The New York herald., 1922-09-20
FINANCIAL NEWS
AND COMMENT
Vigorous Upward Move Proves
War Talk Was Poor Excuse
for Mondays Selling.

The extent to which speculative opera
sharp break on Monday was indicated
in the action of the whole list yesterday.
If further proof were needed that the
disturbing political situation abroad had
been seized upon by the bear clique as
an excuse to depress stocks yesterday :
market furnished It. Stocks rallied with
vigor which made 1t extremely diff
cult for those who had sold on the pre-
cedins day to cover their short commit
ments at a profitable figure.
1t is to be expected that during the
course Of a long upward swing in the
stock market sharp reactions will oc-
cur from time to time, and 1t is also to
be expected that the time seized upon
to promote a reversal of that kind will
be one when preponderance of out
standing developments favors recess
sion. For the last two or three weeks
there have been evidences that the pro-
fessional and semi-professional element
In the stock market have been feeling
for the proper time in which to conduct
an assault. So often we're these signs
seen lately that they came to be ignored.
consequently the real attack on Mon
day found the street more or less un-
prepared.
Whether or not the bear group will be
satisfied with the success of Monday is
matter OF doubt. 1t has been the his
tory of similar market movements In
the past, however, that a victory such
as that OF day before yesterday serves
to embolden those responsible for 1t and
It would be decidedly apart from the
usual procedure should no further ef-
forts to break the market be made. The
way in which stocks rallied yesterday.
however, suggested that a large propor-
ton of the technical weakness in the
market, without which the drive could
not have succeeded, has been corrected.
News developments respecting the ac-
tivities of the Turk in the Near Eas.
Monday. Dispatches indicated even more
positively than on the preceding day that
England stands alone In her determina-
ton to move against the forces OF Kemal
Pasha. And yet there were no stocks
for sale yesterday. Trading on the
rally was In nowhere near the volume
that marked the recession of Monday
Buyers OF stocks were compelled to bid
spiritedly at times, and quotations
printed on the tape were In strings of
one hundred share lots, indicating ths
paucity Of offerings.
In the bond market there was a gen.
eral trend toward higher levels, espe-
cially in the foreign issues which sus.
taired the most severe breaks on Mon
day. Liberty bonds and certain railroad
issues moved within a narrow range, but
at no time was there evidence of any
disposition on the part of large holders
| to lquidate.
| Not only the stock and bond markets
but all others which on Monday reflected
| the war talk in the street registered a
complete reversal.
Cotton regained It's losses of the previ-
Gus day, while part of the sensational
gain in wheat prices was wiped out.
Foreign exchange rates. with the ex-
ception Of the Greek drachma swung
upward. The drachma declined again,
although not as abruptly as on Monday.
Call money rates stiffcned up once
more, In reflection of the fact that the
financial community is beginning to feel
the temporary stringency imposed by
tremendous. Government operations at
this time. The heavy drains caused by
the payment last week of income taxes
are now being felt by banks which are
receiving the checks drawn against them.