Evening star., 1922-11-02
SHARP RECOVERY
MADE BY STOCKS
Pronounced Advance From
Very Opening of Today's
Feverish Market.
BY STUART p. WEST.
nj Leased Wire to The Star.

BY Special Leased Wire to The Star.
NEW YORK, November Fur
ther recovery in both stocks and
bonds, another advance in wheat
prices and fresh weakness In French
cipal incidents in the markets today.
1t has been insisted all along that
the downward movement on the stock
exchange of the last two weeks had
little or no significance. so far as
the outside trade situation was con-
cerned. The rapid rebound of Wednes-
day afternoon ahd today confirmed
the correctness of this view. The OBJ
jective of the previous decline had
been to undo the excesses OF the MID
summer speculation. In accompnsn-
ing this, operations for the decline
were. in their turn. oNerdone.
What occurred in the last hour We'd
nesday and again in the trading today
was simply the natural recoil or a mar
ket which had been pressed down fur.
ther than was warranted by general
conditions.
stock Recovery General.
Recovery in stocks was very general
Naturally 1t was more rapid in the IN
dustrials. which had borne the brunt OF
the previous short selling, than II was
in the rails. where operations for the de-
cline had not been so much factor.
The railway list was up point or
more all around. Practical evidence OF
the prosperity of the railway equipment
makers was afforded by the declaration
of an 1S per cent stock dividend on
American Steel Foundries. This was
another incident OF the many similar
ones during the last month or more OF
the cheerfulness in most lines of indus
try. This sort of action certainly does
not fit in with any idea that business
leaders are looking with misgivings at
the future.
Bond Upturn Notable.
The upturn in the bond market
was even more notable than that in
stocks. A number of the railway
issues. even those belonging to the
strictly investment class, rose over a
point.
The foreign government group. un-
der the lead of the Belgian bonds.
which at one time were up over =
points. was also exceptionally strong.
In bonds there was no question. as
there was in stocks, of an overeX-
tended short account. But there was
the same recognition in the bond mar
ket as in the stock market. that
the recent selling movement had been
exaggerated
The demonstration in the Bel
gian governments and in the i'm
provement in French bonds were the
more remarkable in that they coin
cided with a decline in the exchanges
of goth countries. French francs in
particular getting down rather close
to the extreme low of week ago.
Under these circumstances. the weak
ness in the exchanges could scarcely
have been set down to any accentua-
tion of unea SineSS over German repa-
rations, but undoubtedly it was in
fuenced sentimentally by the new
low record established for the mark.
For the first time. the mark sold be-
low two one-hundredths of cent
Imitation Again Appears.
In connection with the renew ed
weakness in French exchange the
French bank statement for the week
was of special interest. The most
important disclosure here is that
after a fortnight Of heavy reduction
in paper note issues the tendency to-
ward imitation. which was so mark ID
a feature during August and Septem-
Der. again appeared. The increase is
comparatively small-only $1,000. 900
francs-but it is none the less signifi-
cant.
Sterling exchange held steady, and
there was a further advance in 1tal-
day, showed rise from 1884 to .o427
within a week. Largely this recov-
cry is measure of hope that the
new political regime with its policies
of work and economy will bring
about improvement in Italy's eco
nomic and financial situation.
Highs in EARLY Afternoon.
As a rule the high prices of the day
in the stock market were reached In
the early afternoon. In the last hour
trading quieted down, and while
there was a moderate reaction in the
greater part of the list. there was no
disposition to renew the aggressive
short selling and offering down of
prices that had gone on during the
first half of the week.