The New York herald., 1922-08-10
FINANCIAL NEWS
AND COMMENT
Strong Trend Shown by Sew
eral Rail Stocks Counteracts
Bearish Sentiments.

The decided strength OF half dozen
railroad stocks yesterday headed or oc-
e3sional signs OF bearish activity in other
directions and the market displayed as
much underlying firmness as it had In
any previous day OF the strike period.
The calm state Of the speculative mind
and the confidence OF the investment out
look was little short of remarkable In
the light OF unsatisfactory news and de-
velopments reported in Industrial lines.
The evidence OF shortened production
was more clearly read in steel trade
surveys than a week ago.
While information from the coal con-
ference in Cleveland indicated that nu-
merous mines might be reopened in a
few days. the absence OF a full agree
nent between operators and the unions
suggested that the return to a normal
output in the leading fields would be
Sow. The unrest of rail brotherhood
members was emphasized by walkouts
here and there in the Middle West. AL
together progress toward a settlement
or strike troubles failed 10 disclose the
speed expected on Monday
Stocks acted as though speculative
sentiment toward the strikes had been
submerged in the belief that when they
came to an end business would surge
forward Support to this thought lay
In the August crop report, which pointed
toward an enlarged purchasing power
this autumn in agricultural territory.
with the accompanying refiexes in manu-
factures. 1t lay also in such items as
the notation by the Iron Age that a
leading Chicago steel mill had had one
OF it's best weeks of this year in new
orders.
Undoubtedly the upbidding of such rail
shares as Great Northern preferred,
Chicago and Northwestern and Union
active dealings in Atchison and South
ern Pacific reflected hopes of good re-
turns from the crop movement At
the same time steady tone of steel
shares and renewed demand for the
more prominent oils recorded a market
situation as yet untouched by the prob
lem Of counting actual strike costs.
The time ls bound to come, of course.
when these costs must be faced. Opti-
nism about the future cannot ignore re-
ports OF the closing of additional blast
furnaces in the last week and the high
premiums being bid for fuel supplies.
with the steel industry pretty well con-
vinced that only small percentage OF
the coal output OF the next few weeks
will go to the mills. it is certain that
profits are going to suffer somewhere.
Steel prices are going up abreast OF
the rising tide of coal and coke. In case
of some producers, but the advances rep
resent an effort to offset increasing costs
and have only remote application 10
net income.
The plain indications that the French
delegation to the London conference
went across the Channel with chip or
their shoulder had depressing efecl
or Paris exchange. the rate sagglng Ia
points at the same time that sterilnG
rGd up rather firmly. There was notn-
ing surprising about the French a,u'
tude toward the reparations question,
however. for advance information had
fcretoid difficult negotiations. The ques-
ton of what will happen to the Euro
mean exchanges, especially on the Con-
tjuent. when necessitous purchases ol
American food materials are made IN
the ensuing three months Is yet, 10 oe
answered.
The crop report acted TO depress
wheat and corn futures to the ioWes'
prices of the season. Cotton on .h'
n,ner hand benefited from short covering
onsratlons. rising about 3S points at thu
he At level. with a late reaction.