The New York herald., 1922-11-12
FINANCIAL NEWS
AND COMMENT
Stocks, Especially Rails, Are
Sold Suddenly and Cease
lessly in Short Session.

/ Sudden and unexpected weakness broke
out In the stock market yesterday, and
under wave of heavy selling tho gen.
eral list broke from one to four points
and more. The railroad shares were un-
der especial pressure, and 1t appeared
to be in that department that the most
vigorous assault was directed. The de-
cline In the railroad shares was undoubt-
edly started by professional attacks de-
signed to uncover weak spots, for feelers
OF this character have been seen in the
market for several days, but until yes
terday they had failed of their purpose.
1t would be silly. however, to say that
all OF yesterdays selling was accounted
for by professionals who were trying to
work the market to lower levels. There
was without doubt some substantial
liquidation. One factor which induced
papy holders Of stocks to unload in the
sho,t but rather violent session was the
| manner in which many stocks under
such heavy pressure gave way before
the avalanche and broke previous points
Of resistance. When it was seen that the
support heretofore encountered at these
levels was missing there was a general
movement to unload.
Considerable talk Of adverse railroad
legislation has been heard In Wall
Street since election. but just what 1t is
based on no one can say definitely. It
Is felt In the financial district that sub
stantial Democratic membership In the
Houses Of Congress is not regarded
as particularly favorable for the rail-
roads.
Just what has happened in tho last
day or two to emphasize the situation
is not clear, but Wall Street remem-
bers very clearly the Adamson law and
several other pieces of legislation which
were produced during the Wilson Ad-
ministration. The Republican party
will. in all likelihood, control the Con-
gress, but the Democratic membership
will be of sufficient size to be menacing
If an attempt is actually made to leg
islate against the best interests of the
railroads What the railroads most
fear at this time, with or without rea-
son, is that the terms of the Trans
portation act will be so modified by
amendments. &C.. as to abruptly curtail
the regulatory powers Of the Interstate
Commerce Commission and give the
roads into the hands Of State bodies.
With such stocks as Rock Island SELL
ing under SO. more than IA points below
the high established a few weeks ago.
the decline in yesterdays two hours Of
trading measured rather large Atchi-
son. st. Paul, New York Central and In
fact all railroad shares suffered In i'm
portant measure.
At the same time declines of greater
violence and perhaps of wider extent
occurred in the industrial list No es-
pecial significance was attached to
these, however, for 1t was the selling of
! the rails which brought about the last
hour break in the rest of the list.
Foreign exchange rates rallied sharply
during the morning. Italian lire were
an especial feature by reason of the
sharpness Of their advance. 1t Is likely
that an overdone speculative position on
the short side of the foreign exchange
market was largely responsible for the
recovery.
There was little news at hand to indi-
cate any fundamental change in the gen.
eral foreign situation. Certain 1t is that
the speculative interest In the market for
foreign currences is greater at this time
than it has ever been before. This is the
result largely of changed conditions
brought about by the war-conditions
which now permit moves in rates in a
Single day which in pre-war days were
| unheard of.