The New York herald., 1922-02-09
FINANCIAL NEWS
AND COMMENT
Sterling Up 2 Cents to 1886 1-2
Rails at New Highs-Many
Industrials Recede.

The markets contained yesterday so
great diversity OF price movements
that it is worth while describing them
before undertaking any comment Ster-
ling exchange gained cents to 4.36..
the best quotation of the session, being
the highest since July 81. 1919, and 8
cents above the price OF a week ago.
Franc and lire rates established new
| high levels for the present movement.
Wheat futures at Chicago advanced
more than cents a bushel in the July
option and the May contract went
cents higher than it did on Tuesday.
Cotton futures reversed their previous
trend. advancing $3.50 to SO a bale.
Railroad bonds gained ground, with
numerous industrial issues under a
heavy flow of buying. and stocks left off
with general reactions among manu-
featuring company shares after several
of them and number of rails had es-
tablished new high records for the year.
Relationship between those rather per-
picking movements clearly was not easy
to define. In fact, it appeared as
though special influences had applica-
ton to the markets separately. While
the upturn OF commodities might be
linked up with the persistent strength of
the foreign exchanges, it was possible
In the case OF grain to ascribe it's rise to
the purely domestic situation of the crop
outlook. A Kansas report, which stated
that 100000 acres planted last autumn
would return very little wheat because
Of unfavorable conditions in the early
growing period, confirmed the impress
sion derived from recent comment from
other sources about the .unfavorable win
ter wheat prospect in several parts Of
the belt. AS much as the security mar
lScts have been impressed by the rise of
grain prices since the middle of January,
such a factor as the one in Kansas was
unpleasant to contemplate, as it had an
official aspect quite unlike the usual
bearish reports of this season Of the
year. The financial community has long
hoped for a rise Of grain values which
would enhance the purchasing power OF
the growers, but when such an i'm
provement is the product of dwindling
output an entirely different aspect
arises. at was not improbable that the
activity Of short sellers in stocks was
increased yesterday afternoon by con-
temptation of the Kansas figures. The
chance that special transfer taxes on
securities would be included in proposed
soldier bonus legislation also aided par
tisans Of the fall Of values.
Steel company stocks were weak at
times and a long array of Industrial
specialties reccded more than a point.
The steel industry is in no more un-
favorable a. position than it was a
surveys showed improvement in mill
operations. But it remains an open
question whether or not so per cent
operations. with prices highly irregular,
are returning real profits and price con-
cessions on certain important products
indicate that competition remains de-
cidedly keen. a significant item in the
weekly report of the Iron Age, one which
may have considerable influence on tie
export business of American mills, was
the observation that increased ocean
freight rates. the vagaries of exchange
and export taxes, have practically re-
moved German competition from the in
ternational markets.
Call money went from per cent. to
5Ia per cent.