The New York herald., 1922-10-21
FINANCIAL NEWS
AND COMMENT
Downward Trend of Stocks Is
Reversed-Marks 1000 to
Dollar, a New Low.

If any further evience were needed TO
show that the downfall of the Lloyd
George Government had little or moth
ing to do with the movements of the
various markets on Thursday it was
supplied in yesterdays session, when
of trend. The general list OF stocks and
bonds recovered from the slump of the
preceding day, sterling exchange
worked higher and cotton made SUBJ
stantial gains. while the grain market.
in day OF narrow fluctuations, re-
corded slight net losses in most in
stances
So far as the stock market was con-
cerned. 1t was still dominated almost
entirely by professionals. The principal
point of difference between yesterdays
market and that of Thursday was that
the professionals committed to the ad-
vance gained larger measure of sue
cess than the clique operating for the
decline. On Thursday the positions
We're reversed.
Public interest in stock fluctuations
was little greater yesterday. but this
was because some OF the lower priced
stocks participated in the advance
Most of the advances during the last
week have been confined to the high
priced stocks such as Standard Oil of
New Jersey, National Biscuit Mexican
Petroleum &C.. and it has always been
difficult matter TO attract a following
in issues of that type.
Sterling exchange resumed the ad-
vance which had been interrupted by
the resignation OF Lloyd George and his
Cabinet. 1t did not duplicate the best
price OF the preceding day. but was
moderately strong nevertheless. The
most interesting move in the exchange
market was in German marks, which
declined violently to point where the
currency unit could be bought at the
rate of 1000 for 81. There were several
items In the news which might be ex-
pected to exercise a depressing influ-
ence on the market for German money.
First, of course, was the resignatio of
Lloyd George. The announcement of
Louis Barthou, French chairman of the
Reparations Commission. that France
demands a very rigid control over Ger
man finances was likewise no surprise
Certainly there was small reason for
expecting any moderation in France S
attitude on the British moratorium pro-
posal. particularly since Lloyd George
is out of the picture.
The German bank statement yester-
day revealed new high record in cir
culation. which now stands at 374. .5O6.-
10000 marks. an advance of more than
30 O00. 100000 marks in the last week This.
too. was not surprising. but II suggests.
nevertheless. that the decline in marks
would have been uninterrupted even If
the defeat of Lloyd George and the Bar
thou pronouncement had not been in
fluences In the market. Probably they
did no more than to accelerate the drop
somewhat.
The indication toward the close of
thursdays market that the sudden big
advance OF the tax exempt 3h per cent.
war bonds on that day was somewhat
a false move and largely the result of
the execution of an urgent buying or
der was borne out yesterday, when fur
ther declines brought the price Of that
issue down to l00.s2. drop of 220 from
the high mark of the preceding day.
Other Liberty bonds moved narrowly and
with some irregularity. but most Issues
declined slightly as the net result OF
the days operations. Cotton was def
nitely strong. and all options sold with
in a few points of the years high level
Call money held at ~ per cent. all day
with little indication of easing just yet.
Statements that business and indus
trial conditions are not as good as In
the last few weeks are refuted In week.
ly reviews OF the general situation. Ex-
cept for the item OF collections. one Of
these reviews sets forth the general
trade and industrial situation as the
best since the latter part of the spring
of 1920 Added to these indications are
the continued heavy car loadings and
bank ciearings &c. which leave little
10 be asked in the way Of assurance as
to the actual condition of affairs in the
United States at this time.