The Washington herald., 1922-11-23
STOCKS OFF, TO4
POINTS IN LATE
SAGGlNG MARKET
Prominent Banker Believes
= list Is Suffering from Too
Many New Offerings.
BY BRoADAN WALL.


S'sf- BY BRoADAN WALL.
NEW YORK. Nov. 22.-"The
stock and bond markets are suffer
fnS indigestion. Too many new Of
ferings. have been made at prices
which were above those in keeping
with the money market. Until
, these securities are digested quota
tions win continue to sag. Another
reason for the weakness Of stocks
- found IN the efforts being made
by the New York stock exchange
authorities to reform its members
, and methods Of doing busines. The
group running matters for the stock
exchange is making so many mis-
takes that they will bring on their
. heads the very thing which they
gTarer trying to avoid-incorporation.
!. Their recent activities have served to
pnsettle confidence" This state
ment was made by a prominent
banker in reply to an Interrogation
: as to what was the matter with the
=. securities markets.
This question was asked following
Q weak stock market In which de-
clines ranged from one to four
points The ease with which prices
7meged In the afternoon seemed to
confirm the statements that stocks
we're lodged in hands where they
would not stay put" A glance at
the. much smaller attendances In
customers rooms Of the big wire
a RNvs ha
sahRnce Of buying power.
RARLY CHANGES IRREGULAR.
'' Price changes were irregular in
TIE forenoon. Substantial improve
nent was shown in st. Louis South;
western. Missouri Pacific preferred,
and United States Industrial Al
cohol. Mexican shares and Allied
Chamical seemed in disfavor. Sugar
also showed up well early. Toward
noon the general list began to sag
Under the weight Of indigestion.
transportation shares were weakest
. with Baltimore & Ohio and Rock
, lslend shares showing sharp breaks.
!. The outburst of liquidation in the
Transportation shares caused the
sfrvet to suddenly decide that the
October earnings when published
would not make as good a showing
ago. Spectators and investors have
been filled with much bunkum the
last few weeks as to the good show
fng the common carriers would
make for October and November.
A growing fear also Is entertained
In the street that the transportation
act win be amended in a way which
eurtail raliroda profits.
Southern Pacific and Erie were a
few of the properties whose October
earnings are said to have been good.
St. Louis Southwestern shares dis
PLAYED marked strength IN antici-
patton Of the resumption of divi-
dends on the preferred soon.
OILS.
A revision Of prices for different
grades Of mid-continent oil resulted
in a marking up of most prices. The
new figures are based on the gravity
basis of the oil. Producers Of light
oil having a high gravity naturally
expressed satisfaction at the new
method. Sinclair will be one of the
chief beneficiaries under the new
pricemaking system. Cosden and
Company, Skelly and Phillips are
other companies favored by the
change.
II present negotiations carry
through, and It looks as they will,
they will shortly become acquainted
with the facts relative to the pro-
posed merger of five oil companies,
four of which are dealt in on the
stock exchange. Texas and Pacific
Oil Is considered the most attractive
of the companies under considera-
ton.
CUBA AMERICAN SUGAR.
The street was disappointed when
the Cuba American Sugar directors
failed to take any action with regard
to a dividend on the common, and
the Montana Power ordered only the
regular quarterly disbursement.
Strength of American Can, Con-
unental Can, and National Lead
stood out in feeble rally toward the
close. The strength Of these shares
10 due to expectations of better
treatment for shareholders.
A better undertone prevailed in
foreign exchange. Both sterling and
francs advanced.
Banks are appearing in the securi-
ties markets as sellers of securities.