The New York herald., 1922-10-03
FINANCIAL NEWS
AND COMMENT
All Markets, Except That for
Wheat, Advance as Turks
Agree to Conference.

Sharp rallies In practically all markets
resulted from the publication of dis
patches yesterday morning indicating
that the Turkish troops would cease
their advance and their other warlike
activities pending parley with the
British.
In the exchange market there was
particularly enthusiastic reception of the
news. Sterling rates jumped 21a points
at the opening, as compared with the
closing rates on Saturday, and French,
Belgian and Italian exchanges were like
wise much stronger than last week.
Later in the day there were substantial
offerings of sterling bills, and most rates
reacted somewhat from the best figures.
If, as international bankers assert, the
speculative element in the foreign ex-
change market has not been an impor-
tant factor in the decline Of the last fort
night, then 1t Is altogether unlikely that
short covering tactics were responsible
for the sharp upturn. What actually
happened was that holders of CONNER
cial bills withdrew their offerings from
the market when the new turn of events
in Europe was made known.
There have been heavy offerings of
grain and cotton bills for a week or
more holders preferring to sell them
even at the lower rates than to hold
them in the face of the unsettled political
situation. AS soon as there was
definite indication that the war scare
would pass and that a peaceful settle
ment of present difficulties was in sight.
then the urge to sell bills at almost any
available figure disappeared, and with
the market pretty bare OF offerings the
rate rebounded sharply.
Movements in stocks were confusing.
AT the opening the mornings news de
velopments were reflected in large gains.
Opening quotations in the leading active
issues were substantially higher than
those of Saturdays close. These were
followed by steadily rising prices through
the first hour. After that activity
sackened and for the balance OF. the
day stock prices were almost stationary
Certain specialties were taken in hand
at various times during the day and
marked up by pools sponsoring them,
but aside from these operations there
was little to attract attention after the
opening squirt.
The religious holiday caused the alb
sence of a large number from the finan-
cial district and total trading was kept
down around the three-quarter million
share mark Under other circumstances
it is likely that the extreme buoyancy
of the opening would have resulted in a
very active day.
Bonds, too, were inclined toward
higher levels. Liberty bonds were the
exception in that group however. Irreg-
ularity was the chief characteristic in
the market for the United States war
loans. There is still a very important
disposition on the part of large corpora
tions and banking institutions to part
with their holdings OF Libertys at these
levels. This is due in part to the i'm
perative necessity of meeting the re-
quirements of gradually expanding busi-
ness and industry and in part to a desire
to be in a position to absorb the new
Government financing which may be an
nounced from Washington almost any
day.
Wheat prices moved somewhat lower
but cotton was strong and regained
portion of Saturdays losses.
There was another display of tightness
in the call money market. On all sides
are heard assertions that with the coun-
try's record gold holdings, and the liquid
position of its banking institutions.
there can be no pulling of the purse
strings with respect to credit. Neverthe-
less, each day witnesses demonstration
of at least a slight stringency in the
market for call funds, and there has
been no little criticism directed at bank
ing institutions as "A result
The gradual Improvement and eXpan-
sion of business has absorbed great
deal of money and is absorbing more.
AID the same elements which have been
at work in the Liberty bond market are
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