The New York herald., 1922-10-06
FINANCIAL NEWS
AND COMMENT
Stocks Soar as Public Partici-
patton Aids Professional
and Pool Operators.

Advances in the leading financial mar
kets. begun two or three days previously.
continued with great vigor yesterday
morning and it was not until the close
of the days business that evidences Of
Irregularlty and slowing up made thei'
appearance.
1t was evident that the revival of
confidence necessary to resumption of
the upward trend, especially in securi-
ties, was complete and that not only
were professional and pool operators
once more definitely committed to the
constructive side. but the public. too. as
indicated on Wednesday, again was In
a frame of mind to participate in the
dealings.
While the bond market, the foreign
exchange market and the commodity
markets advanced it was in stock trad
ing that the most significant operations
were revealed. Some highly speculative
issues and some standard investment
issues were in extraordinarily heavy
demand. and many of them made sem
sational gains.
Particular attention was paid to GER
tain stocks selling at very high prices,
notably Standard Oil of New Jersey,
National Biscuit. &c. In these stocks
new high records were made.
Pierce Oil advanced violently on pub
lication of news that new, strong inter
ests had entered it's affairs. Unfavorable
rumors concerning the prospects 1or
Pierce have been going the ROUNDS lot
weeks and as result large snort
interest had been built up. The presence
of this short interest was manifested as
soon as the news was published, and
attempts were made to cover, resulting
in a. gain of 13 points in the preferred
stock.
Standard Oil stocks still continue to
occupy the center of the speculative
stage, and yesterday Standard or New
Jersey was shot up more than 16 points
to 222.
Visions of huge stock dividends, big
extra payments and other bount'es Tor
holders of various Standard OIL secure
ties have been conjured up and an
nouncement that Standard Oil of Califor-
mia will distribute S10O,0O0,OOo melon
before the end of the year only served
to inflame the already unreasoning
speculation in those stocks. That these
companies have tremendous assets,
valued at many millions of dollars
which do not appear in the balance
sheets Is generally accepted
That they will at some time distribute
something very handsome to their
stockholders Is also scarcely to be ques'
toned. But that they will do it now
or in the immediate future is matter
Of doubt at this time and it would not
be surprising If it were discovered soon
that the wild speculation IN the
Standards has been overdone for the
time being.
Turkish affairs have ceased at least
temporarily to have any effect on the
market: indeed. it Is extremely doubt
full if they played a really important
part at any stage OF the game.
No better index to the status of af-
fairs in Europe has ever been discov
cred than the foreign exchange market
which always reflects the opinions and
convictions of ltadlng international
bankers, and the foreign exchange mar
ket at no time showed extreme weak
ness any more than at present. With
the Near East outlook much brighter
It is showing inor9.nate strength. Ex-
change rates were moderately strong
yesterday. but business was very quiet
and the small mo yements were entirely
without significance.
Short covering transactions featured
the day in the cotton market, with ad-
vances ranging from 81 to 46 poii-ts at
the close. The ma rket on Wednesday
had failed to record entirely its reac-
tion to the so per cent. condition re-
port, even though further marking
down Of the crop had not been entirely
unexpected.
In grain, too, covering was in order
and most options advanced.