The New York herald., 1922-08-18
FINANCIAL NEWS
AND COMMENT
Persistent Buying for Account
of Public Gives Stock
Prices Big Advance.

Spirited advances In practically all
financial markets yesterday reflected the
progress toward q settlement of the
labor difficulties which have held busi-
ness and industry in check for many
weeks. Stocks advanced sharply. while
bonds. with the exception OF the Liberty
Issues. which were shaded slightly. like
wise displayed buoyance. In the COM
modify markets both cotton and grain
advanced, and foreign exchange rates
were substantially higher.
The breadth and activity Of the stock
market indicated to what an extent the
revival of confidence has reached. The
whole list was under steady accumula-
ton all day and there was no particular
group which appeared to outdistance the
others either in the extent Of its advance
or the persistence of the buying A few
issues which. due to speculation of recent
sessions. had run far ahead of the gen.
eral list declined slightly, but with one
or two exceptions losses were small and
without Significance.
Short covering played an important
part in the rally, no doubt, but tho fea-
ture OF the market was the steady and
persistent buying by commission houses
for account Of the public, a factor which
was very important in the minds OF vet
eran operators For weeks the public
mas kept away from the market and op-
erations have been almost entirely in
the hands of professionals. With the
Detter outlook for settlement Of the
iapor troubles and with the outlook for
tremendous fall and winter business
Drishter the moro cautious and conserya-
tive buyers OF stocks once more became
active.
News from the meeting of the railroad
executives with the representatives CT
the four brotherhoods which filtered out
during the stock market session was
meaningless and had no bearing on tho
movements OF stocks. ....f..
The rails were in the main higher.
but their advances with one or two ex-
ceptions were fractional. while leading
industrials moved from one to five points
and more above Wednesdays close.
Public utility STOCKS. sugar stocks, tho
steeis and 9 number of specialties were
heavy demand. Steel common sold up 10
1O3, within u point of its high for the
year.
Bethlehem was only fractionallv
higher traders preferring to scan the
merger plan to he made public to-day
before making commitments. The same
vas true of Lackawanna. Strombery
'Carburetor made a sensational gain OF
more than five points as a result Of
speculative operations which forced ur-
gent short covering.
In the cotton market there was a gain
OF 100 points. or S5 BALE in virtually
all options. The crop situation as re-
Elected In advices from the South has
become dangerous and the demand for
future contracts exceedingly heavy
Drought In the West, far too much
moisture in the East and an important
increase In the. boil weevil menace
were important factors In the advance
In grain, too, thereswas sharp upturh
This was due largely to short covering
IN Chicago and was a natural develop
ment OF an overdone speculation for
the decline.
big advance In sterling featured the
foreign exchange market. British rates
got close to 4.b0. Francs recovered some
OF the sharp losses of the last few days.
but the German mark continued it's
downward course, although with soms-
what less vigor. Call money rates were
just little stiffer than on Wednesday.
with rate of 3A per cent being main
tained through the session. The demand
was not excessive, however, and there
was nothing to indicate that a highor
rate might be expected.