The New York herald., 1922-07-08
FINANCIAL NEWS
AND COMMENT
Stocks Firm as Confidence in
Market Returns-1 Cent
Fetches 5 Marks.

The stock and bond markets yester-
day gave about the best evidence pos
sible of complete revival OF confidence.
Stocks were bought with conviction and
in the bond market the turnover in the
United States war loans as we'll as in
railroad issues was tremendous. with
the latter in many cases advancing to
new high levels. The heavy demand for
Libertys was about evenly matched
with the supply and as a result net
changes were negligible.
In the stock market the complete con-
fidence was in distinct contrast with the
uncertainty and caution which marked
the more or less feeble operations in
stocks during the last fortnight. The
upward swing of Thursday broadened
out very materially yesterday and a
tirely neglected for some time once more
became active.
The railroad issues were again In the
lead. but their advance in the last few
days had been so substantial that it
brought out some important profit TAX
ing. The way in which this profit TAX
ing was absorbed and the strength mani
Tested by the railroad stocks notwith-
standing the realising furnished con-
elusive evidence of the fundamental
soundness of the present market situa-
tion and proved beyond doubt that
the unhealthy technical situation which
existed less than a month ago has been
practically eliminated.
The broadening of yesterdays mar
ket was a very significant phase. Indus
trials which have been under more or
less pressure. or which have declined
from lack of support, suddenly became
active and many of them displayed
extraordinary strength. rising to new
high levels.
Pool operations were taken up once
moro with a greater degree of conf
dence. Investment buying of high
grade stocks was still an important
factor. The preferred stock of the
United States Steel Corporation. for in
stance, sold at 122, the highest price in
five years or more, while other similar
senior investment issues displayed every
evidence of persistent buying.
Such stocks as Studebaker. National
Lead. Union Oil. Barnsdall, Chandler and
one or two others. always popular with
those traders who enjoy short and
sharp speculative moves. were very ac-
tive, with Studebaker at a new high for
the year and at the highest point since
the big bull market Of 1919.
Mexican Oil stocks continued to re-
fleet liquidation influenced by the intru-
sion Of salt water In the Toteco-Cerro
Azul field. Mexican Petroleum sold as
low as 15912, off almost 80 points from
the high of last week. Nearly all Of
Mex Pete's sensational advance of
fortnight ago has been wiped out.
Copper stocks were markedly stronger.
Establishment Of IA cent price for cop
per metal and other favorable develop
ments within the industry has drawn
attention to the relatively low position
of the copper shares. Other metal
stocks, too. were strong.
The feature of the foreign exchange
market was further weakness in marks
and francs. with both at new lows, the
former getting down to 19-100ths of a
cent. The feeling that complete finan-
cial collapse for Germany Is inevitable
kas become almost conviction and ac-
counts for the persistent pressure against
marks. Other European nations whose
finances are allied with Germany's are
naturally affected and their currencies
are apt to follow the mark on its down.
ward path, although to a much smaller
degree.
Cotton was firm and some small pres
sure In the grain market brought
slightly lower prices.
Call money ruled firm between ~
and AZ per cent.