The New York herald., 1922-09-24
FINANCIAL NEWS
AND COMMENT
Professional Sellers of Past
Week Buy Back Stocks
Prices Up Again.

Higher prices In stocks and bonds, a
a frmer tone in foreign exchange re-
fiected the relief felt in Wall Street yes
terday following publication of dis
patches from the Near East indicating
that latest developments are not as dis
turbing as was believed on Friday they
would be. Evidence that harmony be-
tween France and England may be
complete after all helped the financial
markets very substantially.
But after all the greater portion OF
heavy yesterday To rally the general
list from one to four points and more,
came from professional quarters. just
as the greater part of the selling dur
ing the last week was conducted by the
same clique. There was no evidence of
any disposition on the part of the pub
lie to rush into the market cnd take on
stocks at present levels, notwithstand-
Ing the public had been a pretty con-
sistent buyer at materially higher prices.
matter of guesswork in Wall street.
and with news dispatches from day to
day much at variance with the real
state OF affairs abroad, 1t was the better
part of valor for heavy operators to
take back some of their short commit
ments before the close of the week, 1t
might prove decidedly dangerous in the
present condition of the stock market
to go over the Sunday recess with heavy
contracts outstanding, for definite turn
either one way or the other during the
period might easily work havoc In the
market Inasmuch as a major portion
o. operations during the week were on
the short side. the evening-up process
necessarily took the form of short COW
ering.
In some of the more volatile and more
highly speculative issues gains were ex-
tensive. Gulf States Steel was taken In
hand and put to 90 with little difficulty.
Pool operations, while not entirely alb
sent, were scarce The pool managers
are not quite ready yet to take their
favorites up the price scale again; there
is too much uncertainty In the situation.
Further indication OF the extent to
which money rates during the last week
have been affected by a huge shifting
of funds was seen in the weekly state
ment Of the Clearing House banks.
While loans Increased according to the
actual statement. by more than $751;
ably over s63.ooo.ooo in demand de-
posits. At the same time the excess
reserve dropped nearly SCI, 100000 and
reserve of member banks in the Reserve
Bank declined ss9.24s.ooo.
That major portion Of the opera
tions which drew so heavily on the funds
available in New York were conducted
very late in the week is indicated by the
great difference in the changes In the
average and actual statements. De-
mand deposits, for instance. which were
off some s63.0O0.0o0 In the actual state
ment, showed an increase Of almost
SAT. 100000 in the average figures.
The selling of wheat yesterday was
nothing more than profit taking and
evening up over the week end. exactly
as was the case in the stock market.
Cotton, on the other hand continued
the moderate upward swing Of Friday,
with a further gain Of from 16 to 26
points.
Liberty bonds, and in fact the whole
bond list, were dull and inactive, with
only small and insignificant price
changes.