The New York herald., 1922-02-21
FINANCIAL NEWS
AND COMMENT
Stocks Stronger-Steel Gets tC
New High - Foreign Ex-
change Rises.

In yesterdays markets for securities
and commodities there was plain evil
dence that underlying factors again
were working in concert for higher
prices. even though some of those in
fluenees were OF doubtful economic
value In their more important aspects.
The upward rush of wheat futures to
the extent of AZ to 5% cents a bushel
measured an increase of purchasing
power of farmers to the extent that they
have wheat to sell, but the fact that a
basis for the rise was the outlook for
reduced yield of winter wheat carried
its own implications in regard to next
summers additions to the national
wealth. The markets are, however. In
clined to pay more attention to imme-
date events than to future possibilities,
and therefore it was clear that the ex-
tensiye advance of stocks was attached
to the movement of grain and the firm
tone of cotton futures. Furthermore, a
powerful upward surge of foreign ex-
changes aided in promoting speculation
were carried upward. parallel to the rise
of French exchange through the cent
level, to the highest point for the latter
since the spring of 1919. Sterling sight
drafts went close to the 440 level and
their rate was cents higher at the
close than it was on Saturday.
Taken all around the demonstration
of price strength was the most impress
sive of this year. The speculative
movement in stocks showed very slight
signs of discriminating between differ
ent classes of shares in fact, the rail
list, which had Jagged at times during
the February rise, was in the fore
ground much of the time. Several
City Southern, st. Louis Southwestern
common and preferred, and Southern
Railway preferred advanced a point or
more. Among the industrials United
States Steel common led with a new
high price of 92H, but that record of
improved speculative sentiment toward
the steel industry had a counterpart in
new maximum quotations for this year
in tobacco issues and fairly long list
of specialties. The average upturn of
more active stocks was in excess of
point, and little price unevenness fol-
lowed marking call money UP from
AZ to 6 per cent. in the afternoon.
Call moneys action indicated that
the depression of the market to level
unsatisfactory to lenders in other CEN
ters again had caused funds to flow
away from this city. The 3 u per cent.
rate for open market loans last week
proved. as 1t had before. to be the
signal for reduction of offerings. But
the market was affected yesterday also
by a s5o,ooO.ooo payment on Federal
farm loan bonds. recently sold here.
and tightening of the call rate was
hardly "a prophecy of permanently stiff
quotations.
Bankers have become unanimous in
tho belief that the contraction of the
has permitted offsetting credits, includ-
ing imports OF goods and the invisible |
outward movement of ship frelghts. gold
shipments. tourists money and inter-
est payments to London practically to
eliminate the usual American trade |
balance. financed largely in sterling. 1t
is likely that new attention will be
paid to export trade from now on,
il exchanges go still higher,
permitting foreign buyers to make pur-
chases at much better advantage than
they Gid in the last weeks of 1921.