The New York herald., 1922-01-05
FINANCIAL NEWS
AND COMMENT
General Recovery Features Se-
curity and Commodity
Market Prices.

general recovery In the security and the
commodity markets was a dwindling of
influences that caused Tuesdays sharp
reaction. 1t was evident in news from
Chicago that her banking troubles had
been handled with the dispatch and
thoroughness which characterized set
tlement Of last summers similar episodes
in New York. Pressure on wheat prices
was lifted after uncertain fluctuations
In the morning and by closing time quo
tations were 3 cents a bushel higher
than they were on Tuesday. In cotton
buying for the long account was re-
sumed. following receipt Of cables tell
ing of better feeling among Man
chester manufacturers concerning the
finished goods market and afternoon
dealings carried prices 80 a bale higher
than they were on Tuesday. The cot
ton market was aided alse by the ex-
port movement. yesterdays shipments
of $1,000 being the largest Of any day
In the last three weeks.
As tho market acted practically In
concert. 1t was not possible to say that
the upturn Of stocks affected the other
markets or vice versa. But in addition
to the result Of better sentiment in re-
spect to several matters which appeared
dubious on Wednesday stocks were
aided by easement Of the call loan rate
from " per cent. 20 per cent. The
lot he eli
November Is, and indicated that the
fore part Of January was to follow con-
ventional lines in seeing an easy money
condition brought about by the return
Of year end dividend payments to banks.
Tho more active shares advanced IN to
points. That upturn eliminated about
half of Tuesdays recession on the aver
age, and as some of the force behind It
was evidently short covering Of con-
tracts made the day before 1t could
not be said that the price list had again
become stable. 1t will require longer
than the first week of January to deter
mine what the dominant speculative in
fluences ana to be during this years ini-
tial quarter.
The weeks reports from the steel
trade showed clearly that producers
are hopeful of improved buying. but
the statement by the Iron Age that "a
sixty per cent. operation at some time
in the new year is not considered too
much to expect" suggests that In GER
tain quarters, at least moderate re-
suits are looked for In 1922. Maximum
operations of no more than sixty per
cent. of capacity hold out no great
prospects for profits for many less well
integrated manufacturing companies.
The Pennsylvania Railroad has ailo-
Gated orders for $4,000 tons of rails. in
contrast to 100000 tons ordered in
December, 1920, for use in 1921, which
seems to indicate that rigid retrench-
ment In replacement and maintenance
outlays will play an important part In
at least one great carriers plans, but
the steel trade believes that new car
orders will be extensive In the next few
months, and the fact that more steel
was consumed last year than the mills
turned out forecasts extensive buying
for the replacement of stocks. Despite
the slowing down Of steel works during
the holidays, iron production held UP.
the 53.1s6 tons daily in December max
ing a fairly sharp contrast with 47.1s3
tons day In November.
The foreign exchanges worked slightly
lower in a dull market. Bond prices
were irregular.