The New York herald., 1922-11-29
FINANCIAL NEWS
AND COMMENT
Stocks Move Upward After
Long Backward Swing
Bonds Also Strong.


changes the financial markets gave a
much better account Of themselves yes
terday. Stocks. bonds and grain ad-
vanced sharply. while cotton held firmly
just a little above the closing levels Of
Monday. So far as the securities mar
kets were concerned the rallies APP
peared to be based on nothing more
than technical conditions and had no
more to do with news developments than
have the declines in both bonds and
stocks in the last ive or six weeks.
Ono thing has become apparent, how
ever. That rs that stocks have ap-
preached level where they are finding
a great deal more evidence of support
It cannot be said that the public is get
ting back into the swing OF stocks yet,
nor is/it entirely true that insiders VINO
were selling stocks at the higher levels
of September are repurchasing their
holdings completely. Nevertheless, there
was more buying to be seen In yester-
days market from other sources than
the shorts than at any other time since
the decline got under way.
Another point which was moro or less
impressive was the manner in which
popular pool stoclss>led the rally. There
was every indication that the pool oper-
ators who had disposed of their specula-
tive holdings some weeks ago were once
more following tho principle of accumu-
lation. This does not suggest. however.
that the bottom of the decline has been
seen, for 1t frequently happens that
vicious bear drives are launched against
the general list In times like these for
the very purpose of aiding the process
Of accumulation at even lower levels
Advances in the general list Of stocks
ranged from one to six points, while
some Of the extremely speculative is
sues, such as Mexican Petroleum, Stand
ard Oil Of New Jersey, &c, recorded
gains of as much as 13 points. The an
nouncement Of dividend on American
Can. a development which, has been
routed from time to time for many years
and which never before has material
ized, failed to advance the price of that
issue more than y Of point above the
preceding days close. OF course the tre-
mendous advance which the stock has
had this year has discounted the pay
ment of dividend at the rate of per
cent. so when the rate was made known
there was little reason for expecting
much in the way of fireworks.
Bonds moved generally higher. al
though business In that section was
comparatively light. Liberty issues
were about evenly divided between
gains and losses In the net changes for
the day, but the moro speculative issues
and some Of the high grade rails were
strong. News from Washington to the
effect that Congressional leaders who
are making the greatest efforts to
amend railroad control statutes had
consented to abandon their plans to
force action In the present session no
doubt helped railroad securities.
The same irregularity prevailed In
the foreign exchange market which was
noted on Monday. Sterling reacted but
a little from the new high mark estab-
lished the day before. but the decline
in Belgian and French francs continued.
gaining in violence until just before the
close, when there were some signs OF a
rally. So far as can be seen at this
time there isNabsofutely nothing In the
foreign exchange situation to explain
the decline except tremendous specula-
ton. Reports that the decline was
caused by new developments in French
political circles in connection with
rumored plans for an invasion Of Ger
many by French forces were regarded
here as ridiculous.
Call money dropped from ~ to 4
per cent.