The New York herald., 1922-11-14
FINANCIAL NEWS
AND COMMENT
Diverse Trends in Financial
Markets-StOcks and
Bonds Are Weak.

Wall Street saw another curious mix
kets yesterday. Stocks and bonds were
weak all day. Foreign exchange, how
ever rallied sharply and the commod-
ity markets were likewise strong. 1t
was more or less difficult to adequately
explain this irregularity of trends.
Much was made in professional cir
cles OF the continued uncertainty in the
Turkish situation. Undeniably affairs in
the Near East are in an exceedingly del
icate state. Moreover. cables from
abroad suggesting that France and
Italy are still at odds with Great
Britain In determining methods to be
followed in handling the Turkish situa-
tion could not be expected to allay ap-
prehension.
Nevertheless, close students of the
financial situation will not permit their
, Judgment to be stampeded into all sorts
of pessimistic predictions by panclsy re-
ports from abroad until the foreign ex-
change market gives some indication
that international bankers are greatly
alarmed. Yesterdays movements OF
foreign exchange rates, on the contrary.
got above 4.47 and French and Belgian
rates also rallied sharply. German
marks held most Of the day around rs
hundredths of cent but German cur
rency long since has ceased to be any
thing but curiosity in the local mar
ket
The German bank statement showed
another increase OF nearly $4,000, 000.-
600 marks In circulation which brought
that item up to more than SOC, 1000, ,00o.-
600 marks. Evidently the German Gov
ernment is making good its recent
promise 10 meet ali it's needs through
the issuance of billions OF new marks
every day. The German bank rate was
advanced from to 10 per cent, which
! is the highest it ever has been
1t is quite likely that the weakness
/ in the stock market was due more
| TO conditions within the market itself
than to outside influences. A top
heavy price structure. coupled with
all sorts of encouragement to specu-
lative operators for the decline, brought
| about a situation where n very drastic
reaction was in order. That this re-
action was started by professionals is
clearly evident, but it has gone to
the point where real liquidation has
become a factor. Some of this liquida-
tion came about as a result of calls
for margin, and some of It represented
sales from those spectators who have
seen their paper profits gradually dwin-
die in the last fortnight and who have
decided to take what profit they have
left and get out of the market until
the present uncertainty has cleared
Much the same Is true OF the bond
market. although here the added factor
of Il tighter money market is important.
~ through the list yesterday there
s-s sharp recessions in bonds. Espe-
cial weakness developed In foreign gov
ernment bonds, many of which sold at
new lows. 1t is no more reasonable
to connect the decline in foreign bonds
with the Turkish situation in view of
the movement OF foreign exchange
rates than 1t is to attribute the fall
of stocks to that factor Weakness
in the general bond market was
due more to disturbing reports from
Washington to the effect than some
new and radical tax changes were in
Contemplation than TO any other sim
gle factor.
Cotton maintained a strong tone all
day. most positions closing close to the
26 cent level with some above that fig
ure. All grain prices were moderately
higher than on Saturday. Call loans
on the Stock Exchange were made at
8 per cent.