The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-11-18
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Advances
Again as Stocks Continue
to Show Irregularity.

Again yesterday the most interesting
movements In the financial markets
were those of foreign exchange rates.
Commodities advanced substantially and
in the stock market there was a marked
degree OF irregularity. Foreign money
rates, however. were exceptionally
strong all day and sterling and French
francs especially registered big recov-
cries from the lows OF a week ago.
Perhaps the new political developments
in Europe were responsible. That at
least was the theory advanced in more
than one quarter.
1t Is much more probable, however.
that the rise at this time is nothing
more or less than a speculative move
ment. International bankers could see
nothing which would account for the
sharp break a week ago in French and
italian rates. To-day there h,-' been
practically no change in the Situation.
II, then, the declines last week were
due to speculative operations. as they
probably were, it Is quite likely that the
present recovery is but a similar swing
in the other direction. At one time
yesterday French francs were about SO
points above the lows OF only nine days
ago. Italian lire We're the single excep-
ton in the advance and they dropped
slightly on the day.
The stock market was an irregular
affair which was once more almost en-
tirely in the hands of professional trad
ers. With fundamental conditions en-
tirely overlooked for fortnight or
more while an overdone speculative
position was being corrected It Is not
surprising that professional speculation
still holds complete sway. Many things
have been accomplished marketwise in
the last week, viewed from a purely
speculative angle. Topheavy margin
accounts either have been eliminated
from the market entirely or have been
SO bolstered up by additional collateral
that they have ceased to be a menace
to any tendency to advance AT the
same time the long list Of stop loss or
ders which always are to be found just
under current prices in market which
has had long and steady advance have
been caught and their danger removed.
So at least some of the causes for
the markets weakness are out of the
way. Yet this in itself Is not sufficient
to expect an immediate turn about In
the trend of the share list. The public
has been thoroughly frightened and 1t
"a "a get hoc INT
the market on large scale. At the
same time there is a great deal of SELL
ing of stocks still being done. some Of
1t for taxation purposes and some OF 1t
for the purpose Of taking what Is left
of profits.
Then. too. there is the point of ac-
emulation. Unless the bull campaign
Is entirely at an end It Is reasonable to
assume that spectators are taking
back lines Of stock which they had dis
tributed at much higher levels. The
history of every movement like the
present reveals period Of accumula-
ton after a violent decline. during
which pool operators and other con-
structive canpaigners lay the founda-
ton for their next move.
Cotton advanced very sharply In the
last half hour OF trading yesterday, re-
gaining a considerable portion of the
preceding days losses. Grain. too. was
strong, December wheat getting above
$3.50 a bushel.
The weekly trade reviews continued
TO report basic Improvement and set
forth that about the only obstacle in
the way OF even more rapid progress at
this time Is the need of colder and more
seasonable weather.
Call money eased to S1h per cent.
the lowest In two months. The re-
turn of funds used for several weeks
IN the interior has been a factor in
lowering the rate for call loans.