The New York herald., 1922-06-10
FINANCIAL NEWS
AND COMMENT
Stocks React Under Profess
sional Selling-Call Money
Down to 8 Per Cent.

The reaction which came into the
stock market yesterday afternoon was
not altogether surprising to the specu-
lative element. which had discovered
early In this week that prices could be
carried upward only by exercise of con-
siderable force. But the average de-
ctnes were larger than sponsors OF the
constructive side liked to see. The set
back, in fact; was sharp. especially
among stocks. recent fortunes of which
have been guided by the pools. The
reasons. apparently, were within the
market itself rather than In outside in
fluences. as news Of money, industry
and railway traffic was satisfactory In
the main. Call money was lent at per
cent for all transactions, a rate lower
than any. quoted for renewals since
April, 1917.
The decline of stocks. which ran from
u point to more than 2 points among
such issues as American International,
American Locomotive. Baldwm Loco
motive. Cosden. Lackawanna Steel. New
Haven. Republic Steel. Mexican Petro-
leum and Studebaker. was evidently the
elimination Of a period In which pro-
fessional traders had tried to bid prices
up In the face Of public disinclination
I'd follow them. The result Of that prac-
tice was a market full of sellers when
1t finally became plain that stocks were
hard to lift, and lacking buyers except
at marked concessions. 1t was doubt
full IL the tendency Of prices bore more
than a remote relation to underlying
business conditions and took no notice
Of this weeks mercantile reports. which
recorded more confident purchases by
retailers, more active factories, espe-
cially In shoe and leather lines. and
fairly broad trend of commodity prices
in the upward direction. The business
outlook at the moment is to be con-
s;dered from very important back
ground, supplied by excellent June
crop statistics, especially of grains and
hay, and the presence OF cotton prices
above % cents a pound. new high
record for this season being recorded
yesterday.
The cotton market brought forward
as brisk features on the advancing side
of prices as stocks did In the decline.
to nearly three-quarters Of cent
pound in the morning brought the sew
eral future options to points about 212
cents pound higher than they were
exactly week ago.. Naturally. such
handsome profits as traders had ac-
cumulated on paper urged extensive
realizing sales and nearly half OF the
days maximum gain was wiped out
near the close. The next Government
report on cotton condition promises to
be especially interesting. Buying OF late
has been based on continuous reports
of unfavorable weather In important
sections of the cotton belt. and this.
too. at a time when the young plant Is
less able to combat bad soil conditions
than it would be a month hence. The
July, October and December contracts
were all above % cents at their best
prices.
Continental exchanges were again
rather soft yesterday and sterling eased
slightly from Thursdays last price. But
the recession was not sufficiently
abrupt or extensive to prove tnat lne
market was greatly disappointed over
events in Paris News In regard to the
reparations and the German loan was
decidedly difficult to interpret. APP
parently the assembled bankers were
reluctant to drop discussion of loan,
hut at the same time, were faced by
a barrier In the shape of Frances op-
position to any change of the repara-
tions total. The financial community
found comfort in the bare fact that
the bankers had not definitely decided
to go home
Sterling after going down to 4.49 re-
covered late in the day to 4.49%. shade
higher thsN 1t was on the day before,
and marks closed a point higher than
on Thursday.