The New York herald., 1922-10-22
FINANCIAL NEWS
AND COMMENT
Cotton at Highest Prices in
More Than Year-StockS
Show Irregularity.

Except for a new demonstration In
railroad shares which the financial COM
munity likes to believe have good stock
dividend prospects price movements on
the Stock Exchange yesterday were mar
row and irregular and almost entirely
without significance.
The publication of Secretary MELONS
letter. in which he put the official stamp
Of approval on the Standard OIL Com
pany of New Jerseys 400 per cent stock
dividend and Indicated tha. the same
attitude probably would be taken toward
other attempts to capita lize huge surplus
accounts was the signal for a new buy
ing movement in such stocks as Della
ware, Lackawanna and Western. Mexi-
can Petroleum. Norfolk and Western.
National Biscuit and others of that
type.
Although the average volume of trad
ing during the last week was pretty we'll
maintained in yesterdays short session
there was confusion OF movements.
No little shor. covering was seen IN
certain issues, which are more or less
violent in their movements and which
traders did not care to remain short of
over the Sunday recesA At the same
time it was plain that many operators
for the advance were not too willing to
retain their holdings and risk the loss
of substantial profits because of some
piece of news which might develop before
Monday. and quite bit of profit taking
was in evidence.
One of the interesting spots in the
market was the extraordinary strength
OF Porto Rican-Americar Tobacco shares,
which advanced at one time about Q
points above Fridays close. This Is
stock which ordinarily is inactive; in
fact, over the period Of the last four or
five years there have been few if any
sales of it on the floor of the Stock Ex-
change. The sudden activity. therefore.
attracted a great deal OF attention and
may have been an important factor in
sensational rise, which at yesterdays
high aggregated more than % points
from the low of Wednesday.
This stock Is closely held and any at
tempt to make an active market on the
constructive side is bound to result in
Garner in the last several years is ex-
cellent and its dividend reosrd just as
good. 1t is quite possible that the stock
dividend fever which has affected SO
many stocks In a quite similar position
is really the motive behind this move.
About the only real move Of impor-
tance In financial markets yesterday
however. was a further sensational ad-
vance in cotton to a new high for the
year and a gain OF about $3.50 q bale
over Fridays prices. Spot cotton sold
close to the "a cent level for the first
time in more than year. The present
appreciation in cotton values lacks the
element of speculation which so fire.
quently marks wide changes in COM
modify markets. There is far better
basis for the current advance than
usually is found.
Mills are running at full capacity, and
in some cases on double time At the
same time exports OF cotton are advanc-
ing steadily. and there is no reason
which Is apparent at this time to expect
shift. Cotton goods prices have con-
tinued to soar and most mills have
withdrawn offerings from the market
pending stabilization of quotations. At
the same time opinion regarding the
final Government crop report, due around
the first OF December, is not any too
certain. and the best opinion az this
time is that the estimate may be TO-
100000 bales, or even less. which would
be far below takings last year.
Foreign exchanges moved irregularly
again. with some rates advancing, while
the German mark again made a new
now record at 2h hundredths of cent
Francs also made new low for the
year. Liberty bonds moved within mar
row limits.