Evening star., 1921-10-13
DROP IN MARKS
AFFECTS STOCKS
Silesian MuddIe Gives Bears
Advantage-lndependent
SteeIs Soft.
By STUART T.. WEST.

NE" YORK, October 13-Th,. finan-
clal markets today both here and
abroad We're called upon to face an
other stretch of the German repara-
tions uncertainty, in the latest ASPECT
II has assumed owing to the decision
OF the supreme council on the petition
of Silesia
Another violent drop over the holi-
day in German marks indicated that
the threat of the German chancellor
TO resign if the decision separating
upper SileSia from Germany were en-
forced was being taken seriously and
that there was full realization of how
this would aggravate the difficulty of
GermanyS meeting its indemnity OBJ
legation.
This decline. which carried mark
exchange down another ten points
had all occurred while New York was
Closed for business.
1t was the result of another panicky
ruSh OF German depoSitors to get rid
OF their cash in view of the predic-
tons by leading German fnancjers
that the loss of SiieSia would involve
another severe deprecia ton in the
currency.
1t was scarcely possible to detect
any signs outside the exchange mar
ket that the Silesian complication was
having any direct effect upon opera
tionS.
Other exchange rates We're more or
less unsettled by the collapse in
marks, but the security markets were
obviously much more interested in
other matters
The movement on the stock ex-
change was a curious compound of
advances and declines among indi-
Vidual stocks. but turned into more
positive weakness, with the losses
increasing as the session advanced
Mexican Petroleum lost three points.
independent steels, tobaccos. coalers
and lealhers We're off 2la points
Selling of the steels was readily ac-
counted for by the disappointment
felt over the Lackawanna Steel re-
port for the third quarter. in that
the company had failed to show any
Improvement, but. on the contrary.
had exhibited a considerably large
loss than during the first two quar-
ters of the year.
Behind the weakness in the rails
was very genuine uneasiness lest
the reduction in freight rates which
Is now being pressed upon the car
riers from all sides will not be COM
pensated. as the roads claim it must
be. by a further lowering Of ps.,ra
scales.
The possibility of the rail companies
losing in this way all that thev had
gained by the IL per cent reduction
OF July is decidedly unpleasant to
contemplate.
~" teSoiuS were made the
SeaSOard Air Line stocks following
the severe decline that has been 90.
ing on recently in the bonds of The
company. The reason for the weak
ness in Seaboard securities is perfect.
ly apparent in the earnings position
The road had a deficit of S166 900 in
August, in vivid contrast to the ex-
perience of nearly every other carrier
in the country. For the first eight
months of 1921 it only covered 20 Der
cent of it's fixed charges. This is suf-
ficient to show the insecurity of the
junior bonds and the very low prices
which the refunding As, the CONSOLE
dated 6s and the adjustment SIS have
now reached adequately explains why
the Seaboard stocks were thrown
over today.
The air continues full of rumors re-
garding Mexican Petroleum, and
there are some who think that an an
nouncement which is expected this
week will clear up the mystery re-
garding the market action Of the
stock. However, 1t can be said that
not one of the rumors which were
heard today could be set down as bull
ish. One was to the effect that the
company will soon announce the ac-
quisition of a South American prop
erty. Should this come about it would
be looked upon as official admission
that the Mexican oil properties are
slipping.