The New York herald., 1922-12-21
FINANCIAL NEWS
AND COMMENT
Changes in Stock Prices Lack
Significance as Profession
ais Still Hold Sway.

The stock market yesterday continued
TO be dominated almost entirely by pro-
fessonal operations and what changes
did occur in the general list were lack
ing in significance. The bond market
was irregular with United States war
loans moderately strong and certain
corporate issues. notably Chicago, Mil
waukee and st. Paul convertible AIS
and debenture 4s. In free supply at de-
clining prices. Commodity markets did
little on the whole. Wheat made a
new high, the December option selling
above s1.2s a bushel. but a reaction oc-
casioned largely by profit taking op-
erations wiped out most of the gain.
There were no developments yester-
day which would INDICATE that previous
suggestions that a dull and featureless
stock market was in prospect for the
next week or two were unfounded. Pub
lie interest continued at a low ebb with
little sign of revival on large scale at
this time The manner in which Cali
fornia Petroleum, the feature of yes
terdays market. was bid up suggested
pretty plainly that pool operations were
almost entirely responsible and that
short covering played big part. The
strength in Pan-American Petroleum
shares was likewise the result Of pro-
fessional operations based on merger
rumors which are entirely baseless, ac-
cording to statements Of those In con-
troll of the company.
There seemed to be little more than
professional speculation in the early rise
in the grain market however. Yester-
day mornings news chronicled the de-
cision of the Federal Reserve Board to
increase materially the amount of farm
credit which the system is at present
extending. According to these dis
patches from Washington 1t has been
determined TO permit the redscoCnting
at Federal Reserve Banks Of six months
bankers acceptances drawn by growers
of cooperative marketing associations
to finance the marketing of nonperish-
able staple agricultural products. This
was construed as a big step in aiding
the farmer and had its reflection in a
sharp early rise in the grain market
which affected not only wheat, but oats
and corn as well.
The foreign exchange market was
very irregular Early weakness sent the
rate on London down to around AGO,
where It showed a drop Of more than
nine cents as compared with the high
mark for the four year period estab-
lished only last week. This decline. as
! those Of preceding days. suggested
clearly that the advance of last week
was very much overdone. There is no
doubt that the announcement made by
j. p. Morgan & Co on Monday that a
Germany loan could not be considered
under present conditions respecting rep.
arations was most effective in bringing
about a drop in sterling.
The more sober minds were inclined
TO the same view last week when the
financial community was in quite a
turmoil following the publication Of
Washington dispatches suggesting that
a tremendous loan to Germany was all
but arranged for. The only surprising
thing about the stupendous speculation
In sterling last week was the manner in
which the statements OF Wall Street
bankers was ignored, while everything
coming from Washington was accepted
as gospel truth.
Wall Street pretty generally is keep
ing itself busy at this time forecasting
the outlook for 1923. There is a remark
able unanimity Of opinion with respect
TO prosperity in business and industry
as a whole. but even more remarkable
is the manner in which stock and bond
market operations are being withheld
for something more concrete than fore
casts. The failure of the financial COM
nlunity to discount the prosperity which
is being predicted might even be re-
garded as suggesting doubts OF the sta
bility Of predictions.