The New York herald., 1922-11-09
FINANCIAL NEWS
AND COMMENT
Stock Market Rallies After
Weakness and Irregularity
at the Opening.

II the Democratic victory at the polls
was a disappointment to Wall Street
the action of the stock market did not
reflect II. After weak and irregu-
lar opening stocks rallied sharply and
toward mid-afternoon a covering move
nent developed that carried prices ma
terially higher than the closing levels
on Monday. Tho advance in stocks
caused surprise. Before the opening Of
the market there appeared to be no
definite financial point Of view and it
seemed to be any ones guess as to how
the election results would be received.
A. parallel was drawn with the elec-
ton results Of two years ago when
| stocks ignored the Republican landslide
| and continued to decline. although It
was hailed as a most bullish argument
1t was predicted freely before election
that a Democratic landslide at this
time would precipitate a general de-
cline in the financial markets. II the
weeks ago, when stocks were much
higher. the effect may have been differ
ent. AS 1t was the results came at the
bottom of an extended Decline which
may or may not havo been due to q
process OF discounting Democratic
victory.
Wherever clear cut banking ex
preston Of opinion could be obtained
1t was to the effect that the heavy
Democratic vote could be traced to the
unpopularity OF the Republican tariff.
1t was pointed out, however, that
President Harding can continue to
count on the cooperation OF the ma
Jority of the Senate and tho House,
and that anyway the new tariff cannot
be changed for two years. 1t was sig
nificant. bankers said. that wherever
the soldiers bonus was under considera-
ton It was favored.
Trading in stocks was active only In
spurts and the volume was slightly un-
der recent daily averages. The most
active period was in the last hour, when
United States Steel common was pur-
CidStu III 10 biOShS S0iiotH6 tiiO ~ iSS
up to 100 a, a net advance OF three
points. The other steel stocks and tho
equipments were strong In sympathy
and Crucible Steel, Republic Iron and
Steel, Bethlehem Steel, American Loco
motive and Baldwin closed higher. The
copper stocks, under the leadership OF
Anaconda, also gave q good account OF
themselves.
Public utility stocks, particularly the
gas issues, were active and strong, pre-
sumably rejecting relief from tho un-
certainties of the election. Consolidated
Gas advanced ! a points, and Columbia
Gas and Electric made similar gain.
In connection with both issues there has
been talk of recapitalzation. Some
sizable gains were made by the inactive
Industrial specialties and principal move
ments In railroad shares were upward.
Weekly reviewa OF the steel trade
journals were encouraging, disclosing
that total production of pig iron In
October was the largest of any month
since the end OF 1920. Several indus.
trial concerns. including Solar Refining
and May Department Stores, announced
stock dividends.
The news from the Near East was OF
character TO again upset the foreign
exchange market. and there were further
violent breaks in French and Belgian
exchanges.
An important advance occurred in the
cotton market based on Indications OF a
smaller crop than last year. Ginning
figures up to November ] showed $780,
$50 bales ginned. 1906, 900 bales under
tho total In the corresponding period
year ago. The cotton trade had antici-
pated 'higher figures and futures adj
vanced little more than IS bale.
Call money opened at 8 per cent. and
then advanced TO s per cent as a result
OF calling Of loans by interior institu-
tlons.