The New York herald., 1922-11-02
FINANCIAL NEWS
AND COMMENT
Extreme Depression in Stock
Market Is Followed by Sub
stantial Rally.


treme violence. but in the late trading
there was rally of substantial pro-
portions, with the result that big re-
coveries from the lows of the day were
registered. The suddenness and extent
of the rally suggested that professional
operations for the decline had been over
done for the moment. and that urgent
short covering had been instituted be-
cause of the pinching process so fami-
liar to professional operators.
UP to the very moment of the rally's
beginning there was absolutely no in
dication that the decline had run it's
course. and for that matter. the upward
reaction itself was not particularly sig
nificant After three days of sustained
and violent declines it was not at all
surprising that very sharp rally should
occur.
or more interest, perhaps. were sew
eral factors tending to emphasize the
continued expansion in business and the
manner In which the Improvement Is
being felt in certain individual cases.
For the first time in about two years
total car loadings over a weekly period
crossed the 100000 mark. This in itself
is sufficient evidence of the enormous
business that the carriers are doing
and indicates that the bad earnings
statements for September. during which
period the costs of operation were alb
normally high. due to strike conditions,
are but a momentary interruption of
the improved trend noted all through
the present year.
1t Is argued in certain quarters that
the railroads can do too much business
and that when car loadings get beyond
a certain point the ratio of earnings
declines. This may be true, but that
point has never been clearly defined
and it can hardly be said that it has
been reached yet. Certain it is that
the outlook for the carriers at this time
is excellent.
Two more developments Of the day
which could not be read otherwise than
as constructive were the quarterly
statement of the Midvale Steel Ord
nance Corporation and the resumption
of dividends by the National Enameling
& Stamping Company. Mdvales show
ing was particularly good when COM
pared with that of the United States
Steel Corporation. The latters earn
ings were increased very slightly in
comparison with the preceding quarter,
but Midvale returned a profit before
interest charges and depreciation of
$1,076.921, which compares with 1884,
374 In the preceding quarter, a tremen-
dous percentage increase. At the same
time Midvale lowered it's deficit after
all charges from the S1.435,111 of three
months ago to $760.864.
The resumption of dividend payments
a surprise. having been forecast for
some weeks past. was nevertheless a
very significant factor. indicating that
the directors feel reasonably sure the
turn for the better in the companys af-
fairs is something more than transitory.
Cotton prices reacted sharply early in
the day, but before the close there was
decided shift in the trend and final
prices were for the most part few
points above Tuesdays close One very
significant factor in the cotton market
yesterday was the days export report.
| This showed total exports of 124,142
bales. by far the largest in long time.
| OF this total 46.sS4 went to Great Bri-
tain, 14,490 to France, 62,26S to other
points on the continent and 500 to
Mexico. This brought the total ex-
ports for the season up to 1.444.S63.
which compares with 1.76293S a year
| ago. If this renewal of activity in
cotton exports is maintained for any
length of time. the unfavorable differ
ence between this years figures and
those of last season soon will be wiped
out.
Foreign exchanges moved fractionally
| higher with business largely of profess
| sional character. The bond market
| gained a little more in activity and
United States Government issues. while
substantially higher at one time. closed
| irregular. Foreign bonds did better.
Call money ranged between 5 and per
cent.