The New York herald., 1922-12-06
FINANCIAL NEWS
AND COMMENT
Another Gain in Sterling and
Weakness in Cotton Fea-
ture Markets.

Further important gains in exchange
on London and late weakness In tire
cotton market which carried the Deem
Der option down so points below Mon
days close, Notwithstanding heavy buy
ing In the early trading. were the fea-
lures of yesterdays activities in the
financial markets.
Stocks for the most part fluctuated
issues which did move beyond these
limits were influenced largely by indi-
vidual developments. such as stock
dividends. big earnings. &c. Kennecott
Copper. for instance. advanced more
than a point when dividends were re-
sumed. Studebaker did the same on the
announcement that a % per cent. stock
dividend had been declared. Great
Northern. on the other hand, declined
on rumors of adverse dividend action.
And so it went throughout the list.
Movements of stocks were based almost
entirely on special factors affecting
separate issues. There was no con-
certed group action discernible any
where in the entire list Bonds once
more moved but little. There was
decidedly firmer undertone in the In
vestment market, but no important de-
mand made its appearance.
The sharp break in cotton came as a
complete surprise in the last hour of
trading and as result probably went
further than circumstances warranted.
A crop estimate of 9,640,000 was per-
pated and as a result there was some
buying early in the day which made
for a slight rise. The market failed to
advance as sharply as was expected,
however, and a wave of selling was en-
countered late in the day before which
prices crumbled At the close the De-
cember position was more than SO points
below Mondays last prices and about
$3.50 bale below the high of the year
established only relatively short time
ago
The extraordinary bouyancy of sterl-
ing exchange was once more in evidence
and again a new high for the year end
for period of nearly four years was
established Italian rates. however,
failed to follow exchange on London as
they did on Monday and the Ira declined
below the five cent point again. French
francs too, we're under pressure, getting
held firmly at the point above parity to
which it had advanced on Monday, and
Holland rates advanced six points.
Call money was again in small supply
Stock Exchange the rate advanced from
to ~ per cent. Brokers are somewhat
at loss to explain the stringency at a
time when the peak of crop moving de-
mands has passed Nevertheless, the
fact must not be overlooked that for
three weeks the actual statement Of
clearing house banks has shown def
cit in reserve.
One factor entering into the demand
for funds is the approach of the Christ
mas season. VI course tne requirements
of merchants to carry them through the
season are not as great by a wide mar
gin as those of the interior during the
crop season.
Nevertheless, while the topmost point
of the crop demand has passed, there is
still a substantial amount of money used
for that purpose which has not returned
to other channels. and this. together
with the seasonal holiday requirements.
creates a pretty severe shortage of
available funds. Then. too, with bond
prices substantially below their high
marks. there is every likelihood that con-
siderable investments have been made in
that quarter.