The New York herald., 1922-12-05
FINANCIAL NEWS
AND COMMENT
Irregular Movements Mark
Stocks-Foreign Exchanges
Show Strength.

" ScIScS OK !NteImltlctl UccliNeS ana
rallies In the stock market. extreme
strength In 4 number of foreign ex-
changes and moderate declines in COM
modities summed up yes(erday's activi-
ties in the financial nsarketg But for
a sharp rally in tho last half hour of
trading. during Which some urgent short
covering was forced. the general list OF
stocks would havo shown substantial
losses in comparison with Saturdays
closing figures. AS IL was the stock
market could best be termed irregular.
Special developments in certain indiyid-
Gal issues made them extremely weak;
otherwise the pressure against stocks
WAS moderate and almost entirely the
result OF professional operations.
81 President Harding's message TO Con-
gress asking for appropriations aggregat-
discussed In the financial community.
There was quite divergence of opinion,
however as to its proper construction.
None denied that the sharp reduetion
from the budget OF the preceding year
ment and that the suggestion OF con-
tinued economy in Governmental ex-
penditure was most welcome.
AT the same time the intimatiou that
at the level established by the Chief
Executive in his message. two-thirds of
which Represents expenses incident to
the war, there is little hope OF reduc-
ton in taxation. tended TO limit some
what the feeling of satisfaction which
the message otherwise would have
brought. The suggestion that the
deficit OF about s274,o00.000 now indi-
Gated the current fiscal year may
be materially reduced naturally was re-
garded with favor.
or perhaps of less direct Importance
but indicating at the same time the big
Improvement in the technical position Of
the stock market was the announce
ment that the supervision of the loan
accounts OF Stock Exchange members
was to be abandoned This practice Il
making periodical reports of outstand-
| ing loans by each memi er was inau-
Surated as war measure and continued
in modified form in the postwar
periods OF imitation and depression.
That the Stock Exchange and Federal
Reserve authorities. who first requested
slF,h action. now feel the situation no
langer requires such close check on
! speculation Is indeed an interesting and
| Important development. There is little
! dorbt that the cutting down OF loans
| accomplished by member houses in their
endeavor to make a good showing on the
exchanges questionnaire had sonethi-g c
to do with correcting the loan posit OF
TO the point where il was felt the regular
reports were no longer necessary.
Foreign exchanges. par,i ularly ex.
change on London. were strong yester-
day. The pound Sterling sold above
4.j3 -. tho hi i,iest figure it has reached
In nearly four years, IN king less absurd
In appearance the predictionsf freely
1 made last summer that sterling would
be at parity within year. or course
with the British interest payments out
OF the way for several months ana with
the heaviest season for offerings OF cot.
ton and grain bills at an end. any i'm.
portant pressure which might have beer
directed against London rates has beer
removed.
The suggestion is made that the
British Government may be accunlulat
ing dollars at this time to meet Interest
payments due In the spring. II this be
true. then there is another retardins
element which. when removed might
permit n violent upswing of British
raves at"iiaii itic were aiSo very slrOnE
yesterday. getting above tho . cent leve
for the first time since the middle ol
last June.
The bond market was dull and for the
most part lower. Fluctuations In the
United States war loans re narrow
and without significance. In the com.
modify markets there was little doing
Wheat prices declined sharply, but re-
covered part OF the losses before tn,
close. Cotton was drill and slightly
lower. Call money opened at ) per ent.
but advanced to u in the late trading.