The New York herald., 1922-11-03
FINANCIAL NEWS
AND COMMENT
Stocks and Bonds Up, Revers-
ING Recent Trend-Another
New Low for Marks.

New high marks in the cotton market.
a sharp upturn in both bonds and stocks
and further break in German marks
10 new low levels featured developments
in the financial markets yesterday. The
most interesting OF the movements, per-
haps. was the complete reversal of trend
registered by the general list Of stocks.
The strength displayed by virtually all
issues throughout the session suggested
that for the moment at least the violent
reaction which had been in progress for
the last fortnight and more was at an
end. At the very opening the rally with
which the market had closed on Wednes-
day was resumed. Most issues opened
up fractionally. and under urgent short
covering moved into higher ground.
The covering Of short contracts soon
was accomplished. however, and Its place
as market factor was filed by a new
buying movement in the general list
The scarcity of offerings once some real
bidding got under way suggested that
stocks had been quietly and carefully
accumulated without ostentation during
the course OF the break. Certain il was
that in some of the favorite issues IL
from one to six points and more TO sup
ply the combined demand Of shorts who
were running to cover and spectators
for the advance who were convinced that
the decline momentarily was checked.
Once more developments and pool
operations affecting individual issues
were allowed TO have full play. AS a
result such stocks as May Department
Stores, National Lead. Mexican Petro-
leum, Public Service of New Jersey, Chi
cago Pneumatic Tool. America Ice,
American Express. &C., were advanced
several points on comparatively small
business. 1t soon was found that offer
ings OF these stocks were extremely thin
and that the only way they could be
purchased was by bidding which was
done.
In the bond market. too, there was a
far better tone. Foreign government
moved up easily on business smaller in
the aggregate than on the preceding day.
United States Government bonds were
firm, some of them advancing as much
as 30 points. The new Treasury AS
tailed TO advance more than a very few
points, but they Were in fair demand
most OF the day. 1t is not likely that in
the present condition of the money mar
ket substantial recession from these
levels will be experienced by the new
sonds. Indeed the wonder of the stua-
t,on at this time is that they should be
under par.
Three cotton futures options advanced
to new high levels yesterday some OF
them getting close to the % cent mark.
The better feeling created In that mar
ket by the new records for the year
being made almost daily in exports has
had noticeable effect on the course OF
! prices. Exports again yesterday were
at high figure. Grain prices, with the
exception OF wheat. advanced fraction
ally. Wheat quotations rece6ed some
what after the more or less violent ad-
vance OF the preceding day.
In the foreign exchange market move
ments were mixed Marks we're a feat
ure. with sales under two hundredths OF
q cent, making IL possible TO purchase
! more than 5000 OF them for 81. There
was absolutely nothing in the news de.
velopments OF the day to cause new
selling of German currency. Foreign
bank statements were not particularly
significant in their disclosures aside
from an increase In circulation reported
by the Bank of France. and It is to be
presumed that very large proportion
OF yesterdays operations In the exchange
market was Of q professional character.
The effects of Government with
drawals were not felt in the call money
market. the renewal rate OF per cent
remaining unchanged throughout tho
session IL Is quite likely that first of
the month requirements will sthfen the
rate before the end of the week