The New York herald., 1922-03-02
FINANCIAL NEWS
AND COMMENT
Sharp Fall of Wheat Prices
Unsettles Stocks-0ther
Markets Steady.

Sharp reaction of wheat prices and
irregular recession of stocks and cot
ton which occurred yesterday appeared
to be related more to speculative con-
ditions peculiar to those markets than
to changes in tha basic situation of busi-
ness and credit. In view of the fact
that wheat for May delivery had stood
this week more than 80 cents bushel
higher than on February and corn
is cents a bushel above the February
price there assuredly was opportunity
and incentive for profit taking sales.
The rapidity and extent of the days
descent OF grain quotations, amounting
to nearly cents a bushel in May wheat
and about 21a cents in corn at bottom
prices indicated that realizing was
actively pressed. but once that sort OF
selling was completed quotations began
to recover. The same sort of a market
was seen In stocks. periodic dips down
ward. led by speculative favorites, be-
ing followed by partial recoveries. While
many industrial stocks were point
lower at the close than on Tuesday,
quite a number were above Tuesdays
level.
Point was lent by the action OF foreign
exchanges and bonds to the thought
that temporary influences had affected
the other markets. Sterling reached up
to a new high point above 4.44 in the
morning. francs and lire went forward,
and in the midst Of generally broad and
strong bond market Danish and Swedish
loans and Toxic 5s distinguished them
selves again by selling higher than on
any other day of this year. The ex-
changes closed under their best quota
tions for the most part, but without re-
f!ecting any great amount Of selling.
The fact that the steady forward pro-
cession of exchanges on Western Europe
has not been more severely interrupted
by occasional setbacks than those seen
last month would ba remarkable were 1t
not for the known situation of inter-
national trade. Much of the present re-
duced flow of exports is being financed
through private credits, and the supply
of hills consequently Is reduced. But
more important factors in this market
have to do with gradually clearing polit-
ical relations between several European
countries, notably England and France,
the outlook for constructive work in the
Genoa conference, easing money condi-
tions and prospects for more active In
terchange OF goods in the next few
months an are having practical and
sentimental bearing on markets. Pros
poets for England's resumption Of trade
settlements on gold basis certainly are
measurably nearer than seemed possible
at the end of 1921.
This weeks discussion Of steel trade
conditions as recounted in trade period
icals is worthy OF more than passing
attention. 1t is clear that 60 to 50 per
cent. mill operations OF the United
States Steel Corporation show marked
Improvement compared with the ratio In
the first week OF January. because IN
that week the promises of December ap-
peared to be nullified. The year opened
with operations slowly retreating from
around SO to As per cent. and inde-
pendent mills went to considerably
lower basis. The Iron Age estimates
that the country's plants on the average
are at SIS per cent, and with consider
able railroad buying and structural
contracts close at hand the outlook TOT
fairly active business IN mills TINS
~ Wtsarr NfaVsNN IA
of mig iron prices in the last few days
Is probably a better measure OF the
underlying steel position than the ten
dcncy OF steel quotations to shade OFT.
Call money firmed from ~ per cent
to per cent.