The New York herald., 1922-07-01
FINANCIAL NEWS
AND COMMENT
Final Rally WHITES Session
Which Comes Near Being
Dullest in Months.

pretty general short covering move
ment in the last hour yesterday. in
anticipation OF the holiday period, ac-
counted for substantial rally In the
general list which brought stocks at the
close up to from one to more than four
points above Thursdays final prices
Up to the last hour trading had been
exceedingly dull and 1t was indicated
that the total transactions for the day
would be about the smallest in five or
six months. The squirt of activity just
before the close however. lifted the
market from it's apathetic condition and
reawakened interest in stocks generally.
The buying yesterday was not OF the
kind that usually marks the end of a
decline or the resumption of forward
move 1t was largely from professional
sources and represented to some extent
the correction of an overdone short
operation That stocks are still in
pretty strong hands, however was indi-
Gated by the difficulty which the shorts
experienced when they did desire to
cover. Their purchases marked stocks
up in a most significant fashion and
caused many of them to hasten their
buying activities. With next Tuesday
holiday and the large majority of
professional operators planning to ex-
tend their weekend vacation from last
night until Wednesday. it was not sur
prising that the movements of yester-
days market were without significance.
Nor was the sudden burst OF short
covering an unexpected development.
The traction stocks were in excellent
demand all day, reflecting the recogni-
ton in the Street of the splendid earn
ings statements. particularly that Of the
Brooklyn Rapid Transit Company. Rail
road shares and pool stocks. too. were
particular features 1t is, perhaps, para
doxical that having had no moments of
weakness in anticipation of the railroad
strike these stocks should be particularly
strong in reflection Of possible settle
ment of the difficulties between the car
riers and their employees. Nevertheless.
there was substantial buying of the rails
most of the day and several OF them,
notably Rock Island, Atchison, Balti-
more and Ohio Chesapeake and Ohio
and a number of others displayed con-
spicuous strength. Oil stocks recovered
some Of their losses of the previous DAY,
but except in the stocks In which specu-
lative groups are interested there was
little real snap in these issues.
After renewing at u per cent call
money advanced to 5lA per cent. In the
last hour. This increase, however, did
not serve to slacken the rally which
stocks were undergoing at the moment
There was no particular increase In the
demand for call funds. but further call
ing of loans in completion of accumula-
ton for the dividend and interest re-
quirements of to-day was a factor.
Sterling exchange and francs were
conspicuously strong all day, but Ger
man rates declined once more and the
mark made another new low. Buying of
sterling was conducted on large scale
for a prominent institution which many
months ago was a heavy seller. The
British rate was low in the London mar
ket yesterday morning until the New
York market opened and that institu-
tons purchases made its presence felt
Cotton declined moderately in anticipa-
ton of a favorable Government report
on Monday. Firmness was the chief
characteristic of the bond market, with
the fourth Liberty 4As again at new
high.