The New York herald., 1922-08-26
FINANCIAL NEWS
AND COMMENT
Bear Raid Proves Futile as
Many Stocks Reach New
High Prices for Year.

Aside from a severe break In some
OF the foreign exchanges and desper-
ate effort on the part OF professional
stock market operators to force prices
ments or significance yesterday. Oper-
ators in the stock market We're almost
wholly in the hands Of the professional
element. and when efforts were made
IN the afternoon TO depress stocks on
report and rumor spectators outside
OF the professional group declined TO
follow their lead. The result was that
the raid. which had been pretty well ad-
vertised in advance, was more or less a
fiasco.
Certain railroad shares were inclined
to lower levels. but largely from the
lack OF support. There was little to in
dicate liquidation either in the rails or
in other groups. 1t appeared that those
interested in railroad shares were in
clined to await developments in the
strike situation before making a move.
One or two OF the railroad issues were
under pressure because of special de-
velopments. This was especially true
in the case OF Northern Pacific. which
was sold rather heavily during the ses-
sion on an unconfrmed report that
the road is to put out a sA. 100000 equip
ment trust issue.
hnUavar ha en- lot
was very firm. In fact many issues
made new high marks for the year.
Profit taking by shorts in the marine
shares resulted in a sharp recovery Of
a portion of Thursdays losses in those
issues. The coppers were firm all
day. and some OF the public utility
issues, notably Consolidated Gas, We're
very strong. United States Steel made
another new high at 1c5la, the highest
figure at which it has sold in two years
and more.
In the foreign exchange market the
extreme weakness was confined to
and inactive and other European rates
did little. Marks, however, sold under
five hundredths OF a cent. The panic
in Berlin as a result of the terrific
fall in the exchange rate has reached
the point where virtually every one
who has any marks at all is making
desperate efforts to sell them at al
most any figure The close relation
ship between the German mark and
the French franc was long ago estab-
lished in the movement of foreign eX-
change rates. so the weakness of ex-
change on Paris yesterday was but fur
ther confirmation on that point. Francs
sold at the lowest figure since last
December just before they started on
their upward course to well above nine
cents.
In the bond market yesterday there
was to be found reflection Of the for
eign economic situation in the sharp
decline of certain foreign obligations.
Virtually all the French issues were
under exceedingly heavy pressure all
day. The French Government issues
and the municipals. which are actively
traded in on the Stock Exchange. de-
clined abruptly. Otherwise. the bond
market was rather dull. Local traction
bonds continued in stiff demand and
certain of the railroad issues which
have been listed among the favorite,
for the past week were again strong
Call money rates again reflected some
restriction due to accumulation OF funds
for month-end requirements. Cotton
declined sharply in the last hour. but
grain prices. on the other hand. were
Lightly better than at the close or
Thursday.
Little activity in general business was
indicated in the weekly trade reviews
with hot weather and fuel scarcity each
acting as a check. The trend of prices
however, was definitely higher.