The Birmingham age-herald., 1924-03-17
RALLY OF FRANC VIEWED ASSTART
 OF NEW PHASE
Hope For Acceptance Of Dawes Plan Is
 Strengthened

{ NEW YORK, March 16.-(By Asso- , sociated Press s.)-Development in the foreign exchange market overshadowed events in other departments of finance and business during the past week, Well-posted- observers believed that Frances declaration of her intent to balance the national budget, the ar- rangement of large French credits abroad and the extraordinary rally in the franc, marked the beginning of a new phase in postwar financial his both heavy covering operations by spec
 In ral1ying approximately l 1-3c dur ing the week to 4a4 the franc reflected both heavy covering operations by spe- ulative and commercial interests which were short of this currency, and a. res- toration of confidence in the French financial position. This confidence was fed both by the explicit declarations for reforms by the French government and by the belief that the bankers who ar ranged the credits in the United States , must have received strong assurances as to the French fiscal and foreign policy. Committee Report Awaited
 The broader aspect of the question, and that creating most interest was the impending report of the Dawes com- mittee and the chances for reparation
 
 optimism in the best informed quar- ters over the outlook. The opinion was widely held that the franc had swung the balance too far against France and was likely to increase the difficulty of dealing with Germany.
 Tho rally in the franc and the demon stration of Frances ability to command financial assistance abroad, were con- sidered to have redressed the balance and to have made Germany more likely to accept the provisions of Dawes com mittee plan.
 In the domestic markets a 6-cent drop in wheat prices attracted considerable attention. The reaction seemed to be due to the liquidation of speculative &C., counts for the rise. The official fig ures on stocks of wheat on farms were disappointing, while the executive action in raising the duty on foreign wheat vas without beneficial results. As a con- sequence, the bulls sold out.
 Cotton Maintains Level
 Cotton maintained a fairly level tone, although the spot demand continued light. The situation in the drygoods trade was not particularly encouraging. The February figures for consumption and exports were, however, better than expected, and the technical position of The market appeared to have been great " strengthend by the recent s-cent de- cline to 271ac.
 Steel production remained intense with the material going directly into con sumption. There was a slight weaken ing of demand. in the east but Chicago mills were being pressed with second quarter orders. The market was a little easier but the change did not seem to be of much significane.
 Railroad car loadings for the week ended March l amounted to 945 000 cars, new high record for a week during the first three months of any year. With such an excellent volume of traffic, 1t was assumed that railroad earnings during February would prove to have been higher. An easier tone came into the money market despite the approach of the tax date. Call money loaned at 4 per cent and the bid on time money was reduced to AZ. Delay in making tax payments because of the uncertainty of reduction may have been factor. The federal reserve state ments showed, however, an increase in reserves and decreases in circulation and discounts.