The New York herald., 1922-02-15
FINANCIAL NEWS
AND COMMENT
Strength in All Markets But
MOney-Exchange, Grain
and Cotton Do Best.

The strength of prices in all major
markets except money was so pro-
nounced yesterday as to make il difficult
to select more interesting and signifi-
cant movements. The rise of foreign
exchange. grain and cotton, however.
was more prominent than the upward
tendency of securities, because there ap-
between them. May wheat swung for
ward more than 6 cents a bushel and at
the days maximum of $1.39Ia a bushel
was 14la cents bushel more than the
l 'west price of Monday a week ago.
Cotton futures scored an average Cd
vance of close to half cent pound.
The magnitude of those changes lndi-
Gated the working of several powerful
influences. Undoubtedly the forward
swing of grain. especially wheat, has
been promoted by realization In foreign
markets. as well as on this side, that
present factors point toward a small
return from winter wheat planting CO.
incident with a relatively low total Of
wheat supplies from the last crop. That
foreign buyers have been active in the
markt in the last fortnight was proved
by the presence of large supplies of
grain bills in the exchange market yes
terday. The ability of the exchange
market to absorb offerings without
slowing down the rising trend of quota
tions discloses the presence of funda-
mental powers which have been over
coming opposition lately and presumably
are contained largely in the latest state
ments of British and American foreign
trade. Exports from the United States
in January dropped to the smallest
monthly. figure in six and half years.
Not only did the $279, 900, 900 of January
exports show decrease of $4,000, 900
from the December aggregate and of
$375,000 900 from the total Of January,
1921. but imports of s216, 100000 in
January were S2o,s00,000 larger than
they were in December and $1,000, ,000
greater than those of January, 1921.
The balance o. exports has been falling
so rapidly in the last thirteen months
that much support is supplied thereby
to the theory that foreign debts and
credits have been brought close to an
equilibrium through invisible credits
contained in ocear freights, interest, &C.,
and by gold shipments. The British
trade position was strengthened in Janu-
ary by the fact that while imports de-
clined more than S44.000,000 at the par
OF exchange, exports increased more
than $1S,0O0,000. Sterling reacted yes
terday from its best quotation, but left
off higher than it did on Saturday, as
did the other prominent European rates.
Stocks driftcd for "A time. evidently
held in check by thoughts Of o possible
large Government security issue in con-
nection with the bonus bill. But the
afternoon degree of confidence was
derived from Washington dispatches
that the bonus measure would not be-
come law ard in the last hour prices
advanced all around with considerable
vigor. United States Steel common at
80 was at it's highest level OF this year
and main rail and Industrial issues
gained Il point to 3 points. Strength
of railway stocks featured the business.
decline cf the call loan rate from ,
per cent. to per cent, with loans in the
open market at 3E per cent, aided
speculative sentiment.
The Liberty bond market acted In a
fashion which seemed curious in view OF
n possible issue Of new securities for
raising bonus money. They were only
slightly irregular i'm the morning and
became firm in the afternoon. The
market plainly was not disturbed by
events in Washington