The New York herald., 1922-02-11
FINANCIAL NEWS
AND COMMENT
Stock Market Trend Irregular
Grain Futures Advance and
Sterling Drops.

An irregular trend or stocks, strong
advance of grain futures and further
decline Of sterling and franc exchange,
coincident with an upturn of lire and
several other foreign currencies. were
the principal features of yesterdays
markets. The rise of slightly more than
2 cents a bushel in May wheat was the
most significant event of the day. mas
much as the movement could be traced
directly to reiterations of unfavorable
reports on winter grain conditions In the
Southwest. AS the present outlook in
the Argentine is for a short crop, point
is lent to the American situation. as the
new crop period will be entered with
unusually small stocks. Preliminary
estimates suggest that the Governments
March 1 report will show no more than
S0,oo0.0oo bushels over and above spring
seeding requirements carried from 1921.
Last year the carryover was 116, ,o00. 900
bushels. At $l.321s bushel the May op-
tion reached a new high figure, and its
final quotation was only about a half
cent lower than that price. Corn prices
were practically the same as they were
on Thursday
Stocks were unsettled during most Of
the day. especially In the afternoon,
when Steel common began to undo its
rapid advance of Thursday. That re-
verse evidently was extended by the
monthly report of the United States
Steel Corporations bookings. showing
that its advance business had declined
26.736 tons in January. The shrinkage
was evidently the result mainly Of can
cellations, as preliminary estimates had
Indicated that receipts Of contracts and
shipments of finished materials had been
about even during the month. That
there should be cancellations just now.
when warehouse stocks are low, reflects
the Influence of irregular prices and ex-
pectations In certain consuming quar-
ters that a lowering of freight rates
later may bring quotations down. Steel
common lost TX points and recessions
nearly as large were recorded by other
steel shares
A great deal Of gooseflesh was evident
among brokers because of news that a
stiff tax on stock and bond transfers
had been settled In preliminary discus
sion of the soldiers bonus measure in
Washington, but the outlook in that re-
spect had less effect on dealings that
did the proposal for a 21s per cent i'm
post on corporations undivided profits.
With excess profits taxes out of the way.
the schedule Of 1922 for corporations
had seemed to be more satisfactory for
stockholders than was that OF 1921, but
the bonus bill program threatens to re-
store some of the old burden. Railroad
shares were steadier than were the
others and. although closing quotations
were under the days highest, many
fractional gains remained. Call money
eased from per cent. to AZ per cent.
after most of the days demands had
been met.
A reaction OF 2ts cents In sterling
tended to take the tops off OF several
foreign Government bonds with a con-
version privilege, and bonds as a whole
were less firm than they were on Thurs
day. Again a speculative demand for
second grade rail bonds was prominent
for time. but when buying of that
sort dried up the list flattened out
Quite likely the fact that next Monday
will be a holiday tended to promote
evening up of speculative commitments
In stocks and bonds and that influence
was at work in sterling. At the final
quotation of 4.33A for sight drafts. the
sterling rate was nearly 5l1 cents lower
than Thursdays maximum quotation.
So rapid a contraction afforded some
thing of a measure of speculation in
this market.