The New York herald., 1922-07-07
FINANCIAL NEWS
AND COMMENT
Buying Preddminates in Stock
Market Francs, Marks
and Lire at New Lows.

Extraordinary weakness In some OF
the Continental exchanges and a sharp
reversal of form. both In trend and In
activity. in the stock market were the
features of yesterdays operations in
the financial district Bonds, too. were
under steady accumulation and moved
up substantially.
The strength and activity m the
stock market following a week or more
of aimless and dull movements were
traceable directly to an important shift
in sentiment. Enthusiastically the buy
ing OF stocks yesterday. particularly In
the railroad department. reflected de-
cidedly better feeling as to the imme-
diate future and a conviction that the
correction of an overdone speculative
movement had been completed.
One thing was made plain yesterday
in the stock market. That was that
during the periods of dullness and
pressure of the last fortnight good
stocks were under steady accumulation
This buying had been accomplished in
such a quiet manner as to attract no
notice and to make no impression what
ever on the general softness of the
market. When sentiment shifted and
traders generally began to feel that
the time had arrived to purchase good
stocks. however. the effects Of that ac-
emulation were Immediately notice.
able and 1t was necessary to bid pretty
sharply in order to get stocks.
1t is hardly likely that the strike
news was OF much import in connection
with the rail move yesterday. Prac-
tically all of the favorable strike de-
velopments were known the day before
and had little effect: also rail shares
did not decline materially In antici-
patton OF the strike.
One noticeable feature in the stock
market yesterday was the fact that
most Of the stocks in which greatest
interest was displayed were investment
issues which probably were following
the continued upturn, In the bond mar
ket. The strength in bonds was not un-
expected, but the activity and breadth
of the bond market were a distinct de-
parture from the tendency Of the last
few days. Liberty bonds were traded
in very heavily all day and several Of
the issues once more established new
high records.
Rail bonds. too, gave evidence of
heavy accumulation. 1t Is apparent that
the reinvestment Of funds received
through the mid-year adjustments has
not been completed and purchasers Of
high grade bonds have found 1t impera-
tive to step into the market and make
substantial bids for any issues they
particularly want
Foreign exchange, aside from ster-
lire establishing new low levels. The
selling of French francs was particu-
larly heavy and according to well in
formed foreign exchange men could
come from only one source in such
volume--the French Government. The
only guess which was hazarded as to
the purpose of this heavy selling was
| the establishment of credits here and in
London for the purchase Of wheat. The
weakness in francs also reflected in part
at least the continued decline of the
German mark. which went once more to
new low under % hundredths Of a
cent.
Cotton was under pressure most OF
the day following the publication Of a
| favorable weekly weather report. Grain
was likewise affected.
A sudden demand for call money jus,
before the close, coupled with some
calling of loans, advanced the rate
from Az per ceAt. sthe opening figure
to per cent.