The New York herald., 1922-08-01
FINANCIAL NEWS
AND COMMENT
Stocks Move Upward as Rail
Strikes Termination Is
Believed Near.

The markets for stocks and commodi-
ties moved yesterday in opposite direc-
| tions, showing clearly that while the
strike outlook was a factor in all of
them grain and cotton were influenced
by current conditions OF demand and
supply. The July wheat option broke
down 5 Il cents a bushel, and the more
distant contracts fell about to PA
cents, being depressed by increased Of
ferings from the farms. The other
grains were weak, and cotton closed II
to 20 points off under trading expecta'
ton that to-day's monthly Government
report would disclose a thriving state OF
the growing plant.
Stocks first went forward with con-
siderable speed, especially the rails and
railroad equipments. and afterward drew
back slowly. The impelling force be-
hind the upturn was the widespread ex-
pectation that President Harding's plan
for settling the rail strike would be
accepted by both sides. Comment IN
battle was pending onsthe seniority
problem as applied to striking shop
workers. and reiteration of the stand OF
Eastern, rail leaders against recognition
of the strikes seemed to direct late
realizing sales in the rail share list.
The days net price changes were
mainly gains, and some were substantial
although less than the initial advances
OF a point to more than points. Penn
sylyania. Chesapeake and Ohio. Norfolk
and Western and Baltimore and Ohio
were among the group TO reach new
high levels for this year, and strong
bulges of such industrials as Studebaker
Allied Chemical Crucble Steel and a
number of specialties betokened Arm
underlying speculative position.
The rise of Studebaker of course, was
directly attributable 10 its dividend in
crease from 81 to SO year with an
extra disbursement OF $1.5O share In
the next quarterly check. The stock was
very nervous. despite its rise, ana de-
clines of other motor issues carried their
own suggestion of speculative opinions
about the future. Several motor and
tire price cuts In the last few days have
indicated severe competitive conditions
in these industries.
Fairly rapid fluctuations OF the
foreign exchanges. especially sterilng
francs and marks. betokened 4 confused
state of mind in European centers over
the Preparations. This week important
news about British and French policy
coward Germany Is expected to develop,
but 1t was plain in the action OF ex-
change rates that London and Paris
were at sea over the allied program
Sterling in the morning. following
lower opening in London. receded frac-
tionally from Saturdays final price OF
4.445s and then came back close to the
starting point. Francs receded abruptly
and also recovered In the afternoon, and
marks, following new minimum price
of 143. cents at the start, rallied to
around .16 cents.
Whatever the outcome Of British and
French negotiations, in which talk Oh
the cancellation of Frances debt TO
Britain is looked for, 1t is certain that
the latter Is steadily going ahead with
her program of paying interest to the
United States. A lot OF $2,5OO.0OO gold
bars landed here over Sunday Tor the
British Governments account brought
the total of the current movement to
more than $30.000,00o.
The British Treasury Is evidently
handling the interest transaction with
an eye to preventing disturbance In the
sterling market. In expert banking
opinion she could send as much as $500
600. 900 gold year for several years,
without obvious sacrifice to her metal
lie reserves and the credit bases OF her
merchants 1t Is moot question
whether such costly payments would be
Of benefit to the creditor, as the United
States has already much more gold than
is needed.