The New York herald., 1922-11-04
FINANCIAL NEWS
AND COMMENT
Buying of Stocks Is Resumed
Near Close, Putting Prices
substantially Higher.

The stock market in the last hour of
trading yesterday gave more or less
convincing demonstration of the improved
position resulting from the violent reac-
ton of the last fortnight. After fuctua-
tions Of an extremely narrow character
through most of the session. there came
into the market quito suddenly sue
cession Of buying orders which ad-
vanced the general list substantially
above the close Of the preceding day.
There were no particular news develop
ments which would lead to such sudden
activity. The movement suggested rather
that the action of the market during
the early hours had revived confidence
and that buying power which was beine
held in check until something more con-
vincing than Thursdays rise was seen
was allowed to take its course.
One of the outstanding features Of
the last hours trading was the quick
runup in shares of the United States
Steel Corporation from los to 107B.
The steel stocks had been particularly
sluggish all through the early trading
and that activity should break out In
that particular group, led by Steel COM
mon. was regarded favorably by traders.
Stocks In the automobile group ad
vanced rapidly after announcement was
received here OF the price advance by
the Studebaker Corporation. The advance
in terms of dollars and cents was not
great and would not be likely to have
tremendous effect on the earnings of
the, company. OF far more Importance
was the effect of tho announcement on
Wall Street spirits.
For nearly two years the trend of
automobile prices has been steadily
downward and the indication supplied
by Studebaker's action that the turn
is at hand furnished plenty of fuel for
a constructive demonstration in motor
stocks. AS matter of fact, 1t Is not
regarded as likely that the motor and
motor accessory companies will expert
ence the same seasonal slump this fall
that they usually do. Business on hand
Is of nature to keep the plants In
pretty satisfactory operation through
the period which ordinarily is very lean
In this. connection It Is interesting to
note that two accessory companies,
both supplying a very substantial por-
ton of the industry with their particu-
lar product. are running far ahead of
previous records. One OF them, in fact.
has Informed its bankers In New York
that 4. is booked ahead at full capacity
to the end of 1923.
Bonds advanced yesterday, led by tho
Government issues. All United States
war loans were substantially higher
with the exception of the called AS
The new AZ per cent. Treasury bonds
recovered once more, getting up to par
for the first time since they were sold
so heavily a week ago.
More new high marks were estab-
lished in the cotton market. with the
December option selling at 25.10 and
spot cotton at 25.15 cents pound. This
is the first time in many months that
cotton has sold as high as % cents
pound. but ample reason for its strength
Is found in the crop reports. the con-
tinued expansion of export business, &c.
Foreign bonds were strong in the face
of renewed weakness in certain con-
tinental exchange rates.
Sterling held firm around the levels
of Thursday but both French and Bel
gian francs made new lows for the year.
Paris checks sold down to 6S4. which
compares with 767ls only month ago,
while Belgian rates declined to 6.3s, in
contrast with 7l5A early in October.
Marks again made a new low.
Call money renewed on the Stock Ex-
change at per cent. but In the late
trading there was a recession to ~
per cent