The New York herald., 1922-05-16
FINANCIAL NEWS
AND COMMENT
Stock Prices Unable to Hold
Against Waves Of Re-
alizing Sales.

The abrupt reaction which occurred
late in yesterdays stock market indi-
Gated that some of the forces working
for reaction had held over from last
week. Speculative exuberence over steel
merger plans created a diversion on
Friday and saturday which apparently
merely interrupted the markets tend
ency without altering it. In fact. the
desire of traders to convert into cash
profits accumulated in recent purchas ses
of steel shares helped to expedite after
Moons decline yesterday and prices were
weak at the close, many recording net
losses of point to 3 points. There was
nothing in the money situation to pro-
m;,te selling as the call loan rate stood
at u. per cent. or did the action of
other markets have a dampening effect
on stocks. Cotton, in the strongest mar
ket of the last two months. gained
s4.35 to S5.65 a bale in futures. all op-
tions being, at the sessions best levels.
above the 20-cent level, while the spot
article reached new high, point for the
year at 2125 cents a pound.
1t was plain from the start of the
stock market that efforts to carry steel,
copper and oil shares upward were
meeting much resistance. Profit taking
sales were swelled by heavy selling for
the short account. For time Lacka-
wanna, Crucible and few other indus
trial stocks were strong and there was a
show of strength among coppers and
several rails, but all drew back together
later in the day. Bonds were as slug
gish as they were in the most colorless
days of last week, French Government
municipal issues being in one of the few
groups to display firm tone, while most
others, including Liberty issues, were
rather soft. Several bits of news re-
ceived during the day supplied partial
explanations for pressure against Sc
curties. but it was probable that, in its
broader aspects, the stock market was
affected by nothing more important than
the absence of that confident specula-
tive buying, which, in March and April,
sought TO discount improvement in in
dustry. Evidence coming from many
sections of .i.c country continues to show
that business enlargement is gaining
power. The probability that stocks ran
ahead of sprng business growth is being
made the most of by spectators on the
short side.
The April foreign trade figures, issued
yesterday, were not satisfactory alto
gether and certainly failed TO record ex-
pected results from increasing manufac-
turing in this country. Merchandise ex-
ports. valued at 1921 900, 900. were
$4,000, 900 less than they were in March
and S19,000,000 smaller than they were
In April, 1921. They were the smallest
of any month of this year end the $217.-
100000 of imports were the lowest since
February. The shrinkage of imports
from the March total was $39,000,000, a
fall which suggested that the gradual
rise of foreign exchanges had acted to
depress American purchases abroad. The
cables told yesterday of sales of 10000
bales of cotton in Liverpool. the largest
Gays business in many weeks, and it
might be possible to infer from that in
terest in one of the leading articles of
American export that the May trade
figures would make different showing.
Far Eastern exchanges advanced
briskly, stimulated by another rise of
silver prices in London and New York.
The local quotation reached a new high
point for 1921 in a bulge of "a cents
an ounce to ~ Is cents. Allowing for
the usual speculative factor in silver
market dealings, the trend of prices late
ly has indicated a growth of business
in China and India. European rates
also advanced. The abandonment of
hope that real economic developments
could come from the Genoa Conference
had no effect on dealings.