The New York herald., 1922-12-12
FINANCIAL NEWS
AND, COMMENT
Sterling Goes Again to New
High Since 1919-PoOls
Bid Up Certain Stocks.


outstanding feature of the financial mar
kets yesterday. Continuing the advance
which has been steady and virtually
uninterrupted for more than a fortnight,
exchange on London got above s4.59.
another new high for the year and for
the period which began early in the
spring of 1919 when the British Govern
ment's pegging policy was abandoned.
Other exchanges we're also very strong.
The Swiss rate advanced to within about
fifteen hundredths OF cent Of parity.
and exchange on Amsterdam was at
about the same discount. Stockholm
rates were slightly lower than at the
end OF last week. but held at premium
nevertheless.
Abandonment for the moment of the
reparations conference failed to find re-
Election In a recession In exchange rates.
much as this might have been expected.
For this reason. If for no other. 1t be-
comes more plain that the Exchange
market has been strong because of I'm
proved Industrial and financial condi-
tions In those countries whose currencies
have advanced most rather than because
Of any expected political and economic
developments in connection with the
reparations tangle. OF course the ad-
journment Of the allied conference until
after the turn Of the year did not indI-
! cate a serious hitch In plans such as
was first believed to have occurred: but
1t did suggest that difficulties were being
encountered which It was thought wiser
to smooth out in conference rather than
in general session.
So far as the stock market was con-
cerned. there was little in yesterdays
session to distinguish 1t from preceding
days unless 1t was the sign OF greater
pool activity Uncertain Individual issue.
Such stocks as Allied Chemical, United
| States Industrial Alcohol, Corn Products
| and some OF the lower priced issues were
obviously being advanced by groups
which have interested themselves in the
market for these shares. Otherwise the
stock market drifted more or less aim
lessly and. as.for more than two weeks,
| professionals.
| 1t Is noteworthy, however that senti-
ment with respect to the course of stock
| prices has undergone very definite
shift since the read5ustment of the gen.
| eral list got under way nearly two
months ago. The highest points of the
| year as indicated by the average prices
of stocks were reached in the middle Of
october and since that time the trend.
with slight Interruptions has been down.
ward. 1t Is natural to suppose that the
| top heavy speculative position of stocks
which was due to speculative excesses
has been corrected by the reaction and
that If the low points of the recession
Rave not been seen they are at least
| close at hand. OF course. there Is likely
to be some more selling for tax pur-
| poses and the success experienced by
| professional bears has encouraged them
| SO that they will not permit the list to
advance without further attempts to
break prices. Feeling In general. how
ever. Is distinctly better than it has
been for some time.
| Bond prices were firm. but business
was exceedingly dull. United States
| Government bonds were strong, the
Treasury ANS selling up to the highest
| point for the current move. At yester-
days top figure they were at a discount
of less than one-tenth of i per cent.
Cotton moved within narrow limits
and closed but slightly changed from
Saturdays last prices. There was a
confusion of movements in the grain
markets and December wheat. after
making a new high above $1,22. declined
full cent. At the same time July
wheat advanced similar amount above
the close of Saturday. Call money was
In supply around Az per cent, reflect
ing the improved banking position which
was suggested by Saturdays clearing
house statement. In which was revealed
big increase In reserve.