Omaha daily bee., 1922-05-17
Financial
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By ALEXANDER DANA MOVES

New York, May 16.-Thc three
interesting movements in today's
markets were the strength of foreign
exchange, despite our governments
refusal to take part in a second con-
ference on Russia, the further vio-
lent advance in cotton prices, and the
greatly confused fluctuations of steel
shares in the merger group" That
the movement of these stocks should
have become far more bewildered
when the market learned the terms
Of the Bethlehem Lackawanna mer-
ger, than it was while the terms were
being withheld, was quite i'll char
acter. In market of this kind, fact
is much less stimulating influence
than fancy. The amount of new
Bethlehem steel stock which is to be
exchanged for old Lackawanna steel
shares would indicate a higher valu-
alton for Lackawanna than the mar
ket had previously given, always sup
posing the new Bethlehem stock to
be worth what the present outstand-
ing stock has been bringing on the
market. Unfortunately this sort Of
calculation is measuring with vari-
able yardstick Increase in the
amount of given stock outstanding
has been known to affect its value
even on the stock exchange. As a
whole today's stock market moved
uncertainty with highly irregular
changes for the day but with net ad-
vances predominating.
Exchange Rates Strong.
Today's strength. in European exchange
rates certainly suggested that the mar
ket has cut loose from Lloyd Georges
terest In foreign exchange movement
took a somewhat new turn. however, on
tho unexpected announcement that ST.
100000 gold had been taken from the
American market for India. 1t was not
clear whether this consignment was to
60 directly from west coast or in
directly by way OF London. Even last
week London received some $600,e gold
from the United States which was added
to the already large English shipments to
Bombay. II the movement were to con-
tinue on an extensive scale, as It did In
1919. the turn of affairs would in some
because the United States could not spare
the gold but because instead Of going to
European countries which could put It
to effective use, 1t was being drawn again
into that bottomless pit of the far east
which has absorbed In the past so great
part of the worlds money metal.
Except for two days last fall. on each
OF which last years high mark or zl.e5
cents per pound was touched, today's
price of 2i.5oc for spot cotton was the
highest since November. 192N When. that
price was momentariiy reached. on Sep
tember. ~ and g. last year. the agricui-
tural departments sweeping under esti-
mate OF s;537.ooo bales for the probable
crop Of 1sei was about to be published.
Since its publication. October 3. the cot
ton market never again got so high as
todays price.
High Cotton Mark.
Meantime the department itself has
haised its estimate to s,340, 900 bales And
although even that figure was nearly 30
per cent below the average yield Of other
recent years, the price as an immedite
result of the revision went as low as 1915.
The present recovery in the price, to
practically the highest point since the
acute stage forced selling of speculative
holdings in the autumn Of 1920, has un-
| doubtedly resulted mainly from the very
unfavorable start Of the crop of 1922. But
this circumstance. a consequence of the
unreasonable spring rains and floods In
| the cotton belt, has also served TO em-
| phasize another fact, which the market
| largely ignored at the beginning Of this
| year. The best southern experts have
| calculated that the very substantial In
| crease in home and foreign purchases
I since last summer would not only use
| up all the smaller yield Of 1921. but
would bring down the lately enormous un-
sold surplus to carry over" no greater
\ than the normal. This Is the curious sit
\ uation presented in the problem of sup
| ply. in case OF real deficiency in the COM
l ing seasons yield. The question Of de-
rnand for the finished goods and there
] r. at. 1~GH - N
/ present price OF higher for his raw ma
terial is yet totes determined. 1t may b.