The New York herald., 1922-12-15
FINANCIAL NEWS
AND COMMENT
Bond Trading Most Active
Since April 26 - Stocks
Generally Irregular.


shares of Piggly wiggly Stores in the
early trading, which carried them down
more than 10 points in almost as many
minutes, yesterdays stock market was
more or less devoid of feature. Trading
was on relatively active scale and
during the early hours of the day there
was some strength, particularly at the
opening Later. however. many lead
ing issues encountered profit taking and
other resistance at their higher levels
and the buoyancy disappeared Net
changes on the whole were irregular,
with special influences largely respons-
ible for those movements which were
outside the generally narrow limits.
Other financial markets were quite
active, especially the bond market in
which transactions totaled about twice
as much as on any day for some little
time and the largest since April 26. OF
course, by far the largest portion Of this
trading in bonds was in the United
States Government war loans which
were for the most part. slightly under
the preceding days levels. 1t Is not
unlikely that there is a direct connec-
tion between this selling of Liberty
bonds and the forthcoming United
States Treasury issue. In any event,
there were some extremely heavy offer
ings of Libertys and perhaps the sur
prising feature of the day was the way
in which they were absorbed with so
little effect on prices. Railroad bonds
were In demand all day. generally at
higher levels.
Foreign exchange rates, particularly
sterling, which have been the outstand-
ing feature of the financial markets this
week, were decidedly less active yester-
day The six cent advance and subse-
quent reaction on Wednesday seemed to
have lessened the interest in exchange
on London and yesterday movements
were within more or less narrow limits.
French and Belgian francs were the
most interesting of the Continental ex-
changes, both advancing substantially
above Wednesdays closing levels.
The commodity markets We're very
active and unusually strong. December
wheat made another new high above
sl.25 bushel, representing gain OF
about nine cents bushel in only a week.
There can be no denying that the
tremendous advance of foreign exchange
rates has been an important factor In
the Improvement in commodities. Yes
terday's wheat prices showed a gain
of something like 26 cents over the low
prices of the year.
Cotton had sharp advance following
publication Of the November consump-
ton figures, which showed the largest
consumption in many months. Total
consumption for November. exclusive OF
linters aggregated 577,56l. the Census
Bureau announced, which compares with
533,950 in October and with 527,940
bales in November of las, year. I'm
questionably this was constructive in
.iuence which the market could 90,
ignore.
There was little change of Importance
in the weekly Federal Reserve state
ments. The system gained 5000, 900
in gold and lost about 500, 600 900 in
combined Government and reserve de-
posits. which accounts for the increase
In the reserve ratio from 74.3 to 75.1
per cent. That this increase was not
greater was caused by further expan-
sion In outstanding Federal Reserve cir
culation, which increased $4,000, 900.
This is normal expansion which may
be expected at this season OF the year
when huge amounts Of cash nre changing
hands In ordinary Christmas trade The
New York Banks statement followed
pretty much along the lines OF that OF
the system, except that the circulation
item showed drop OF se.70G. 900.
Call money remained at per cent all
day. the expected huge Government with
drawals due to-day having no effect on
the rate