The New York herald., 1922-08-02
FINANCIAL NEWS
AND COMMENT
Bears Press Stock Market in
the Absence Of Definite
Rail Strike News.

The stock market waited all day yes
terday for some definite development
In the strike situation to supply an i'm
pulse to trading. but NO reflection of
events In the railroad executives con-
| ference came until near the close of
trading. That was the suggestion in
tho form or rumor. afterward con-
firned. that rail managers would not
accept In full President Harding's re-
quest that the striking shopmen be
restored to complete seniority privileges
when they returned to their jobs. The
Street had known beforehand that the
seniority question would prove STUN
bling block. There was no surprise,
therefore. when the executives turned
it down. but It had been felt that the
way still would be left open for read
1ustment OF this and other disputed
points.
AS no information reached the mar
ket Of a possible compromise. short
sellers brought considerable pressure
against automobile, steel, chemical and
rail- Issues between 2:30 and 8 o'clock,
causing many reactions OF a point to
more than . points from the best prices
of the day. Prior to the final reaction
quotations had drifted along in de-
cidedly dull trading. the tone being no
more than uncertain. In fact stocks
had contributed much less OF interest
to the financial day than had cotton
with its abrupt advance of IS to 50 a
bale following the monthly condition
report.
The unsettling result of the execu-
tives' conference counteracted improv-
Ing sentiment about the coal strike
News that John L. Lewis, head of the
mine workerss uion, had invited oper-
ators in central competitive territory to
confer With union representatives In
Cleveland next Monday was encour-
aging. Attention had been centered so
completely on rail strike conditions for
several days that 1t was taken for
granted that measures for a settlement
of the coal controversy would be shaped
to degree by the rail agreement. But
in market opinion the whole situation
was in a more confused state last night
than it had been before.
The rapid rise of cotton futures re-
fiected complete surprise in the trade
over the Governments report. The crop
condition OF 70.8 per cent. of normal as
of July 25 was fully Q per cent. lower
than preliminary estimates in private
sources had made It. and the estimated
crop of 11.449.000 bales was at least
$50. 900 bales lower than the market had
counted upon. Instead of an expected
Improvement over the June figures the
report showed a decline of nearly a half
per cent. As the estimated carryover
of about 100000 bales from the 1921
crop is not much more than old crop
stocks a year ago, with consumption
promising an expansion in the current
cotton year. the market figured that
prices were too low. The December and
October contracts advanced very close
to the maximum OF this year. reached
in July.
German exchange drew back to IAN
cents. new low point. concurrently with
soft and uneasy movement of sterling
and francs. London appeared to be
disturbed by information that the Brit
ish Premier had prepared an important
discussion of interalled debts with ref
erences to mutual cancellations. The
proposal did not become public and may
have been in preparation for the meeting
Of Lloyd George and Poincare on August
2, the date having been changed from
August /.
Call money supplies were larger than
the day before. the rate standing at
4 per cent. for all loans.