In the movement of stocks. Up 10
yesterday there was little indication OF
public participation, but the manner In
which stocks were bid for in yester-
days session left little room for doubt
that interests entirely outside the pro-
fessional clique were among the buyers
This would be natural consequence OF
recent developments.
During a sharp decline in the market
the public, always trying to get into the
market at exactly the right moment
sezes upon every rally of any size as
Indicative of that moment. This ten
dency has cost the trading public dearly
in the past. but 1t is followed religiously,
nrfb hale su tnH xubt
as old as speculation itself-this trying
to pick the bottom of the decline.
So when the rally of Monday ran
right through that day and Tuesday
with extreme strength at the opening
yesterday morning, commission house
traders for the most part became con-
vinced that the bottom had been seen
and rushed IN to buy stocks Whether
or not they are right remains to be seen
Another thing which contributed to ad-
ditional conf dence on the part of the
public was the way in which pools took
hold of their favorites. There is nothing
that will attract an outside following
more quickly than activity on the part
of the pools. Some stocks were bid UP
to new high record levels.
There was particularly violent specu-
lation In the Standard OIL stocks follow
ing publication of the California COM
pany's decision to pay a 100 per cent
stock dividend. The buying of these
stocks. as well as two or three specialties
of very high price. was overdone in the
early trading. and they'all had substan-
tial reactions from the top. Neverthe-
less they recorded material net gains
on the day.
A new hindrance to the progress OF
industry has developed in the car short
age. and just as the basic industries
were getting into full stride after weeks
and weeks of curtailed operations. which
amounted to almost complete idleness
they have been compelled to slow down
once more.
The weekly reviews of the steel indus
try report that the inability to move
freight rapidly enough has resulted in
heavy backing up of finished steel
products, and that'in turn has caused a
number OF important plants to curtail
operations again. Railway executives,
however, are confident that the present
difficulty soon will be removed.
Foreign exchange movements were
confused again yesterday, with the Ger
man mark declining to new low record
while sterling and other European rates
were reflecting the big Improvement in
the Turkish affair by substantial ad-
vance What the reason Denind tne
weakness of the mark this time is cannot
easily be seen. Certainly 1t is most un-
likely that speculative operations are al
the bottom of the weakness. However,
the general attitude in the financial
community toward the new decline in
German currency was that it was with
out Significance and therefore to be ig-
nored.
Call money reflected more ample
supMy. declining from an opening rate
of u ner cent. 10 per cent.