The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-07-10
LcIlII and
|ENca LOANS
N SHARP DROP
IKr sTuARf1F. KEET.

II STUARr'F r. WEST.
forl, July 1o.-Tte German
~ crisis With tho pscsimisuc
- attaching TO- Il over the
-, provided . ssvefs trial
n no markets today. In only
inportant quarters did weak
~. snnear. One was In the cot
.arket In which the Ill consid-I
~ spsculativs buying following
scssrnment crop report, had
ms position vulnerable. The
~ vas tho market for French
M Belgian loans. especially the
v1rnusat and municipal issues
~ n here on = dollar basis.
snea TAs which hai been sup
- q par during the hrst furry
saturday broke nearly 3 points.
Yrcach s. dropped below par,
1ecliae o. . points from Friday
~ mo over points ircn where
~ we're selling q week ago. Bel
~ 7hs were OF IN to z points
- day and over 3 points on the
-. French city issues were con-
aGnously weak and the French
netrial and railway bonds 70
~ foated here sold at the low
S 1rices so far reached.
q the foreign exchange ma ket
~ Immediate shock caused by
S1enanyIs application Tor o mora
sfium had been absorbed by Sat-
trays declines, following tho pro-
lated downward movement of the
- month. French francs recov.
nd q good part OF what they had
- at the week end. Italian lire
q the sams and even German
arks we're higher. This recovery
pvever, hardly represented any.
Aipg more than a very large shOr,
hterest In German anu French ex
1ange gathering in some Of it,
go6ts on the familiar theory gov.
Rning every speculative movement
hat the bad news" long expected
bas at least temporarily discount
u The course Of the Europea.
bablic loans was much more re
hble reflection of opinion regard
u the foreign troubles.
II has been perfectly clear To-
weeks past that the July install
mt on reparations. was In dan
n and that even if it were paid
nbaequent payments ip cash wer
bgether nnfikely. Repeatedlyh d
&been emphasized that France di'
" worst possible thing for he
w interest when she refused t
afepde to the judgment OF all tn
al1r allied representatives at tn
ng!s conference that the repara
IONS program must be modified.
Germany were to be put in q posi-
tbA,to continue meeting her obligs
tons. Yet holders of French an
Belgian bonds we're slow to realiz
the seriousness of the situation
from the point Of view Of othe
Countries until the crisis had actr
blly come.
Our own security markets recov
bred form what slight i'll effect
hey had suffered on Saturday. A
times efforts were made to fore
ypriees down, but they had very lit
] ~ success. Prices were irregula
bit at no time weak. In stocks
where there was a short interest
sOme rallies occurred. The Stand
ord Oils, the Independent Steel.
The motors and the equipments re
Bounded with considerable yigol
pnce 1t was seen that no liQuids
Don was coming cut. America
Gan was the object Of a specis
)uying movement on unofficial RI
1orts of very favorable earning
Ind on the analysis of the CON
pny's financial position whic
shows that 1t is better able tina
yver before to begin dividends o
The common stock.
I The indifference of our bond an
ltock markets to the European or
us was to be explained on tw
rounds. In the first place, Amer
ian industries for over a year hav
Questioned themselves to an e2
port trade down to rockbottom.
complete cessation of German buy
ng and the Gripping of the bu,
ns power Of France would NJ
make any vital difference. In tn
second place, sober American judge
nent while believing that Franc
ns made serious mistake an
aces perilous situation for 1,
attitude toward reparations and tn
proposed German loan, still, fee
mat France will prefer to bae
eown on those points rather tina
nsk bankruptcy for herself.
A very dull afternoon in ii
.s!nare list was only enlivened
me notable strength of. the stock
u Pan-American companies an
Ume OF the coal shares. Buyin
" the latter found its incenti,
~ the hope of strike settlemei
resulting from the latest efforI
put forth by the president at Il
eays conference. Strength of Il
Moependent steels appeared to
.ntclpating early and fayorab
sciaion by the Federal Trade con
| ss,ou on tho validity of the pr,
Used mergers. The monthly toI
sase figures Of the United State
Geei Corporation were remarkab
~ me size Of untitled order
sAJoS tons. This brings the tot