The New York herald., 1922-11-11
FINANCIAL NEWS
AND COMMENT
Professional Operations for
Decline of Stock Prices Are
Stubbornly Resisted.

Professional operations completely
dominated the stock market yesterday
and movements we're more or less mar
row and almost entirely without signif-
icance. Various pretexts for selling
stocks into lower ground were found,
including renewed whispers concern
ing the danger OF another attempt TO
pass a soldiers bonus bill, more Tur-
kish war talk. &C., but none of them
when held UP to the light of close
analysis stood the test.
For this reason even the professional
efforts 10 encourage selling of stocks
were only moderately successful. The
connection between Wall Street rumors
and stock movements in recent weeks
has been SO close that Spectators have
learned to study these rumors very
closely before permitting themselves
TO be led into commitments which they
soon regret
Further evidence was offered that
speculative operations are more or less
in control of the market for foreign eX-
change. After Thursdays substantial
recoveries. there was another sharp re-
cession yesterday morning, although
there was certainly nothing in the news
OF the day which could be considered
OF more alarming character than that
received the day before. The recession
was far more likely the result Of profit
taking after Thursdays moderate ad-
vance than anything else The rally
in the later hours of the day bore fur
ther testimony to the character of the
trading in foreign currencies. 1t can
not be denied. however. that recent
heavy exports OF cotton and grain have
had some effect on the trend of the
foreign exchange market
Hopes of an easing in money rates
we're dispelled when the Federal Re-
serve Bank statements were published
yesterday morning. The further eX-
pansion OF rediscounts and currency
bore excellent testimony to the extent
tc which industry is absorbing funds.
Another point of Importance was the
statement of the Federal Reserve Sys-
tenn showing Government deposits OF
L trifle more than s35. 600 600
When II Is recalled that interest pay
ments on the Second Liberty loan, due
next Wednesday, aggregate almost
twice that amount il will be understood
TO what extent Government Withdrawals
from member banks will be necessary
TO supply the funds. In addition is the
deficit in the reserve of the Clearing
House banks. amounting last Saturday
to more than s4.O00,00O. so that hopes
for an immediate easing of money rates
are certainly not bright.
The monthly tonnage report OF the
United States Steel Corporation. show
ing a gain in untitled orders of nearly
eli 900 tons. was probably better than
the financial district as a whole an
ticipated. The tremendous rush in the
closing days OF September : purchase
rails in advance OF the October l price
increase swelled the untitled orders as
OF that date by some three-quarters of
million tons.
II was argued that the huge gain in
September. coupled with the increased
ratio of operations last month. would
be more likely TO cause let down in
new business for October and conse-
quent falling off in untitled orders. Re-
ports from all over the country con-
cerning the progress in building, &C., are
such as TO cause one to wonder why
there should not be a steady and i'm
prcssive improvement in the steel in
dustry. Certainly there are no reasons
for expecting different results.
Bonds were quiet and moderately
firm In the commodity markets there
was a rather mixed display. Grain
moved within very narrow limits and
closed with only the smallest OF net
changes. Cotton. OH the other hand en-
countered a natural reaction following
the extraordinary advances Of the last
few days.