The New York herald., 1922-07-06
FINANCIAL NEWS
AND COMMENT
Stocks and Bonds Show Trend
of Improvement-Market
Still Quiet, However.

! There was a distinctly better tone in
all markets yesterday. with a slight
lIcxpansion in both volume and breadth.
In the stock market especially the
trend appeared definitely improved. while
bonds were under accumulation most of
features of yesterdays market was the
substantial advance of Liberty bonds.
Practically all issues moved up and
several of them established new highs.
figure of 100.50, while the Fourth Ans
made top of 100.3S. The latter issue
is representative one and the ex-
tremely heavy trading established be-
yond doubt that there is heavy buy
ing of Libertys for reinvestment Of
funds received on interest and prin-
cipal payments on July 1. This action
In the bond market allays once and for
all any little suspicion that may have
lurked in ones mind concerning the
reality of the easy money situation.
Call money reflected yesterday the re-
turn to this city OF funds temporarily
withdrawn during the midyear payment
period. After opening at Az per cent
money eased off to closing figure OF
per cent. AS the funds Withdrawn from
the call market during the last week or
two are replaced it seems certain that
the easy rates of a fortnight and more
ago will once more rule
The stock market still reflected the
prolonged holiday through its quietness.
but the activity was greater than on
Monday and the trend was decidedly
more definite. Trading in stocks took
on more significance yesterday than 1t
did either on Friday of last week or
Monday of this week. for while the pro-
fessional element still dominated the
market there was enough buying of the
ing of interest. That stocks are In
strong hands was proved during the ex-
traordinarily dull sessions of preceding
days when professional efforts to work
prices to lower levels went practically
unrewarded. Railroad stocks reflected
the better news developments in con-
nection with the strike, and most of the
lndustrials. with the exception of the
Mexican oils. were marked up with more
or less ease. The shares Of Mexican oil
companies suffered severe reaction fol-
lowing report that salt water. the
specter which Is constantly haunting
holders Of these securities, had invaded
a 80
Petroleum, biggest Of producers In that
field, naturally led the decline, getting
as low as 1854, of about 40 points
from It's high of last week. AS a re-
suit Of yesterdays reaction and one or
two previous setbacks Mex. Pete has
now lost considerably more than half
Of its sensational gain of a fortnight
back.
Technical considerations more than
anything else were responsible for the
setback given the cotton market yes
terday. Following the big and unex-
pected rise of Monday prices eased of
from 23 to A. points. Trading was
largely in the hands Of professionals,
and with the huge short interest elimi-
mated. or nearly so. In Mondays SEN
sational advance little difficulty was
experienced in turning quotations to
lower level. There was sufficient sup
port In the market, however, to prevent
any sharp break.
Mixed movements featured the foreign
exchange market While sterling showed
an Enthusiastically strong tendency, get
ting above 4.45. francs declined sharply
and German marks made another new
low. Heavy selling of both francs and
marks was reported to have originated
in London, but the purchasing Of ster-
ling begun several days ago by a promi-
nent New York institution continued.