The New York herald., 1922-06-14
FINANCIAL NEWS
AND COMMENT
Markets Are Firmer, Although
They Recover Only a Part
of Mondays Losses.

/
cotton and wheat which were not COM
pleted in Mondays heavy liquidation
came into the markets yesterday, but
! they found the situation entirely altered
over night. An initial period of uneasi-
ness was followed by hardening price
| tone. followed within an hour by broad
buying which featured business through
out the remainder of the day 1t was
evident that the topheavy speculative
position in stocks had been corrected.
for the time being at least. while recent
short sellers in cotton had to bid to re-
place their contracts. The 15a to 8
point net gains of the more active shares
and the "a to 3S point recovery of cot
ton futures replaced Just about half of
the preceding days losses. Wheat ad-
vanced half cent bushel. showing
less resiliency than the others.
The Street was not altogether con-
vlnced that the shakeout had been
completed, but the opinion seemed to be
held widely that Mondays violent re-
|
equilibrium. The search for explana-
lions got no further than the day before,
| comprising technical factors resultan,
| from a fairly continuous rise of eight
OF the actual Improvement in industry
and trade. 1t had often happened before.
The. experienced trader has no Illusions
about a market which runs all one way
for SO long a period. acting to pile UP
brokers' loans and promoting reckless
pyraniding of speculative purchases.
Presumably the undoing OF specula.
tion in foreign exchanges. speculation
which had taken too much for granted
| in the German loan negotiations, had
something to do With yesterdays decline
Of rates. But thepe was a, sounder
basis than this Cor the reaction, mas.
much as the apparently fruitless. dis.
cussions IN Paris have recreated con.
siderable depression over the out1ool
for Europe's financial and business re.
J Govery That is not to infer a banking
Il
continue to go forward. but the contin.
uance of the perplexing reparations sit.
4 uation in its old form is viewed as q
factor certain to retard commerce
vance from 4.45 to Ask, was decided
! ly weak. falling cents to 446h
/ French francs, however, gave the mos,
/ = lev, nP
! Compared with quotation of 9.1a
cents on June 7, the day that sterling
reached Its best quotation for this year
| francs went as low as S.74N. Quite the
lowest price since February 16. Lire
broke downward through the 5 cen,
level---they were nearly quarter cent
higher on June 7-and marks we're un.
| steady around 81 ~.
The May foreign trade figures, ISSUED
yesterday. were significant chiefly In the
way they showed close approach to a
balance between exports and imports
Imports OF merchandise valued at s254,-
100000 were the largest In thirteer
months. excepting the total in March
while exports of sS0s 100000 were the
smallest since February. The export
balance amounting to $4,000. 900 was
with the exception of the 1900, 900 In
| February, the smallest since September
I 1914. The s9.000,000 gold imports ir
| May were mere trifie compared with
those of many months last year, and
were the smallest in more than two
4 years.
Call money was lent yesterday at 4
and az per cent, rates which sug-
gested that funds accumulated i'm New
York in advance OF the tax payment
date were swelling demand loan Offer
ings.